This is a cost-sharing grant (20% - 25%) available to component manufacturers and light vehicle manufacturers. The finance may be used for process improvement, conformity assessment, product improvements, skills development, resource efficiency, resource efficiency, IT systems, buildings and machinery.
An additional non-taxable cash grant of five percent (5%) may be made available for projects that maintain their base year employment figure throughout the incentive period and achieve at least two of the following economic requirements:
A further grant of five percent (cumulative 10%) may be awarded if the project can demonstrate the following:
This incentive program aims to fast track the participation of black industrialist in the South African economy. Currently the key focus is on supporting businesses that operate in any of the following areas.
The scheme offers a cost-sharing grant ranging from 30% to 50% to approved entities, to a maximum of R50 million. The total amount of the grant will depend on the level of black ownership and management control, the economic benefit of the project and the project value. Funds can be spent on any of the following items:
Other manufacturing activities may be considered based on economic impact in terms of job creation, geographic spread and strengthening supply chains.
Before collecting documents and submitting an application, please ensure that you read the IMPORTANT NOTICE for the BIS. Businesses wishing to apply for funding must be allocated an enquiry number before submitting an application. Guidelines can be downloaded from the dti website.
The grant covers 50% of the costs for Capital Feasibility Programmes conducted outside of Africa, and 55% of programmes conducted in Africa. The minimum amount of local content in the project must be 50% for goods, and 70% for professional services. You may not receive dual government funding on this project.
Additional evaluation criteria which can be considered as motivational factors for this incentive are:
The Cluster Development Programme (CDP) is an incentive programme that aims to promote industrialisation, sustainable economic growth and job creation needs of South Africa through cluster development and industrial parks. There are 3 components of this funding as shown below:
The shared infrastructure grant is a non-taxable cash matching grant towards investment in assets such as buildings, machinery, equipment, tools, jigs, dies and commercial vehicles.The grant has a maximum limit of R10 million per cluster.
Business Development Services
The objective of the incentive is to support business development services initiatives of the cluster such as conformity assessments (standards accreditation), financial management, Information Technology services, logistics management, professional services, Human Resource Management, benchmarking exercises, market research, feasibility studies, etc. It is a non-taxable cash matching grant of up to 80% of the investment to a maximum grant of R5 million per cluster.
Cluster Management Organisation (CMO)
This component is aimed at supporting strong dynamics amongst enterprises and other stakeholders in the cluster. The CMO purpose is to manage core operation and delivery by the cluster. The CMO Funding is a non-taxable cash matching grant of up to 80% of the costs payable at the establishment of the CMO to a maximum grant of R5 million per Cluster
Prepare a detailed business plan that shows how the pilot project will work. It is important to read the fund guidelines before preparing this plan to ensure that all the required aspects are covered.
It provides marketing assistance to develop and grow export markets, funds marketing research and assists with patent registration, quality marks and product marks. It also focuses on foreign direct investment as well: funding missions and research.
You pay upfront for the costs and then claim back from the department as per the terms of the agreement. Note that events taking place between the 10th of December and 10th of January are not eligible for funding. In most cases, this scheme will require your business to have existed for at least one year.
Below are the details of what items this scheme can fund.
1. Individual Exhibition Participation:
2. Primary Market Research & Foreign Direct Investment:
Exporters will be compensated for costs incurred recruiting in new FDI into South Africa through personal contact by visiting potential investors in foreign countries.
3. Individual Inward Missions:
Assistance is provided to South African businesses and organisations that are organising an inward buying investor, to make contact with them to conclude an exporters order or to attract foreign direct investment.
This is a cost-sharing incentive designed to promote enterprise competitiveness and job retention in the manufacturing sector.
The total amount of the grant is based on the size of the company applying and is calculated either as a percentage of their average manufacturing value-added (MVA) over 2 years or, in the case of a company with total assets valued at less than R5 million, as a cost sharing based on the investment they have made.
The MCEP provides incentives to build the competitiveness of the manufacturing sector. There are two options that can be applied for:
Please note that with effect from 11 May 2015, all new applications with an investment value of R50 million and above, will no longer be considered under the Manufacturing Competitiveness Enhancement Programme (MCEP) Incentive. Applicants with an investment value of R50 million and above are encouraged to apply for the 12I Tax Allowance Incentive.
This is a cost-sharing incentive (varying from between 10% to 25% of the cost) for manufacturing where the total cost of the required investment does not exceed R50 million. The funds are divided into the following areas and most of these have their own application process and investment requirements:
Industrial Financing Loan Facilities
Projects identified by the dti sector desks and IDC’s strategic business units that focus on new areas with 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.
Note: The Working Capital and the Distress Funding Facilities are loan products that will be managed by the IDC.
The incentive grant can be invested in capital equipment for upgrading and expansions; green technology upgrades for cleaner production and resource efficiency activities; enterprise-level competitiveness improvement activities for new or increased market access, product and process improvement and related skills development; as well as conducting feasibility studies.
Please visit the dti website to download application forms and find out more details on how to apply. It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to take into account. Please note that if you are already receiving other government incentives, you may not be eligible to apply for this incentive.
Note: The timing of your application is important. Completed applications should reach the offices of the dti no later than:
General eligibility criteria:
It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to comply with or take into account (these vary according to the focus of the business you run). Please visit the dti website to download application forms and find out more details on how to apply.
There are two components of this grant:
If your company is already receiving funding from other government incentives, the total amount of funding received from all schemes must not exceed the total cost of the project. (You can’t make a profit off of government grants!) You must be able to prove profitability, and the more profitable your business, the higher the grant that is available. Because of this, this grant is not suitable for start-ups.
NOTE: This is an annual program and applications close in January each year. Visit the website to download to application guidelines as these clearly set out how the fund works and what expenditures are catered for.
Organisations supported under SSAS include Export Councils, Joint Action Groups, Industry Associations and those involved in the aimed at the development of emerging exporters. Note that you claim the grant only after you have paid for all expenses, so you will have to have the cash flow available to cover these costs.
The grant can cover export development and promotion costs, product and company development costs, service development and advertising and publicity. Note that the development costs include consultancy fees and expenses towards installing or improving quality management systems.
If the grant is used to perform research or industry studies or collect data this will become the property of the dti.
Sectors that qualify for funding application are:
The business must be an organisation that provides support to emerging exporters with a strong emphasis on developing the base of previously disadvantaged business owners operating in the export industry.
The maximum grant per project is R1.5 million. Applications must be in 2 months prior to project commencement. It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to take into account. Please visit the dti website to download application forms and find out more details on how to apply.
SPII is focused specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced. The development should represent a significant advance in technology and its subsequent production must take place in South Africa.
Allocation of funds is linked to BEE status
The BEE status of the company applying for the funds dictates the amount of finance that can be provided:
There are a number of minor compliance requirements with this fund. It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to take into account. Please visit the dti website to download application forms and find out more details on how to apply.
Finfind provides its services free of charge to businesses seeking finance. Our primary purpose is to link SMEs with all the relevant finance providers and finance products that match their funding needs. As a matching service we are not required to be a registered finance provider as we do not loan money directly.