the dti Incentives
RED TAPE REDUCTION WORKSHOP
26 MARCH 2014
REGENT HOTEL
NOPINKIE BENTSILE
Vision
“A dynamic industrial, globally
competitive South African economy,
characterised by inclusive growth and
development, decent employment and
equity, built on the full potential of all
citizens”.
Mission
the dti’s revised Mission is to:
• Promote structural transformation towards a dynamic
industrial and globally competitive economy.
• Provide a predictable, competitive, equitable and
socially responsible environment for investment, trade
and enterprise development.
• Broaden participation in the economy to strengthen
economic development.
• Continually improve the skills and capabilities of the dti
to effectively deliver on its mandate and respond to the
needs of South Africa’s economic citizens.
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Strategic Goals
•
Facilitate transformation of the economy to promote industrial
development, investment, competitiveness and employment creation
•
Build mutually beneficial regional and global relations to advance South
Africa’s trade, industrial policy and economic development objectives
•
Facilitate broad- based economic participation through targeted
interventions to achieve more inclusive growth
•
Create a fair regulatory environment that enables investment, trade and
enterprise development in an equitable and socially responsible
manner
•
Promote a professional, ethical, dynamic, competitive and customerfocused working environment that ensures effective and efficient
service delivery
the dti Clusters
The work of the dti is organised in terms of the following
clusters:Industrial Development – development of policies & strategies that
promote sector competitiveness, growth, job creation & efficient
administration of support measures
Trade, Investment and Exports - strengthening trade & investment links
with key economies; & fostering African development, including through
regional and continental integration & development co-operation in line with
the New Partnership for African’s Development (NEPAD)
Broadening Participation - developing interventions & strategies that
promote enterprise growth, empowerment & equity
Regulation - development & implementation of coherent, predictable &
transparent regulatory solutions that facilitate easy access to redress and
efficient regulatory services for economic citizens.
Administration and Co-ordination - effective co-ordination of
departmental programmes and provision of necessary support for efficient
implementation.
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INCENTIVE SCHEMES
CLUSTER
INCENTIVE SCHEME
MANUFACTURING
INVESTMENT
• Enterprise Investment Programme (EIP)
• Aquaculture Development and Enhancement Programme
• 12i Tax Incentive
• Automotive Incentive Scheme (AIS)
• People-carrier Automotive Investment Scheme (P-AIS)
COMPETITIVENESS
INVESTMENT
•Manufacturing Competitiveness Enhancement Programme
(MCEP)
• Sector Specific Assistance Scheme (SSAS)
• Export Marketing & Investment Assistance (EMIA)
•Capital Projects Feasibility Programme (CPFP)
SERVICES
INVESTMENT
•Film & Television Production
• Business Process Services (BPS)
BROADENING
PARTICIPATION
• Black Business Supplier Development
Programme (BBSDP)
• Co-operative Incentive Scheme (CIS)
• Incubator Support Programme (ISP)
BROADENING
PARTICIPATION
•Critical Infrastructure Programme
•IDZs and SEZs
MANUFACTURING CLUSTER
PRODUCT
PURPOSE
TARGET
OFFERING
ENTERPRISE
INVESTMENT
PROGRAMME
To attract investment in
the manufacturing sector
Manufacturers with
emphasis on lead sectors.
•30%- 15% grant for
investment in land &
buildings, machinery &
equipment and
customised commercial
vehicles
•15% transportation
costs for machinery &
equipment by FDI
AQUACULTURE
DEVELOPMENT
AND
ENHANCEMENT
PROGRAMME
To stimulate investment
in the aquaculture sector
with the intention to
increase production,
create jobs, encourage
geographical spread and
broaden participation
Primary aquaculture
operations, eg nursery
Secondary aquaculture
operations, eg. Processing
Ancillary aquaculture
operations, eg feed
manufacturing, R&D
40-20% Machinery and
equipment, bulk
infrastructure, land
and/or buildings,
leasehold improvements
and competitiveness
improvement activities
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MANUFACTURING CLUSTER
PRODUCT
PURPOSE
TARGET
INCENTIVE
AUTOMOTIVE
INCENTIVE SCHEME
(AIS )
To attract investment in
light motor vehicles, and
components
manufacturing.
Motor vehicle manufacturers
producing 50,000 units per
plant within 3 years
•Component manufacturers.
20-30% grant for
qualifying investment
in machinery &
equipment and
buildings.
PEOPLE CARRIER
AUTOMOTIVE
INVESTMENT SCHEME
To attract investment in
People carrier
manufacturers /
assemblers and
automotive component
manufacturers
• Vehicle Assemblers for at
least a 10 seater or more
including the driver.
• Component manufactures
who secured markets
locally
and
or
internationally.
• Should achieve at least
25% of turnover or R10m
annually by the end of the
first year
20-30% grant for
qualifying investment
in machinery &
equipment and
buildings.
12i INVESTMENT AND
TRAINING
ALLOWANCE
To promote industrial
upgrading and new
investment in
manufacturing
Medium to large
manufacturers with
investment between R30m
and R1.5bn
• Training allowance:
max R36 000 per
person
• Max 55% of
qualifying investment
costs in machinery
&
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equipment.
Key Achievements for AIS 2012/2013
AIS component manufacturers performance per province
COMPONENTS MANUFACTURERS
No of Projects
Approved
Grant Approved
(R)
Investment Approved
(R)
Projected
Jobs
Sustained Jobs
2011/12
Eastern Cape
32
186 538 754
839 873 851
8 783
1 732
Gauteng
37
283 268 118
1 143 363 653
8 012
2 416
KwaZulu-Natal
13
18 502 509
89 665 806
5 163
159
North West
5
14 017 305
56 423 699
897
59
Western Cape
1
5 008 388
16 694 625
0
100
88
507 335 073
2 146 021 634
22 855
4 466
Total
2012/13
Eastern Cape
11
49 921 600
220 698 494
2 414
145
Gauteng
6
62 811 063
260 870 540
1 583
227
KwaZulu-Natal
6
7 682 175
38 410 873
1 780
120
North West
1
2 804 558
14 022 788
317
50
Western Cape
1
2 460 000
12 300 000
171
40
25
125 679 396
546 302 695
6 265
582
Total
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Key Achievements for AIS 2012/2013
AIS Original Equipment Manufacturers performance per province
ORIGINAL EQUIPMENT MANUFACTURERS
No of Projects
Approved
Grant Approved
(R)
Investment
Approved (R)
Sustained Jobs
Projected
Jobs
2011/12
Eastern Cape
2
59 003 153
261 824 516
2 051
283
Gauteng
1
664 500 315
2 215 001 050
1 668
528
KwaZulu-Natal
3
74 699 373
313 376 703
14 609
79
Grand Total
6
798 202 841
2 790 202 269
18 328
890
2012/13
Eastern Cape
2
260 249 400
1 173 397 598
2 205
110
Gauteng
1
19 721 250
78 885 000
2 050
70
KwaZulu-Natal
1
1 344 279
6 721 396
6 465
5
Grand Total
4
281 314 929
1 259 003 994
10 720
185
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Key Achievements for MIP 2012/2013
12I Provincial approvals 2011/12 and 2012/13
Gauteng:
Eastern Cape:
Western Cape:
2012/13:
4 enterprises (R769 million tax;
R17.2m training allowances; R1.6m
investment)
2011/12:
5 enterprises (R1.4 billion tax ;
R32m training allowances; R4.3b
investment)
2012/13:
2 enterprises (R1.1 billion tax;
R15.2m training allowances; R3.4b
investment)
2011/12:
2 enterprises (R1.45 billion tax;
R8.8m training allowances; R3.9b
investment)
2012/13:
1 enterprise (R121 million tax;
R2.5m training allowances; R220m
investment)
2011/12:
1 enterprise (R67 million tax; R1.2m
training allowances; R147m
investment)
Mpumalanga:
2012/13:
TOTALS:
North West:
2011/12:
2 enterprises (R789.7 million tax;
R4.7m training allowances; R3.1b
investment)
2012/13:
12 (R3.3 billion tax; R50m training
allowances; R10.2b investment)
2011/12:
14 (R4.8 billion tax; R61m training
allowances); R22.4 billion investment
2012/13:
1 enterprise (R550 million tax;
R7.2m training allowances; R2.7b
investment)
2011/12:
No approvals
KwaZulu-Natal
Limpopo:
Free State:
2012/13:
3 enterprises (R342 million tax;
R6.6m training allowances; R943.8
investment
2011/12:
1 enterprise (R57.7 tax; R216 000
training allowances; R105m
investment)
2012/13:
2012/13:
1 enterprise (R429 million tax;
R1.3m training allowances); R1.2b
investment
2011/12:
2 enterprises (R582.7 million tax;
R7.3m training allowances; R9.5b
investment)
No approvals
No approvals
2011/12:
1 enterprises (R441 million tax;
R6.5m training allowances;
R1.4b investment)
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COMPETITIVENESS CLUSTER
PRODUCT
PURPOSE
TARGET
OFFERING
Manufacturing
Competitiveness
Enhancement
Programme (MCEP)
Improve Manufacturing
Competitiveness
South African
Manufacturers and
Services Supporting
Manufacturing
Cost sharing grant for
Capital investment;
Resource efficiency
improvement;
Enterprise-level
competitiveness
improvement;
Feasibility studies;
Cluster competitiveness
improvement;
Pre- and post-dispatch
working capital facility
Export Marketing and
Investment Assistance
(EMIA )
To develop export
market for SA goods and
services and recruit FDI
Export ready
manufacturers and
service providers.
Cost sharing grant for
exhibition costs,
marketing material &
research in foreign
markets
Capital Projects
Feasibility Programme
Promote the export of
South African capital
goods and services
Capital goods sectors
and consulting engineers
Cost sharing grant (max
55%) for feasibility study
costs
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KEY ACHIEVEMENTS FOR MCEP 2012/2013
MCEP PROVINCIAL SPREAD
 Largest MCEP beneficiaries are enterprises based in GP, WC, KZN & EC
 Through the dti satellite offices & partnerships, there are targeted
marketing campaigns in other provinces which resulted in notable
increases.
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KEY ACHIEVEMENTS FOR EMIA 2012/2013
EMIA PROVINCIAL SPREAD (Values in R’000s)
2011/12
2012/13
NW 13
1(%)
LIM 6,
(1%)
FS 6
EC 24 (1%)
(3%)
EC……….R1 982
EC……….R1 554
FS…….….R192
KZN 67
(7%)
FS…….….R266
GAU………R35 630
MPU 40
(4%)
GAU 373
(37%)
WC 334
(39%)
GAU………R27 635
KZN...…….R4 279
GAU 404
(47%)
LIM…..……R436
WC 488
(48%)
EC 26
(2%)
MPU ……R2 281
MPU ……R3 275
NW ..…….R832
FS 5
(0%)
KZN...…….R3 411
WC… .….R23 253
NW 9
(1%)
MPU 31
KZN 57
(3%)
(6%)
NW ..…….R692
WC… .….R20 474
Gauteng, KZN and WC had highest approvals, but
increases in approvals from 2011/12 noted for
Limpopo, Mpumalanga, EC and NW
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EMIA
SSAS
• 2012/2013
425 Enterprises
R31 Million paid out
• 2011/2012
434 Enterprises
R24 Million paid out
CAPITAL PROJECTS
FEASIBILITY STUDY
From 2008/09 to 2012/13 , CFPF
supported a total of 31 feasibility
studies to a total value of R111 million
• 2012/13
R39.5 m value of approved feasibility
studies
R25 million paid out in actual claims to
9 engineering services companies
firms approved to conduct f
• 2011/12
R25 m value of approved feasibility
studies
R15 million paid out in actual claims to
8 engineering services companies
• sibilistudieor potential projects
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 R39.5 m value of approved
feasibility studies
SERVICES CLUSTER
PRODUCT
PURPOSE
TARGET
OFFERING
BUSINESS PROCESS
SERVICES (BPS)
Encourage the creation
of employment
opportunities from the
offshore market
Enterprises offering
Business Process
Services to the offshore
market
A baseline incentive
which offers a 3-year
operational 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 AND TV
PRODUCTION
To grow the film industry
to create jobs and to
transfer skills
Local and foreign film
producers
20% of Qualifying South
African Production
Expenditure (QSAPE)
25-35% of Qualifying
South African Production
Expenditure for local
films
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SERVICES INCENTIVES
BPS
• 12 Projects approved
• R41 Million committed
• R1.2 Billion projected
investment
• 3936 jobs created
FILM & TV PRODUCTION
• 70 Productions approved
• R386 Million committed
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BROADENING CLUSTER
PRODUCT
PURPOSE
TARGET
OFFERING
BLACK BUSINESS
SUPPLIER
DEVELOPMENT
PROGRAMME (BBSDP)
Broader participation of
black-owned SMMEs
through provision of
business development
services
• Majority black owned
entities
• R250k to R35m
turnover
• 1 year trading
• 80:20 cost sharing grant
for business development
services
• 50:50 cost sharing grant
for tools, machinery and
equipment
CO-OPERATIVE
INCENTIVE SCHEME
(CIS)
Broader participation by
promoting the
development of
cooperatives
• Registered co-operative
• Operate in the emerging
sector
• Manufacturing, retail &
services
100% cost sharing grant
for machinery, equipment
& business development
services
INCUBATION SUPPORT
PROGRAMME (ISP)
Encourage private sector
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
•
•
•
•
South African
registered legal entity
Registered higher
education or further
education institution
Licensed and/or
registered science
council
•
•
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
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period.
Key Achievements for BBSDP 2012/2013
BBSDP approvals per province
Gauteng had the largest number and value of approvals
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Key Achievements for CIS 2012/2013
CIS approvals per province
Eastern Cape had the highest number and value of approvals
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Key Achievements for ISP 2012/2013
ISP approvals per province
Gauteng:
Eastern Cape:
5 incubators
4 incubators
R41 262 895
R64 312 275
Western Cape:
Free State:
4 incubators
1 incubator
R36 803 911
R26 252 722
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INFRASTRUCTURE CLUSTER
PRODUCT
PURPOSE
TARGET
OFFERING
CRITICAL
INFRASTRUCTURE
PROGRAMME (CIP)
To leverage strategic
investment projects by
financially supporting
critical infrastructure.
• Transport systems
• Electricity and
distribution systems
• Telecommunications
systems
• Transmission
systems
• Sewage systems
• Waste storage,
disposal and
treatment systems
• Fuel supply systems
•
•
•
30% for direct costs
incurred in demolitiong
and constructing
infrastructure.
Contractors
Municipalities
Public private
partnerships
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CIP KEY ACHIEVEMENTS
2011/2012
06 approved CIP
applications
2012/2013
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CONTACT DETAILS
Website:
www.thedti.gov.za
Government incentives website:
www.investmentincentives.co.za
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