Notice Board:

Please note that the Bid Adjudication Committee meeting scheduled for Friday, 17 January 2020 has been postponed until Friday, 24 January 2020. 

  Qualifying Criteria - Incentives

Nelson Mandela Bay municipality business incentive

The following minimum criteria must be met by applicant investors in order to qualify for these discounts:  

  • The investment must be made within Nelson Mandela Bay;
  • The investment must qualify as medium or large business or be equal in size to a medium or large business, as defined by the National Small Business Amendment Act (2003)
  • (See Annexure D for more details), i.e.
    • Employ more than 50 permanent staff,
    • Generate minimum turnover of between R5 million and R15 million depending on which sector the business operates), and
    • Have minimum asset values of between R2 million and R5 million, depending on which sector the business operates;
    • The investment must be a new investment or expansion of an existing business in Nelson Mandela Bay, i.e. it does not apply to businesses that have simply relocated within Nelson Mandela Bay.
  • The investment must be of a commercial or industrial nature on land zoned for industrial or commercial activities;
  • The investment must have been made within 12 months prior to the application and after approval of this policy by the NMBM Council.  

Businesses and investors will have to provide the relevant documentation required by the municipality to substantiate the application and proof that these criteria have been met. The size of each of the incentives identified above is the maximum that is available to investors per incentive. Preferential consideration should be given to those investments that strengthen the development priorities of the NMBM EGDS, i.e.  

  • Investment in priority geographical areas of the metro;
  • Investment in priority sectors of the metro;
  • Promote Broad-Based Black Economic Empowerment;
  • Extent of local procurement which strengthens the local economy;
  • Number of direct employment opportunities created;
  • Increase the human capital (skills and knowledge) within NMB.  

The final agreement must be ratified by the Exco and Council, and should be publicly available. This will encourage consistency and transparency.

Each application should be weighed and scored against these evaluation criteria. The following incentive weighting matrix could apply:

Nelson Mandela Bay Incentives Criteria


The following terms and conditions will apply to contracts between the NMBM and the successful applicant: 

  • The maximum period of the incentive contract is five (5) years after application.
  • The financial discounts will only commence upon the actual start date of production /business services
  • Change of ownership or name of the enterprise already receiving incentives does not qualify such enterprises to re-apply for a new allocation of incentives, with existing incentives granted continuing for the remainder of its period, provided original conditions are still met
  • All incentives will form the subject of an incentive contract between the relevant municipality and the applicant
  • Incentives will be suspended if the all existing accounts with the municipality are not up to date, i.e. not more than a maximum of 60 days in arrears.
  • The municipality may withdraw any incentives offered to a specific applicant at its own discretion if, in its opinion, the applicant has breached any condition in the incentive contract.

 Please note that this list is not exhaustive as the normal contract terms and conditions as per NMBM supply chain policies apply.

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