South African Investment Incentives
Production Incentive (PI)
The Production Incentive (PI) forms part of the overall Clothing and Textile Competitiveness Programme (CTCP) and flows from the implementation, by the Department of Trade and Industry (the dti), of customised sector programmes (CSPs) for the clothing, textiles, footwear, leather and leather goods industries. The PI Guidelines seek to enable companies to present their business cases to the CTCP Desk of the Industrial Development Corporation (IDC). They also provide a framework for the CTCP Desk to evaluate such cases.
Automotive Investment Scheme (AIS)
The Automotive Investment Scheme (AIS) is an incentive 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. The Minister of Trade and Industry, Dr Rob Davies, approved the AIS Programme Guidelines on 12 May 2010, following consultation with relevant stakeholders in the industry.
Enterprise Investment Programme (EIP)
The Minister of Trade and Industry, Dr Rob Davies (MP), has approved the revised guidelines pertaining to the Enterprise Investment Programme (EIP) and its sub-programmes, the Manufacturing Investment Programme (MIP) and Tourism Support Programme (TSP).
Black Business Supplier Development Programme (BBSDP)
The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black-owned small enterprise to assist them to improve their competitiveness and sustainability in order to become part of the mainstream economy and to create employment. BBSDP provides a grant to a maximum of R1 000 000 (R800 000 will be ring-fenced for tools, machinery and equipment) per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology.
Critical Infrastructure Programme (CIP)
The Critical Infrastructure Programme (CIP) is a non-refundable scheme that covers between 10% and 30% of the total development costs of the qualifying infrastructure. The cash grant is made available to the approved beneficiary upon the completion of the infrastructure project. Infrastructure for which funds are required is deemed to be 'critical': if the investment would not take place without the CIP funding contribution; if the infrastructure projects would be executed without the CIP contribution; if it can be proven that it would be of a smaller scale or lower quality; or it would be established at a later stage than the period than when it was intended.
Business Process Outsourcing and Offshoring (BPO and O)
The Business Process Outsourcing & Off-shoring (BPO&O) investment incentive comprises an Investment Grant ranging between R37 000 and R60 00 per seat and a Training Support Grant towards costs of company specific training up to a maximum of R12 000 per agent. The incentive is offered to local and foreign investors establishing projects that aim primarily to serve offshore clients. The objective of the incentive is to attract BPO&O investments that create employment opportunities. The grant is provided directly to approved projects depending on the value of qualifying investment cost and employment creation.
Sector Specific Assistance Scheme (SSAS)
The Sector Specific Assistance Scheme is a reimbursable 80:20 cost-sharing grant whereby financial support is granted to Export Councils, Joint Action Groups and Industry Associations. The purpose is to enable the funding; in respect of Generic Funding and Project Funding for Emerging Exporters; of non-profit business organisations in sectors and sub-sectors prioritized by the dti.
The Co-operative Incentive Scheme (CIS)
The Co-operative Incentive Scheme (CIS) is a 90:10 matching cash grant for registered primary co-operatives (a primary co-operative consists of five or more members). The CIS is an incentive for cooperative enterprises in the emerging economy to acquire competitive business development services and the maximum grant that can be offered to one co-operative entity under the scheme is R300 000.
Film Production Incentive
The Film Production incentive comprises the Foreign Film and Television Production Incentive which aims to attract foreign-based film productions to shoot on location in South Africa; and the South African Film and Television Production and Co-Production Incentive, which aims to assist local film producers in the production of local content. The Film Production incentive is intended to increase local content generation and improve location competitiveness for filming in South Africa.