INCENT INCENTIV IVE E PROGRAMM PROGRAMMES ES Atlantis - PowerPoint PPT Presentation

INCENT INCENTIV IVE E PROGRAMM PROGRAMMES ES Atlantis Multipurpose Centre 07 September 2018

CO CONTENTS NTENTS  Introduction and Background  The dti’s Vision and Strategic Objectives  IDAD Mission and Strategic Objective  Incentive Programme Clusters  Broadening Participation Cluster  Competitiveness Cluster  Manufacturing Investment Cluster  Services Investment Cluster  Infrastructure Investment Cluster

IN INTROD TRODUC UCTION TION AN AND D BA BACK CKGROU GROUND D the dti’s 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” Strategic Objectives  Growth of the manufacturing sector to promote industrial development, job creation, investment and exports;  Improved conditions for consumers, artists and opening up of markets for new patent players;  Strengthened capacity to deliver on the dti mandate

INCENTIVE INCENTIV E DEVELOPMENT DEVELOPMENT AND AND ADMI ADMINI NIST STRATIO TION N DIVIS DIVISION ION (IDAD) (IDAD) Mission Strategic Objective To stimulate and facilitate the development of sustainable, Facilitate transformation in the competitive enterprises through economy, to promote industrial efficient provision of effective development, investment, and accessible funding competitiveness and employment mechanisms (i.e. incentive creation. schemes) that support national priorities.

INCENTIVE PROGRAMME CLUSTERS • Strategic Partnership Programme [Replaced Incubation Support Broadening Programme (ISP)] • Support Programme for Industrial Innovation (SPII) Participation • Technology and Human Resources for Industry Programme (THRIP) • Black Industrialists Scheme (BIS) Competitiveness • Export Marketing Investment Assistance (EMIA) Investment • Sector Specific Assistance Scheme (SSAS) • Capital Projects Feasibility Programme (CPFP) • 12I Tax Allowance Programme Manufacturing • Automotive Investment Scheme (AIS) Investment • Aquaculture Development and Enhancement Programme (ADEP) • Agro-Processing Support Scheme Services • Film & TV Production Incentive Investment • Business Process Services (BPS) Infrastructure • Critical Infrastructure Programme (CIP) Investment

BR BROA OADENIN ENING G PARTIC PARTICIPATION IPATION CL CLUSTE USTER R  To broaden economic participation of small enterprises owned by historically disadvantaged individuals including women, youth, and people with disabilities.  To promote economic participation of enterprises from historically disadvantaged communities and marginalised regions into the mainstream economy.

BR BROA OADENIN ENING G PARTIC PARTICIPATION IPATION CL CLUSTE USTER R Incentive Programme Purpose Target / Eligibility Incentive Offering Criteria   Strategic Partnership Encourage partnering with South African 50:50 cost-sharing Programme (SPP) big private sector to registered legal support for large [replaced the Incubator develop suppliers entities with a private sector Support Programme] capability and capacity minimum turnover of investors. thus providing linkages to R100 million for two  Cap = max R15m per the strategic partners consecutive years as financial year over 3 supply chain per the audited years subject to the financial statements availability of funds  At least 60% of the entities being incubated must be at least 51 percent Black owned

BR BROA OADENIN ENING G PARTIC PARTICIPATION IPATION CL CLUSTE USTER R Incentive Programme Purpose Target / Eligibility Criteria Incentive Offering Promote development of  Support Programme South African registered legal  50:50 cost- technologically innovative For Industrial entities. products/processes that sharing support Innovation (SPII) are commercially viable & for large internationally  Registered higher education or competitive further education institution in partnership with private sector.  Licensed and/or registered science councils in partnership with private sector

BR BROA OADENIN ENING G PARTIC PARTICIPATION IPATION CL CLUSTE USTER R Incentive Purpose Target / Eligibility Incentive Offering Programme Criteria   Technology and To increase the number of South African THRIP is a cost-sharing grant Human Resources people with appropriate registered legal of up to R8m per annum for for Industry skills in the development entities. a period (3) years for Programme and management of approved project engaged in  (THRIP) research-based technology Registered higher applied research and for industry. education or further development in science, education institution engineering and technology in partnership with  A maximum grant of THRIP intends to produce private sector. (R500 000) per candidate for highly skilled human transfer of knowledge through resources and technology  Licensed and/or physical relocation of solutions, for improved registered science participants (researchers or industry competitiveness by: councils in technology managers) leveraging collaborative partnership with between the organisations partnerships between private sector involved in the projects (from government and industry the HEI or SETI to the (working with academia) for industrial laboratories and research and development vice versa) for a maximum in science , engineering period of three (3) years in a and technology on a cost- funding cycle. sharing basis.

BR BROA OADENIN ENING G PARTIC PARTICIPATION IPATION CL CLUSTE USTER R Incentive Purpose Target / Eligibility Criteria Incentive Offering Programme   Black Accelerate the quantitative & Be a registered legal entity in Cost sharing grant ranging qualitative increase and South Africa in terms of the from 30% to 50% to approved Industrialist participation of Black Industrialists Companies Act, 1973 (as entities to a maximum of R50 Scheme (BIS) in the national economy, selected amended) or the Companies million. industrial sectors & value chains. Act, 2008 (as amended); the Close Corporations Act, 1984  Quantum of grant depends on: (as amended) or the Co- Create multiple & diverse pathways level of black ownership, operatives Act, 2005 (as and instruments for Black management control and the amended) Industrialists to enter strategic & project value. targeted industrial sectors & value  A Black industrialist is a chains in the short to medium term.  The maximum grant of R50 juristic person that includes million may be utilised for: co-operatives, incorporated Utilise Black Industrialists for in terms of the Companies economic growth, economic Act 2008 (as amended) 1) Capital investment costs; transformation, employment owned by Black South creation and sustainability. Africans as defined by the B- 2) Feasibility studies towards a BBEE Act, who creates and bankable business plan (to the owns value-adding industrial maximum of 3% of projected capacity and provides long- investment project cost); term strategic and operational leadership to a business. 3) Post-investment support (to the maximum of R500 000); and 4) Business Development Services (to the maximum of R2 million)

CO COMPE MPETIT TITIVENESS IVENESS CLUSTE CLUSTER R To create an enabling environment that promotes industrial competitiveness and the growth of South African goods and services in the global economy.

CO COMPE MPETIT TITIVENESS IVENESS CLUSTE CLUSTER R Incentive Programme Purpose Incentive Offering  Export Marketing Aims to develop export Individual Exhibition Return airfare  Investment Assistance markets for South African Participation Subsistence allowance  (EMIA) products / services, thus Transportation of attracting new FDIs into samples  the country. Exhibition costs  Primary Market Research Return airfare  & Foreign Direct Subsistence allowance  Investment (two confirmed Transportation of appointments per day) samples  Patents  Production of marketing material  Individual Inward Missions Return airfare  Subsistence allowance  Car rental

COMPET COMPETITIVENE ITIVENESS SS CLUST CLUSTER ER ( Number and V Number and Value alue of of EMIA Appr EMIA Approvals ovals) ) – M M & & E E

CO COMPE MPETIT TITIVENESS IVENESS CLUSTE CLUSTER R Incentive Programme Purpose Incentive Offering Sector Specific Offer support to projects 80:20 cost-sharing, max R1m for  Assistance Scheme that promote the Local and international air travel;  (SSAS) development of emerging Accommodation;  exporters. Subsistence allowance of R200 per day;  Transportation of samples;  Exhibition costs;  Specialised training (e.g. product development, design colour trends, project management, etc.) Capital Projects Strengthen international Grant of up to 50% of the feasibility study costs for Feasibility Programme competitiveness and projects outside Africa and 55% for projects in Africa. (CPFP) create a long-term demand of South African capital goods sector and allied industries.