The Department of Trade and Industry (also known as The DTI ) and its subsidiary agencies are involved in promoting economic development, Black Economic Empowerment, implementing commercial law, promoting and regulating international trade, and consumer protection.
To increase industrial competitiveness and broaden the participation of enterprises in the economy, the DTI provides financial support to qualifying companies in various sectors of the economy. Financial support is offered for various economic activities, including manufacturing, business competitiveness, export development and market access.
Here’s a list of the Industrial Development Incentives
Automotive Investment Scheme (AIS)
The AIS is designed to grow and develop the automotive sector through investment in new and/or replacement models and components that will increase plant production volumes, sustain employment and/or strengthen the automotive value chain.
Capital Projects Feasibility Programme (CPFP)
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.
Clothing and Textile Competitiveness Improvement Programme (CTCIP)
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.
Production Incentive (PI)
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.
Critical Infrastructure Programme (CIP)
The CIP aims to enhance investment by supporting critical infrastructure, thus lowering the costs of investment. It is made available to approved eligible enterprises upon the completion of the infrastructure project concerned. Infrastructure for which funds are required is deemed to be ‘critical’ if the investment would not take place without the said infrastructure or the said investment would not operate optimally.
Manufacturing Competitiveness Enhancement Programme (MCEP)
The objectives of the MCEP are to:
- Encourage enterprises to upgrade their production facilities, processes, products and upskill workers.
- Provide for the upgrading of sectors to maximise output and employment.
- Expand existing Industrial Development Corporation (IDC) distressed funding facility to small and medium enterprises, and reduce the cost of capital for distressed enterprises.
- Reduce the price of working capital for exporters and businesses participating in Government infrastructure programmes.
- Strengthen the responsiveness of available incentive schemes to the current economic challenges.
People-Carrier Automotive Incentive Scheme (P-AIS)
The incentive is designed to stimulate a growth path for the people-carrier vehicles industry through investment in new and/or replacement models and components that will result in new employment, retention of current employment and/or strengthen the automotive vehicles value chain.
Section 12I Tax Allowance Incentive (12I)
The 12I Tax Incentive is designed to support Green field investments
(i.e. new industrial projects that utilise only new and unused manufacturing assets), as well as Brown field investments (i.e. expansions or upgrades of existing industrial projects). The new incentive offers support for both capital investment and training.
Support Programme for Industrial Innovation (SPII)
The SPII is a support programme of the DTI. This programme 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.
Aquaculture Development Enhancement Programme (ADEP)
The ADEP is an incentive programme available to South African-registered entities engaged in primary, secondary and ancillary aquaculture activities in both marine and freshwater classified under SIC132 (fish hatcheries and fish farms) and SIC 301 and 3012 (production, processing and preserving of aquaculture fish). The grant is provided directly to approved applications for new projects or the upgrade or expansion of existing projects.
Apply through Funding Connection
At Funding Connection we understand the complexities of the various funding agencies, and the unique application criteria for each. We have assisted numerous entrepreneurs through the application process to access funds like this for business growth, and we can assist you with the same.
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