the dti Incentive

Programmes

SUMMARY

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 Industrial Development Incentives
Division
• Facilitate transformation of the economy to
promote industrial development, investment,
competitiveness and employment creation
the dti’s • Facilitate broad-based economic participation
strategic through targeted interventions to achieve more
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
statement support national priorities

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 INCENTIVE 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

COMPETITIVENESS (MCEP)
INVESTMENT • Export Marketing & Investment Assistance (EMIA)
•Capital Projects Feasibility Programme (CPFP)

SERVICES •Film & Television Production

INVESTMENT • Business Process Services (BPS)
BROADENING •Black Business Supplier Development
PARTICIPATION Programme (BBSDP)
• Co-operative Incentive Scheme (CIS)
• Incubator Support Programme (ISP)
INFRASTRUCTURE • Critical Infrastructure Programme (CIP)
INVESTMENT
 Manufacturing Investment Cluster
PROGRAMME PURPOSE TARGET OFFERING
EIP: Manufacturing Investment in the Manufacturers with emphasis on •15-30% grant for investment in land &
Investment Programme manufacturing sector lead sectors. buildings, machinery & equipment and
customised commercial vehicles
•15% transportation costs for
machinery & equipment by FDI

Foreign Investment Incentivise the actual Foreign Direct Investor s setting 15% of the value of qualifying imported
Grant ( FIG ) transport costs of up manufacturing projects in machinery and equipment
relocating qualifying new South Africa
to a maximum of R10m
machinery and
equipment

EIP: Aquaculture Investment in the SA entities involved in Fish 20 - 45% grant for investment in land,
Development and aquaculture sector hatcheries and fish farms and buildings , machinery and
Enhancement (primary aquaculture), equipment , commercial vehicles and
Programme processing and preserving of 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.

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 Manufacturing Investment Cluster

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 •Component manufacturers. equipment and buildings.
(P-AIS ) manufacturing.

12I (Investment and To promote industrial Medium to large manufacturers • Training allowance: max R36 000 per
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

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 Competitiveness Investment Cluster
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

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 Services Investment Cluster

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 create jobs and to transfer producers Production Expenditure
skills (QSAPE)

25-35% of Qualifying South

African Production Expenditure
for local films

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

PROGRAMME PURPOSE TARGET OFFERING

Critical Infrastructure Leverage strategic •Private investors/ A cash grant to a

Programme (CIP) investment projects companies maximum of 30% capped
(Greenfields and •South African at R30million for qualifying
brownfields) by Municipalities infrastructure expenditure.
financially supporting
infrastructure critical to
such projects

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Website:
www.thedti.gov.za

Government incentives website:

www.investmentincentives.co.za

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