The Department of Trade and Industry has made available grants to assist South African businesses to gain a competitive edge and to enable them to expand their operations. Under programs such as the MCEP – the Manufacturing Competitiveness Enhancement Programme, the DTI has already disbursed over R1 billion to qualifying companies
The MCEP grant provides a rebate for the purchase of machinery, tools, equipment, cleaner energy, new product marketing, production efficiency and most other projects related to increasing the competitiveness of manufacturing companies in South Africa across almost all sectors. This includes investment in software as well as processes and projects related to manufacturing. Companies that provide services to manufacturing companies may also apply. These include consultants, engineers and service providers that consult to the manufacturing industry.
The MCEP’s dual objective is to assist local manufacturers in improving enterprise competitiveness and to stimulate job retention and creation.
Now is the time to apply for the MCEP grant. The program will run until 2018 and funds are limited, depending on when applications are submitted
The grant pays out a percentage of your investment. Typically, in the case of capital investment, the cost sharing will be between 30%, 40% or 50% of the investment, with smaller enterprises receiving a larger percentage of their investment. On
In order to qualify for the grant, the following documentation and criteria need to be provided:
- BEE level 4 compliant
- Historical Assets of at least R500.000;
- One year in operation and trading as a business;
- Have a valid tax clearance certificate;
- Show proof of funds for your contribution;
- Company registration document;
- Employee list;
- Financial Statement;
- ID copies for members;
- Asset Register.
To apply for the grant or to find out more information, call Incentives SA or visit our website at http://incentivesa.co.za
The Manufacturing Competitiveness Enhancement Programme (MCEP) which is one of the key action programmes of the Industrial Policy Action Plan (IPAP) 2012/13 – 2014/15 will provide enhanced manufacturing support aimed at encouraging manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value-addition in short to medium term.
The MCEP comprises two subprogrammes: the Production Incentive (PI) and the Industrial Financing Loan Facilities which will be managed by the dti and the Industrial Development Corporation respectively.
The Production Incentive is the largest component of the MCEP (80% by Rand value). Calculation of MCEP credits for the Production Incentive for each enterprise will be up to 25% of the manufacturing value added.
Applicants may apply their credits to a combination of any of the following five subcomponents of the Production Incentive:
- Capital Investment grant;
- Green Technology and Resource Efficiency Improvement grant;
- Enterprise-Level Competitiveness Improvement grant;
- Feasibility Studies grant; and
- Cluster Interventions grant.
Industrial Financing and Loan Facilities
The Industrial Financing and Loan facilities comprise two components: Pre/post-dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund.
- Pre/Post-dispatch Working Capital Facility offers a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%.
- Industrial Policy Niche Projects Fund: projects identified by the dti sector desks and IDC’s Strategic Business Units that focus on new areas with the potential for job creation, diversification of manufacturing output and contribution to exports, that would otherwise not be candidates for commercial or IDC funding, may be eligible for an MCEP grant that may be structured as part of the borrower’s equity contribution