1998 SOUTHERN AFRICA ECONOMIC ... - National Treasury

S O U TH A F R I C A
INDUSTRIAL FINANCING INCENTIVES
Type A p p l i c a b i l i t y B e n e f i t s
L ow Interest Rate Industrialists with total assets of at least L ow interest rate loan for the first three
Finance fo r ZAR1m (USD 198,500) expanding cap a c i t y years if 60% of sales are intended fo r
E x p o rt Pro m o t i o n to serve export marke t s .This expansion e x p o rt .If 30% to 60% of sales are
should also create employment opport u n i t i e s . e x p o rt e d ,o n ly half the loan will be at the
l ow rate, with the balance being advanced
at the current rate on ord i n a ry IDC loans.
Small Business Limited to entre p reneurs with enterprises P rovision of finance, p remises and training
D eve l o p m e n t
whose gross assets are less than ZAR10m
L o a n s
(about USD 1.99m).
Finance to Improve For manu f a c t u rers who need to improve Finance available at a low interest rate fo r
I n t e r n a t i o n a l their international competitiveness thro u g h t h ree ye a r s .
C o m p e t i t i ve n e s s the acquisition of fixed assets, fo l l owing the
change in tariff protection policy.
Bank Indemnity Small or medium enterprises where Indemnity to banks against 60% of loss.
S c h e m e contribution and collateral must total at M a x i mum of ZAR400,000 (abou t
least 50% of facility granted.
USD 79,400) per client.
Ecotourism Scheme D eve l o p m e n t ,i m p rovement and/or expansion Loans at IDC rates or by risk part i c i p a t i o n.
of tourist accommodation in conserv a t i o n
a reas and national game re s e rve s .
General To u r i s m Institutions which are developing tourist Loans at IDC rates .
S c h e m e accommodation suitable for fo reign tourists. M a x i mum funding of ZAR 10 million (about
USD 1.99 m) per pro j e c t .
Full range of support serv i c e s .
Low Interest Rate Manufacturers expanding capacity to create Loans are granted at 5% below the
Scheme for new employment opportunities. Employment prevailing IDC rate for the first three
Employment must be created at a capital cost not years, and at the normal rate for the
Creation exceeding ZAR 100,000 (about USD 19,850) following years .
per job.
RESEARCH AND DEVELOPMENT INCENTIVES
S u p p o rt Pro g r a m m e All private sector companies in the 50% subsidy on the expenditure incurred in
for Industrial m a nufacturing industry. d eveloping new products and technology .
I n n ov a t i o n M a x i mum of ZAR1m (USD 198,500)
E X P O RT INCENTIVES
E x p o rt Marke t i n g U n d e rtakings re g i s t e red with the Depart m e n t A portion of specified costs relating to
A s s i s t a n c e of Trade and Industry (DTI). e x h i b i t i o n ,m a r ket re s e a rch and travel
re f u n d e d .
E x p o rt Credit and U n d e rtakings re g i s t e red with the DTI. • Fo reign exchange risk cove r: F i n a n c i a l
Fo reign Inve s t m e n t
institutions may offer loans to exporters
R e i n s u r a n c e
of capital goods at a range of fo r w a rd
S c h e m e.
exchange rates instead of a single
p redetermined export exchange rate.
• C o m p e t i t i ve n e s s :Enhanced through a
reduction in the bank lending rate,
enabling the DTI to adjust the USD
denominated re p ayments rates
d ow n w a rd s .
Steel Rebates and E x p o rters of fabricated steel products where Rebates based on the value of export s .
Steel Concessions 25% value has been add e d .
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