PROSPERYTAL CONSULTANTS
GRANTS

The South African Government utilises the Department of Trade and Industry (DTI) to mobilise its local investment, foreign direct investment and export initiatives. Various Industrial or Manufacturing, Agricultural, Recycling, Tourism, Specific Service and Innovation grants or incentive programmes exist. Prosperytal Consultants offers services to access the major beneficial schemes particular to these industries. Prosperytal Consultants is a founding member of the Government Incentive Consultants Association (GICA). The GICA was founded during 2005 to deal with strenuous implementation concerns regarding various DTI incentive schemes.

Entrepreneurs and business executives are often unaware of or sceptical about the grants or incentives solutions available for new developments, innovations, start-ups and expansions projects. The procedures and qualifying requirements to access these valuable benefits are often perceived to be cumbersome, a lot of “red tape” and strenuous to apply for. Prosperytal Consultants is your solution – our professional advice and experience assures a hassle-free application and smooth claiming process, maximising the benefit, delivering Prosperity for Capital.

Prosperytal Consultants categorises the incentives as follows:

Investment Incentives

The incentives are aimed to encourage investments in South Africa, building capacity, creating job opportunities, expanding the value-adding chain with local resources and recycling of waste products. The DTI offers services to access to small and medium as well as large investment initiatives:

• Small and Medium Initiatives

  • Enterprise Investment Programme (EIP)     Read more... 

There are two programes under the EIP, namely the Manufacturing Investment Programme  (MIP) and the Tourism Support Programme (TSP) . The EIP is a cash, tax free grant.

The MIP is for new investments, major expansion projects or upgrading of existing clothing and textile production facilities. The TSP is for new investments and major expansion projects in the tourism industry. These grants are calculated on a regressive scale to the level of qualifying assets with a maximum level of R200m. 

• Foreign Investment Grant (FIG)

Coexisting to the EIP, the FIG is available to refund relocation costs of plant and equipment shipped to South Africa from abroad, relocation of key personnel and commissioning of the relocated plant and equipment.

• Large initiatives

  • Strategic Industrial Projects (SIP) (The SIP was closed for applications since 31 August 2005)

The SIP is a tax deduction, additional to normal tax deductions, for large projects with qualifying investments of between R50m and R600m. The benefit is capital investment based, calculated at either 50% or 100% of the qualifying project subject to point scoring merits of the project. The benefit is claimed when the project generates taxable income;

Innovation Incentives

• Support Programme for Industrial Innovation (SPII)    Read more... 

SPII promotes technological innovation in the South African manufacturing, service and IT industries. It is administered by the Industrial Development Corporation, due to the technical nature of the innovations, and funded by the DTI. SPII offers three schemes for financial support. They are:

• The Product Process Development Scheme (PPD) which provides financial assistance to small, very small and micro enterprises in the form of a grant. Depending on the BEE status of the enterprise, between 50% and 85% of qualifying costs are subsidised. The maximum amount of the grant is R1 million per project. 

• The Matching Scheme which offers taxable grants from 50% of the actual direct developmental cost with a maximum grant of R3 million per project;

• The Partnership Scheme (large scale R&D) which offers a grant of 50% of the actual direct developmental cost with no maximum grant payment. This scheme has a repayment mechanism in the form of a sales levy;

• The Export Marketing and Investment Assistance program (EMIA)    Read More...

The EMIA program subsidises the registration costs and testing of Intellectual Property (IP) for export products. EMIA is a 50% subsidy of maximum R100 000 per annum;

• The Innovation Fund (IF)

The IF provides up to 100% “subsidy” on innovation projects owned by a consortium of innovators and project managers. Please note: in return for their “subsidy” participation, the IF would take up equity in the project!;

Export Incentives

• The Export Marketing and Investment Assistance program (EMIA)     Read More...

The EMIA program aims to promote exports of South African products and foreign direct investment. Cash subsidies are available for South African exhibitors to exhibit their products on exhibitions abroad, foreign Trade Missions, funds for the formation of formal export councils, funds for export market research and product registration such as PCT and foreign patent registration costs.