Manufacturing Support Programme from DTIC

Dear Successful Entrepreneur!

The Manufacturing Support Programme (MSP) is an incentive designed to grow and develop the manufacturing sector through investment in new or expansion manufacturing projects that will, create and sustain employment, encourage transformation and promote localisation.

THE OBJECTIVES WILL BE SUPPORTED THROUGH THE FOLLOWING COMPONENTS OF THE PROGRAMME:

• Competitiveness Improvements

• Green Technology and Resource Efficiency Improvements

• Production Capacity Expansion or New Projects

BENEFITS can be used for

1. CAPITAL EXPENDITURE AND RAW MATERIALS

The MSP offers a reimbursable grant of up to twenty percent (20%) for projects. The maximum grant offering is R10 million over a two-year investment period, with the last claim to be submitted within six (6) months after the final approved milestone.

The DTIC will provide a thirty per cent (30%) reimbursable grant for projects that are fifty-one percent (51%) owned and controlled/managed by Women, youth (s), and/or Persons with Disabilities.

2. COMPETITIVENESS IMPROVEMENTS COSTS

The objective of this benefit is to improve the competitiveness of manufacturers through the improvement of processes, products, quality standards and related skills development, registration and validation requirements and licensing, technology transfer, waste management, energy efficiency and improvement through business development services. The competitiveness improvements grant related to consultant fees may not exceed R1 million.

The applicant must:

• Be a registered legal entity in South Africa in terms of the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended).

• Be compliant with the Broad-Based Black Economic Empowerment Act, 2003 (Act

  No. 56 of 2003) (B-BBEE Act) and Codes of Good Practice on Broad-Based Black

  Economic Empowerment 2019 (Codes of Good Practice). The applicant must achieve a minimum B-BBEE level 4 Contributor status; and submit a valid B-BBEE certificate of compliance or an affidavit at the application and claim stage.

• Be a registered taxpayer in good standing.

• Undertake an expansion or upgrading investment project, which should result in retaining and/or creating direct employment. For new projects, applicants must

  undertake an investment project, which should result in the creation of new

  employment.

• Adhere to sectorial minimum wage and legislative requirements and compliance

  requirements governing the sector.

• Demonstrate that at least 50% of the inputs will be sourced from South African

  producers and at least 10% of the inputs will be sourced from Black South African

  producers in particular and/or Government Departments, State Owned Entities

  (SOEs) or similar Government Institutions.

• Where inputs cannot be produced locally, applicants may source from suppliers

  outside of South Africa. In this regard, full details of establishment points and details of suppliers as well as indisputable evidence of no local supplier must be provided.

• The commencement date of production must take place within 180 days after the

  application has been approved by the dtic.

You will need a business plan and a financial forecast for this grant, you can use this grant in combination with funding from the IDC, NEF or SEFA. If you like to discuss if your venture qualifies for this grant, please set up a consultation with our CEO and Funding Strategist Dagmar Breiling here: https://www.fundingconnection.co.za/book-online

You can also reply to this email and Anne will be able to guide you.

To Your Success

Your Funding Connection Team

Landline: +27 (0)31 761 8677 or Cellphone +27 064 550 7052

Headquarters: 2 Old Main Road, Hillcrest Office Park, Hillcrest, KZN 3610

Satellite Offices: Johannesburg, Benoni, Soweto, Empangeni, Cape Town, Summerset West, Port Elizabeth and more to come