AEROTROPOLIS RAIL CLUSTER DEVELOPMENT AND INVESTMENT MAKING BEST USE OF FISCAL INCENTIVES 17/18 NOVEMBER 2015

Manufacturing Competitiveness Enhancement Programme Black Business Supplier Development Programme Research & Development Incentives Automotive Production Development Programmer Manufacturing Competitiveness Enhancement Programme Section 12l – Additional Tax Allowance Critical Infrastructure Programme Research & Development Incentives Automotive Production Development Programmer Section 12l – Additional Tax Allowance Critical Infrastructure Programme Incubation Support Programme Research & Development Incentives Automotive Production Development Programmer 17/18 NOVEMBER 2015 VALUE CHAIN SPECIAL ECONOMIC ZONE & MCEP CLUSTER MAJOR SUPPLIE R TIER 1 SUPPLIE R TIER 2 SUPPLIE R

Encourage private sector partnerships with Government on a cost-sharing basis to develop SMMEs and nurture them into sustainable enterprises that can provide employment and contribute to economic growth. Provides funding for incubators that over time can generate revenue through the provision of services and initiatives that can be self-sustainable within a period of 2 to 3 years. The grant approval is capped at a maximum of R10 million (VAT inclusive) per financial year over a 3 year period and is subject to the availability of funds. The ISP offers a cost-sharing support of 50:50 for large businesses and a cost-sharing of 40:60 for SMMEs. After the 3 year period, applicants may apply again. 17/18 NOVEMBER 2015 INCUBATION SUPPORT PROGRAMME The ISP is one of the support measures to encourage partnerships in which big business assists SMMEs with skills transfer, enterprise development, supplier development and marketing opportunities. Potential benefit: Cost- sharing grant of R10 million per year for three years Business Advisory Services Coaching and mentoring Training Facilitation of funding Production efficiency and improvement Quality and standards acquisition Market access Machinery, equipment and tools Infrastructure linked to the incubator (buildings and furniture) Feasibility studies for establishing and/or expanding the incubator Product and service development ICT and operational costs QUALIFYING COSTS

All members must have decision making powers either by virtue of being Directors and/or voting members of the NPC. Eligible projects should be aimed at assisting efforts to improve productivity and competitiveness of member companies. Projects may not be general purpose in nature. Qualifying costs include: Cost of developing shared infrastructure; and Process improvement costs External costs – not salaries and wages 17/18 NOVEMBER 2015 MCEP CLUSTER Support to cluster and partnerships of films, engineering services and conformity assessment service in the manufacturing industry to define and implement collaborative projects related to production and and marketing that will enhance productivity and competitiveness 5 or more entities Excluding export counciils, industry associations, governments funded entities and trusts Each cliuster member must contribute 10% 80:20 cost sharing grant Salaries, wages, rent and general office costs are non- qualifying Limited to R50 million per cluster project

17/18 NOVEMBER 2015 JOBS FUND Objectives of the Jobs Fund To co-finance projects by public, private and non-governmental organisations that will significantly contribute to job creation. Funding interventions will seek to overcome barriers to job creation that have been identified. o Some of these relate to demand for labour, some to the supply of labour and some to the broader institutional environment. The Jobs Fund has been designed specifically to overcome these barriers by providing public funding through four “funding windows” Enterprise Development; o Initiatives which leverage existing private sector capacity, experience and resources to facilitate job creation Infrastructure Investment; o Light infrastructure investments which will unlock investment and activity linked to additional job creation Support for Work Seekers and o Innovative approaches to training and job placement which enables jobs for unemployed work seekers. Institutional Capacity Building. o Institutional strengthening and capacity building of entities that underpin the effective operation of SA’s labour market and employment facilitation entities.

17/18 NOVEMBER 2015 CIP Cash incentive of between 10% and 30% of qualifying infrastructure cost. Aimed at supporting investors to undertake a defined fixed investment, or expansion of existing investment and is available to manufacturing and mining sector. Minimum investment Mandatory requirementsOther requirements BEE level required Maximum incentive Application submission requirements Greenfield / Brownfield None Connection to a new investment or expansion project; Score at least 50 points for the Economic Benefit Criteria Infrastructure must be critical Industrial parks allowed Renewable energy projects allowed (60% sourced locally) Level 4 - mandatory requirement R30 million Must apply before start of construction of infrastructure. To be safe, apply at least 3 months prior to start of construction. CriterionDescriptionMax points B-BBEE Compliance Requirements BEE scoring of more than 65 (level 4 or more)25 Priority Sectors Sectors as identified in IPAP 2; Projects in: Mineral Beneficiation Industries; Agricultural and Construction Investments and other labour absorbing sectors 20 Investment Value Investment Value – Total capital investment excluding infrastructure investment 30 Location Projects in Special Economic Zones (SEZ’s): Industrial parks; Urban Renewal Development Nodes; Rural Development Nodes; Business Incubators and land for agricultural activities or in any other area deemed to be economically depressed 25 TOTAL100 Total Points ScoredCIP Funding 50 – 5910% 60 – 6915% 70 – 7920% % 90 – 10030%

17/18 NOVEMBER 2015 QUESTIONS