Neville Goodchild Gauteng Regional Office [e-mail] 27(0)12 394 1239

1
Neville GoodchildGauteng Regional
Officenevilleg_at_thedti.gov.za27(0)12 394 1239

• THE ENTERPRISE ORGANISATION
• www.thedti.gov.za

2
PRODUCTS

• Small Medium Enterprise Development Programme
  (SMEDP)
• Skills Support Programme (SSP)
• Foreign Investment Grant
• Strategic Industrial Projects
• Critical Infrastructure Facility
• Industrial Development Zones
• Black Business Supplier Development Programme
  (BBSDP)
• Support Programme for Industrial Innovation

3
SMALL MEDIUM ENTERPRISE DEVELOPMENT PROGRAMME

• PROMOTION OF INVESTMENT IN FIXED ASSETS IN NEW
  MANUFACTURING, TOURISM AND AQUACULTURE
  ACTIVITIES AND IN THE EXPANSION OF EXISTING
  ACTIVITIES
• Max qualifying investmentR100mManufacturing,Touri
  sm, ICT, Aquaculture, Agro-processing,
  International Call Centres

4
TYPES OF ENTITTIES THAT QUALIFY

• Incorporated entities (Pvt and Public)Close
  CorporationSole ProprietorsCo-operativesPartner
  ships
• MINIMUM EQUITY
• 10 (5 for BEE) for projects with qualifying
  fixed assets up to R5 million
• 25 (15 for BEE) for projects with qualifying
  fixed assets of R5 million or more

5
QUALIFYING ASSETS MANUFACTURING

• Land and buildings at cost /Rented land and
  buildings (capitalised for SMEDP purposes rent at
  15)
• Machinery and equipment at cost /Leased machinery
  and equipment (capitalised)
• Commercial vehicles (owned and/or leased)
• Research and development (capitalised
• accepted by Receiver of Revenue)

6

• CONDITIONS
• Investment grant for two years on qualifying
  assets
• Additional one year (year three) investment grant
  for the Human Resource Intensity
• Apply before (expansion) or within 180 days
  (establishment) of start of production
• Investment of at least 50
• At least 25 turnover in 1st year and 50 in 2nd
  year must be achieved

7
CALCULATION OF GRANT

• First R5m investment 10 p/a
• R5m to R15m 6 p/a
• R15m to R30m 4 p/a
• R30m to R50m 3 p/a
• R50m to R75m 2 p/a
• R75m to R100m 1 p/a
• Assistance will only be rendered to projects with
  an investment up to R100 million in qualifying
  assets (including expansion)

8
EXPANSION PROJECT

• Existing project should increase investment in
  machinery and equipment (at cost) at least 35
  (25 for BEE), including RD
• Expansion must not result in a reduction of the
  existing workers
• Application must be lodged before start of
  production

9
Tour operatorsPrivate railways, aerial
cablewaysBoats used exclusively for tourists
QUALIFYING ASSETS Similar to Manufacturing
but Owned / leased furniture and equipment
(capitalized) instead of machineryVehicles for
transportation of touristsExpansion Capacity
at least 25 expansion must be demonstrated
TOURISM
10
SKILLS SUPPORT PROGRAMME

• A three year cash grant in respect of the cost of
  training new skills required, resulting from a
  new or expansion project
• A Training Grant
• A Curriculum Development Grant
• A Capital Grant
• 50 of the training cost will be subsidized, up
  to a maximum of 30 of the Annual Wage Bill
• WHO QUALIFIES FOR THE SSP?
• Only investment projects that qualify for the
  SMEDP and SIP may qualify.

11
FOREIGN INVESTMENT GRANT

• TEO offers a cash grant to foreign investors to
  assist them with the cost of transferring NEW
  machinery and equipment from abroad to the site
  in South Africa
• Up to 15 of cost of new machinery and equipment,
  maximum R3m based on accepted transfer costs
• Foreigner must own at least 50 share in the
  South African entity
• Market research report required

12
STRATEGIC INDUSTRIAL PROJECT

• An incentive for strategic projects
• Increase production without substantial
  displacement of existing enterprises
• To qualify
• Commercially viable manufacturing and ICT
  (Information and communication technology).
  Investment in qualifying assets of at least R50
  million

13
QUALIFYING CRITERIA

• Introducing a new process points
• or product 1
• Filling a critical gap in an
• industry cluster 1
• Developing an operation
• with at least 35 value added 1
• Sourcing 10 or 20
• inputs from SMMEs 1 or 2
• Provision of infrastructure 1
• Creating 3, 4, 5 or 6 full time jobs 1, 2,
• per R1 million 3 or 4

14
BLACK BUSINESS SUPPLIERS DEVELOPMENT PGMME

• Financial support (8020) for improving
  competitiveness black-owned and managed
  enterprises (management, employee skills,
  marketing) Max R100k
• Turnover should not exceed R12 million
• Should be operating and trading for more than
  one financial year
• exhibit good growth potential
• comply with the statutory requirements
• registered at SARS

15
COMPETITIVENESS FUND Cost sharing grant scheme
(5050)Provides financial support for improving
the competitiveness of SA firms to improve
performance SECTOR PARTNERSHIP FUND Cost sharing
scheme (6535)Promote collaborative projects to
enhance productivity competitivenessManufacturi
ng, Agro-processing and Information Technology
sectorsAvailable to any partnership of 5 or more
organisations
16
SMEDP etc Neville Goodchild Tel [phone] Fax
012 3942239 Strategic Investment
Programme Francisca Strauss Tel [phone], Fax
012 394 2259 Black Business Development
Programme Gabriel Makhonxa Tel [phone], Fax
012 394 2438 THANK YOU!