These grants related to Industrial development within various industries with a focus on Manufacturing. The following grants are applicable to this industry:
- MCEP – Manufacturing Competitiveness Enhancement Programme
- STP – Seda Technology Programme
- SPII – Support Programme for Industrial Innovation
- SSAS – Sector-Specific Assistance Scheme
- PI – Production Incentive
- FIG – Foreign Investment Grant
- EIP – Enterprise Investment Programme (MIP)
- CTCIP – Textile Competitiveness Improvement Programme
- CPFP – Capital Projects Feasibility Programme
- BPS – Business Process Services Incentive
Industrial Development-Related Incentives
The MCEP is an R5,8bn initiative supporting South Africa’s manufacturing industries to improve competitiveness and sustain employment. It is backed by the Department of Trade and Industry and the Industrial Development Corporation. Cash grants and concessionary industrial financing facilities at a fixed interest rate of 4% are available to companies operating in certain key manufacturing industries. Funding is available to enhance competitiveness and improve resource efficiency.
As part of the Government’s strategy to consolidate small-enterprise support activities since April 2006, the activities of the Godisa Trust, the National Technology Transfer Centre (NTTC), the three business incubators of the dti, the Technology Advisory Centre (TAC), the technology-transfer activities of the Technology for Women in Business (TWIB) programme and the support programmes for small enterprises of the South African Quality Institute were merged into a single programme – the Seda Technology Programme (STP).
The SPII is a support programme of the dti, managed by the Industrial Development Corporation (IDC). The SPII is designed to promote technology development in industry in South Africa through the provision of financial assistance for the development of innovative products and/or processes. The SPII specifically focuses on the development phase, which begins at the conclusion of basic research and ends when a pre-production prototype has been produced.
The SSAS is a reimbursable 80:20 cost-sharing grant offering financial support to export councils, joint action groups and industry associations. The scheme comprises two sub-programmes, namely Generic Funding and Project Funding for Emerging Exporters (PFEE). The aim of the SSAS is aligned to the dti’s overall objectives in several respects, as indicated below.
Under the PI, applicants can use the full benefit as either an upgrade grant facility or an interest subsidy facility, or a combination of both. Eligible enterprises include clothing manufacturers, textile manufacturers, Cut, Make and Trim (CMT) operators, Footwear manufacturers, Leather goods manufacturers, and Leather processors (specifically for leather goods and footwear industries).
The FIG compensates qualifying foreign investors for costs incurred in moving qualifying new machinery and equipment (vehicles excluded) from abroad to the Republic of South Africa.
Manufacturing Investment Programme (MIP)
The MIP is a reimbursable cash grant for local and foreign-owned manufacturers that wish to establish a new production facility; expand an existing production facility; or upgrade an existing facility in the clothing and textiles sector.
The CTCIP aims to build capacity among clothing and textile manufacturers and in other areas of the apparel value chain in South Africa to enable them to effectively supply their customers and compete on a global scale. Such competitiveness encompasses issues of cost, quality, flexibility, reliability, adaptability and the capability to innovate.
The CPFP is a cost-sharing programme that contributes to the cost of feasibility studies likely to lead to projects outside South Africa that will increase local exports and stimulate the market for South African capital goods and services.
The South African Government implemented a Business Process Outsourcing and Offshoring (BPO&O) incentive programme as from July 2007. Between July 2007 and March 2010, the incentive resulted in the creation of at least 6 000 new jobs and attracted R303 million in direct investment. As part of a process of improving South Africa’s position as an investment destination, a systematic review of the BPO&O incentive programme was undertaken with the private sector, resulting in a revised BPS incentive