Public policy advice on government subsidies

Genesis was asked by a UK investment bank for public policy advice relating to the international purchase of a call-centre business in South Africa.

The value of the target company depended partly on whether a state subsidy for business process services (BPS) firms was to be continued. This required an independent professional opinion on the political and policy drivers of the BPS subsidy and whether it was likely to be continued or not, and under which terms.

We analysed the performance of the BPS sector, the employment returns on the subsidy to date, and the political economy issues likely to guide the government’s decision including national elections. Based on our professional opinion, the transaction went ahead.