the the dti dti Incentive Programmes SUMMARY 1 Industrial - PowerPoint PPT Presentation

the the dti dti Incentive Programmes SUMMARY 1

Industrial Development Incentives Division • Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation • Facilitate broad-based economic participation the dti’s through targeted interventions to achieve more strategic objectives inclusive growth • To stimulate and facilitate the development of sustainable, competitive enterprises through efficient provision of effective and accessible IDAD’s mission funding mechanisms (i.e. incentive schemes) that support national priorities statement 2

IN INCENTIV CENTIVE E SCHEMES SCHEMES CLUSTER INCENTIVE SCHEME • Enterprise Investment Programme (EIP) MANUFACTURING • 12i Tax Incentive INVESTMENT • Automotive Incentive Scheme (AIS) • People-carrier Automotive Investment Scheme (P-AIS) • Manufacturing Competitiveness Enhancement Programme (MCEP) COMPETITIVENESS • Export Marketing & Investment Assistance (EMIA) INVESTMENT • Capital Projects Feasibility Programme (CPFP) • Film & Television Production SERVICES • Business Process Services (BPS) INVESTMENT • Black Business Supplier Development BROADENING PARTICIPATION Programme (BBSDP) • Co-operative Incentive Scheme (CIS) • Incubator Support Programme (ISP) • Critical Infrastructure Programme (CIP) INFRASTRUCTURE INVESTMENT

Manufa Man ufactu cturi ring ng I Inve nvestmen stment t Cl Cluste uster PROGRAMME PURPOSE TARGET OFFERING • 15-30% grant for investment in land & EIP: Manufacturing Investment in the Manufacturers with emphasis on Investment Programme manufacturing sector lead sectors. buildings, machinery & equipment and customised commercial vehicles • 15% transportation costs for machinery & equipment by FDI Foreign Direct Investor s setting Foreign Investment Incentivise the actual 15% of the value of qualifying imported up manufacturing projects in Grant ( FIG ) transport costs of machinery and equipment South Africa relocating qualifying new to a maximum of R10m machinery and equipment SA entities involved in Fish EIP: Aquaculture Investment in the 20 - 45% grant for investment in land, hatcheries and fish farms Development and aquaculture sector and buildings , machinery and (primary aquaculture), Enhancement equipment , commercial vehicles and processing and preserving of Programme work boats and bulk infrastructure aquaculture fish (secondary aquaculture), service activities to operators of hatcheries and fish farms (ancillary aquaculture) Automotive Investment in light Motor vehicle manufacturers 20-30% grant for qualifying Investment Scheme motor vehicles, and producing 50,000 units per investment in machinery & (AIS ) components plant within 3 years equipment and buildings. manufacturing. • Component manufacturers. 4

Man Manufa ufactu cturi ring ng I Inve nvestmen stment t Cl Cluste uster PROGRAMME PURPOSE TARGET OFFERING People-carrier Investment in people- People carrier manufacturers / 20-30% grant for qualifying automotive carrier vehicles and assemblers investment in machinery & investment Scheme components equipment and buildings. • Component manufacturers. (P-AIS ) manufacturing. • Training allowance: max R36 000 per 12I (Investment and To promote industrial Medium to large manufacturers training allowance) upgrading and new with investment between R30m person investment in and R1.5bn • Max 55% of qualifying investment manufacturing costs in machinery & equipment 5

Compe Competi titi tive vene ness ss Inve Investmen stment t Cl Cluste uster PROGRAMME PURPOSE TARGET OFFERING Manufacturing Competitiveness Improve South African Cost sharing grant for Capital Enhancement Programme Manufacturing Manufacturers and Services investment; (MCEP) Competitiveness Supporting Manufacturing Resource efficiency improvement; Enterprise-level competitiveness improvement; Feasibility studies; Cluster competitiveness improvement; Pre- and post-dispatch working capital facility Export Marketing and Investment To develop export Export ready manufacturers Cost sharing grant for exhibition Assistance (EMIA ) market for SA goods costs, marketing material & and services and research in foreign markets recruit FDI Capital Projects Feasibility Promote the export Capital goods sectors and Cost sharing grant (max 55%) for Programme of South African consulting engineers feasibility study costs capital goods and services 6

Services Se rvices Inve Investmen stment t Cl Cluste uster PROGRAMME PURPOSE TARGET OFFERING BPS (Business Encourage the creation of Enterprises offering A baseline incentive which Process Services) employment opportunities from Business Process Services offers a 3-year operational Incentive the offshore market to the offshore market expenditure on actual jobs created A graduated bonus incentive which is offered for greater job creation paid once in the year in which the bonus level is first achieved Film & TV To grow the film industry to Local and foreign film 20% of Qualifying South African Production Expenditure Production create jobs and to transfer producers (QSAPE) skills 25-35% of Qualifying South African Production Expenditure for local films 7

Broa Br oade dening ning Parti Participa cipati tion on C Cluster luster PROGRAMME PURPOSE TARGET OFFERING • Majority black owned • 80:20 cost sharing grant for Black Business Broader participation of Supplier Development black-owned SMMEs entities business development Programme (BBSDP) through provision of services • R250k to R35m business development • 50:50 cost sharing grant for turnover services tools, machinery and • 1 year trading equipment • Registered co- Cooperative Incentive Broader participation by 100% grant for machinery, Scheme (CIS) promoting the operative equipment & business development of development services • Operate in the cooperatives emerging sector • Manufacturing, retail & services • Incubator Support Encourage private sector South African registered 50:50 cost-sharing support for Programme partnership with government legal entity large private sector investors • to: registered higher 60:40 cost-sharing support for education or further support incubators in order to SMMEs education institution develop SMMEs Capped at a maximum of R10 • licensed and/or nurture SMMEs into million per financial year over a 3 registered science sustainable enterprises that year period. council. can provide employment and contribute to economic growth 8

Infra Infrastru structu cture Inv re Inves estme tment nt Cluste Cluster PROGRAMME PURPOSE TARGET OFFERING • Private investors/ Critical Infrastructure Leverage strategic A cash grant to a Programme (CIP) investment projects companies maximum of 30% capped (Greenfields and at R30million for qualifying • South African brownfields) by infrastructure expenditure. Municipalities financially supporting infrastructure critical to such projects 9

Website: www.thedti.gov.za Government incentives website: www.investmentincentives.co.za 10