The South African government approved a tax incentive for local biofuels manufacturer Mabele Fuels (Pty) Ltd as part of the Tax Allowance Program.



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Government Gazette. The Republic of South Africa. Volume 570, No. 35931 of 7 December 2012. Department of Trade and Industry. Notice 1009 of 2012. Available at:

Department of Trade and Industry. Section 12I Tax Allowance Incentive (12I TAI). Available at:

Inception date: 07 Dec 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On 7 December 2012, the Department of Trade and Industry (DTI) of South Africa issued Notice 1009 announcing the approval of an application made by Mabele Fuels (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local bioethanol manufacturer which is deductible from taxable income is circa ZAR 429 million (circa USD 49.6 million), and the training allowance is circa ZAR 1.3 million (USD 150,000 million). The Ministry estimates the foregone revenue to be ZAR 120,513,070 (USD 13.9 million)

The DTI has stated that the manufacturing qualifying assets accounted for the company's total investments estimated at circa ZAR 1,226 million (USD 141.6 million), and due to the specific characteristics of the project, the DTI classified this investment as a Brownfield project.

The purpose of the investment is to produce bioethanol and distillers dried grains with solubles.

Section 12I Tax Allowance Incentive
The 12I Tax Incentive seeks to promote Greenfield and Brownfield investments with the objective to boost the productivity of the South African manufacturing sector and increase the productivity of the human capital.

The minimum investment required in qualifying assets is ZAR 50 million for a greenfield project (projects that use only new and unused manufacturing assets) and an additional investment of ZAR 30 million for a brownfield project (expansions or upgrades of existing industrial complexes). 

The total investment allowance range between 35% and 55% (or ZAR 350 million and ZAR 900 million) depending on the type of the investment, the status classification, and the localization.