Neville Goodchild Gauteng Regional Office +27(0) THE ENTERPRISE ORGANISATION

PRODUCTS Small Medium Enterprise Development Programme (SMEDP) Skills Support Programme (SSP) Foreign Investment Grant Strategic Industrial Projects Critical Infrastructure Facility Industrial Development Zones Black Business Supplier Development Programme (BBSDP) Support Programme for Industrial Innovation

SMALL MEDIUM ENTERPRISE DEVELOPMENT PROGRAMME PROMOTION OF INVESTMENT IN FIXED ASSETS IN NEW MANUFACTURING, TOURISM AND AQUACULTURE ACTIVITIES AND IN THE EXPANSION OF EXISTING ACTIVITIES Max qualifying investmentR100m Manufacturing,Tourism, ICT, Aquaculture, Agro-processing, International Call Centres

TYPES OF ENTITTIES THAT QUALIFY Incorporated entities (Pvt and Public) Close Corporation Sole Proprietors Co-operatives Partnerships MINIMUM EQUITY 10% (5% for BEE) for projects with qualifying fixed assets up to R5 million 25% (15% for BEE) for projects with qualifying fixed assets of R5 million or more

QUALIFYING ASSETS: MANUFACTURING Land and buildings at cost /Rented land and buildings (capitalised for SMEDP purposes rent at 15%) Machinery and equipment at cost /Leased machinery and equipment (capitalised) Commercial vehicles (owned and/or leased) Research and development (capitalised & accepted by Receiver of Revenue)

CONDITIONS Investment grant for two years on qualifying assets Additional one year (year three) investment grant for the Human Resource Intensity Apply before (expansion) or within 180 days (establishment) of start of production Investment of at least 50% At least 25% turnover in 1 st year and 50% in 2 nd year must be achieved

CALCULATION OF GRANT First R5m investment 10% p/a R5m to R15m6% p/a R15m to R30m4% p/a R30m to R50m3% p/a R50m to R75m2% p/a R75m to R100m1% p/a Assistance will only be rendered to projects with an investment up to R100 million in qualifying assets (including expansion)

EXPANSION PROJECT Existing project should increase investment in machinery and equipment (at cost) at least 35% (25% for BEE), including R&D Expansion must not result in a reduction of the existing workers Application must be lodged before start of production

Tour operators Private railways, aerial cableways Boats used exclusively for tourists QUALIFYING ASSETS Similar to Manufacturing but Owned / leased furniture and equipment (capitalized) instead of machinery Vehicles for transportation of tourists Expansion: Capacity at least 25% expansion must be demonstrated TOURISM

SKILLS SUPPORT PROGRAMME A three year cash grant in respect of the cost of training new skills required, resulting from a new or expansion project: A Training Grant A Curriculum Development Grant A Capital Grant 50% of the training cost will be subsidized, up to a maximum of 30% of the Annual Wage Bill WHO QUALIFIES FOR THE SSP? Only investment projects that qualify for the SMEDP and SIP may qualify.

FOREIGN INVESTMENT GRANT TEO offers a cash grant to foreign investors to assist them with the cost of transferring NEW machinery and equipment from abroad to the site in South Africa Up to 15% of cost of new machinery and equipment, maximum R3m based on accepted transfer costs Foreigner must own at least 50% share in the South African entity Market research report required

STRATEGIC INDUSTRIAL PROJECT An incentive for strategic projects Increase production without substantial displacement of existing enterprises To qualify: Commercially viable manufacturing and ICT (Information and communication technology). Investment in qualifying assets of at least R50 million

QUALIFYING CRITERIA Introducing a new processpoints or product 1 Filling a critical gap in an industry cluster1 Developing an operation with at least 35% value added1 Sourcing 10% or 20% inputs from SMME’s1 or 2 Provision of infrastructure1 Creating 3, 4, 5 or 6 full time jobs1, 2, per R1 million 3 or 4

BLACK BUSINESS SUPPLIERS DEVELOPMENT PGMME Financial support (80:20) for improving competitiveness black-owned and managed enterprises (management, employee skills, marketing) Max R100k Turnover should not exceed R12 million Should be operating and trading for more than one financial year exhibit good growth potential comply with the statutory requirements registered at SARS

COMPETITIVENESS FUND Cost sharing grant scheme (50:50) Provides financial support for improving the competitiveness of SA firms to improve performance SECTOR PARTNERSHIP FUND Cost sharing scheme (65:35) Promote collaborative projects to enhance productivity & competitiveness Manufacturing, Agro-processing and Information Technology sectors Available to any partnership of 5 or more organisations

SMEDP etc Neville Goodchild Tel Fax Strategic Investment Programme Francisca Strauss Tel , Fax Black Business Development Programme Gabriel Makhonxa Tel , Fax THANK YOU!