Mpumalanga Business 2017 edition

SPECIAL FEATURE
for example the Aquaculture Development
and Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
Manufacturing
Key components of the incentive programme are
the Manufacturing Incentive Programme (MIP) and
the Manufacturing Competitiveness Enhancement
Programme (MCEP). The initial MCEP, launched in
2012, was so successful that it was oversubscribed
with almost 890 businesses receiving funding. A
second phase of the programme was scheduled
for launch in 2016. The grants are not handouts
as the funding covers a maximum of 50% of the
cost of the investment, with the remainder to be
sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at smaller
companies the maximum grant is R30-million.
Specific tax deductions are permissible for larger
companies investing in the manufacturing sector
under Section 12i of the Income Tax Act.
Other incentives available to investors and existing
businesses in more than one sector include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation
(SPII).
• Black Business Supplier Development Programme
(BBSDP), which is a cost-sharing grant offered to
black-owned small enterprises.
• Critical Infrastructure Programme (CIP) that covers
between 10% and 30% of the total development
costs of qualifying infrastructure.
• Co-operative Incentive Scheme, which is a 90:10
matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can
be applied for by export councils, joint action
groups and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role of
small, medium and micro enterprises in job creation
and a number of incentives are designed to promote
the growth of these businesses. These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp)
Seda is the Small Enterprise Development
Agency, an agency of the Department of Small
Business Development that exists to promote
SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local businesses
that wish to market their businesses internationally
to potential importers and investors. The scheme
offers financial assistance to South Africans travelling
or exhibiting abroad as well as for inbound potential
buyers of South African goods.
ONLINE RESOURCES
Official South African government incentive
schemes: www.investmentincentives.co.za
Department of Trade and Industry:
www.thedti.gov.za
Industrial Development Corporation:
www.idc.co.za
Mpumalanga Economic Growth Agency:
info@mega.gov.za
27 MPUMALANGA BUSINESS 2017