How we helped Toronto Group create 150 jobs and launch a charcoal manufacturing plant on the West Coast
Coal is South Africa’s dominant energy source. The Charcoal industry plays a vital role in the South African economy as it not only acts as a major source of economic income, but also acts as an important employer.
Toronto Group is a Western Cape-based business specializing in the manufacturing of lump wood and charcoal. In August 2021, Toronto Group launched their first-of-a-kind charcoal manufacturing plant, which was set to produce 10 000 tons per year of export-grade charcoal from biomass of invasive alien vegetation. During the launching process, Toronto Group were met with a delay in the issuing of a Transfer Duty receipt from SARS. The Transfer receipt would complete the transfer of a portion of the farm in Malmesbury.
Toronto Group had submitted all the required supporting documents to SARS in September 2021, however, when November 2021 rolled around and they had not been issued the receipt of transfer, Toronto Group reached out to the Red Tape Reduction Unit for assistance with the delay.
Red Tape Reduction official, Michelle Ellis, intervened by escalating the matter to SARS. Despite SARS’ general reluctance to engage with third parties who aren’t tax practitioners or attorneys with a power of attorney, consistent communication from the Red Tape Reduction Unit enabled that the Transfer Duty receipt be issued within two weeks!
Resolving the matter within two weeks was an impressive victory given the complex nature of the case at hand, as well as the strict rules SARS has in place.
What are the economic gains for the business and the economy?
When the receipt was issued, business operations could commence, and this enabled Toronto Group to pay their service providers. The start of business operations at the manufacturing plant meant that 150 direct and 75 indirect job opportunities were added to the value chain.
The charcoal manufactured by Toronto Group will be 100% exported, with regions such as the United Kingdom and Europe considered as potential markets.
Making it Easier to Do Business
The response of the official and their understanding of the impact that red tape has on business and job opportunities, meant that networks and partnerships could be leveraged in order to help our economy.
The Department of Economic Development and Tourism is committed as part of its culture transformation strategy to drive the positive values and attitude held by Michelle, as part of our vision to build a Western Cape that is driven to see business as a citizen where are able to optimize processes and relationships that can help reduce red tape for our economy, and save many more businesses from losing revenue.
A few words from the client:
“My gratitude and appreciation is beyond words, all I can say is, “THANK YOU”. Me and my team will forever be indebted to the Red Tape Reduction Unit”
The removal of this red tape barrier successfully added to economic growth and job creation – both of which are key to the objectives of Ease of Doing Business Programme within the Department.