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Mpumalanga Business 2023-24

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The 2023/24 edition of Mpumalanga Business is the 14th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. Introduced by a warm message of welcome to potential investors from the CEO of the Mpumalanga Economic Growth Agency (MEGA), this edition of the journal also contains the official Mpumalanga Investment Prospectus, a comprehensive survey of the province’s assets and the potential of the region. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail, outlining how producers, processors and logistics firms stand to benefit and where there is potential for investment. In addition to the Prospectus, the journal contains a special feature on how the province is leading the field in going green in various projects across several sectors. Sector overviews give up-to-date news on what is going on in the key sectors of the provincial economy, as well as giving a more general view of conditions pertaining to that sector.

SPECIAL FEATURE South

SPECIAL FEATURE South African investment incentives The South African government, particularly the Department of Trade, Industry and Competition, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors. The Provincial Government of Mpumalanga is rolling out infrastructure at the newly-recognised Tourism World Heritage is a popular Site at investment the Barberton sector. Makhonjwa Thebe Tourism Mountains, Group has which invested will Zindoga make a it luxury Trading more hotel attractive and on Projects. the to Skukuza investors. bridge. Credit: The Tony Kruger Ferrar/UNESCO Shalati Development is in the Kruger National Image: Credit: Park. Seda Roger Bosch/Brand SA South Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and develop- ment (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP). MPUMALANGA MPUMALANGA BUSINESS BUSINESS2021/22 2022/23 2023/24 2020/21 28 14 10

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 launched 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 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 design- Many incentives are available to support small Investments businesses and in infrastructure startups. Established can attract businesses rebates. are The encouraged PG Bison Highveld are investing to Industrial support heavily smaller Park in hosts expanding entities factories manufacturing along their different supply Gladtidings capacity. chain. sectors. Credit: Interiors Credit: PG Bison CC. Seda Image: Seda ed 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 Department of Trade, Industry and Competition: www.thedtic.gov.za Industrial Development Corporation: www.idc.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za Official South African government incentive schemes: www.investmentincentives.co.za 29 33 11 15 MPUMALANGA BUSINESS 2023/24 2022/23 2020/21 2021/22

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