Government Grants in South Africa


The government in South Africa has made great strides in empowering its citizens.Through the department of Trade and Industry, grants are offered to those who need them. Some of these government grants are repayable while others are in form of non repayable finance.Below are some of these grants:

Manufacturing Competitiveness Enhancement Program (MCEP) – Launched during June 2012, this incentive program aims to improve the competitiveness of manufacturing industries as well as to prevent further job losses in that sector. Engineering services companies and accreditation consulting firms may also participate. Cash grants are offered for various types of capital investment.

Enterprise Investment Program (EIP) – The EIP is an investment incentive to stimulate growth, in line with the South African Government’s National Industrial Policy Framework. Cash grants are offered for investment in new or expanding  capacity. The grant is tax free and paid into the bank account of the applicant. Application must be lodged at least three months before start of business.

Clothing and Textiles Production Incentive Program (PI) – The program aims to assist the industry in its efforts to become more competitive. A cash grant is offered, calculated as a percentage of the applicant’s gross profit. The grant may be used in a variety of ways, e.g. upgrading of production equipment; developing people; improving processes, optimising materials usage and developing new products. Retrospective applications are allowed.

Export Marketing and Investment Assistance Program (EMIA) – The program aims to improve export performance by subsidising the export promotion efforts of entrepreneurs dealing in goods. Services are excluded. A cash grant based on the cost of travelling, accommodation and participation is paid into the bank account of the applicant. Applications have to be submitted well in advance.

Film and Television Production Incentives – This program aims to develop the film industry and attract filmmakers to the country. The grant is calculated as a percentage of the local production expenses and varies between 25% and 35%. Applications have to be submitted before the start of primary shooting.

Incubation Support Program(ISP) – The ISP is designed to develop incubators and create successful enterprises with the potential to revitalise communities and strengthen local and national economies. The grant is available to businesses who train entrepreneurs to help improve their competitiveness. Qualifying applicants include commercial operations as well as education institutions and science councils. A wide variety of costs qualify for subsidisation and the subsidy varies between 50% and 60% depending on the size of the applicant. The maximum subsidy is R10m per year for up to three years, but applications for an extension of three more years will be considered.

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