The Department of Trade, Industry and Competition (DTIC) offers a number of funding mechanisms to stimulate key industries in the South African economy. Are you aware of these DTIC incentives and have you tried to apply for them?
The stated purpose of these DTIC incentives is to:
- Broaden participation in the economy to strengthen economic development.
- Improve alignment between economic policies, plans of the state, its agencies, government’s political and economic objectives and mandate.
- Coordinate the contributions of government departments, state entities and civil society to effect economic development.
- Continually improve the skills and capabilities of the DTIC to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens.
DTIC Funding: Have businesses been successful in applying for funding via the various DTIC incentives?
Our partners from Uzenzele discuss this topic briefly in this video.
According to the 2021, the funding approved via DTIC incentives was as follows:
This is further broken down as follows:
DTIC Funding: What incentives are out there?
While incentives as the Black Industrialist Scheme (BIS) are quite well known, the DTIC also has a variety of other incentives that you may not be aware of.
While 2020 and 2021 was characterized by the COVID-19 lockdowns and support for key industries / sectors, the incentives are broadly broken down into 5 main clusters:
– Manufacturing Investment Cluster
– Innovation Investment Cluster
– Services Investment Cluster
– Infrastructure Investment Cluster
– Export Promotion Incentives
Below we outline the main focus for each of these DTIC Incentive clusters
DTIC Funding: Manufacturing Investment Cluster
This cluster is focused on developing the industrial economy in South Africa and incentivizing industrial businesses. These will be particularly important in a Post COVID-19 world where localization and on-shoring of manufacturing will be key.
Some of the incentives include:
– Automotive Investment Scheme (AIS)
– People Carrier Automotive Investment Scheme
– Black Industrialists Scheme (BIS)
– Agro Processing Support Scheme (APSS)
– Aquaculture Development and Enhancement Programme (ADEP)
– Manufacturing Competitive Enhancement Programme (MCEP)
DTIC Funding: Innovation Investment Cluster
These incentives focus on preparing South Africa for the 4th Industrial Revolution and rewarding technology innovators developing IP rich products and innovations.
Some of these incentives include:
- The Support Program for Industrial Innovation (SPII)
- Technology and Human Resources for Industry Programme (THRIP)
DTIC Funding: Export Promotion
These incentives focus on developing businesses which have the ability to supply global markets and attract much needed foreign income into South Africa.
The 3 core incentives here are:
⁃ The Export Marketing and Investment Allowance
⁃ Sector Specific Assistance Scheme
⁃ Capital Projects Feasibility Programme
DTIC Funding: Services Cluster
These incentives are primarily focused around the call-centre or “Global Business Services” (GBS) market as well as the development of Film and Productions.
The GBS incentive programme was designed to ensure that South Africa offers a globally competitive business case to investors. The GBS incentive programme was implemented from 1 January 2019 to attract investment and create employment opportunities, predominantly for youth in the country, through offshoring activities.
DTIC Funding: Infrastructure Support
These incentives are focused around large scale projects designed to fundamentally change the South African infrastructure landscape.
These include the Special Economic Zones (SEZs) as well as the Critical Infrastructure Programme.
This includes the Capital Projects Feasibility Programme. The CPFP is a reimbursable cost-sharing grant that contributes to the cost of feasibility studies likely to lead to projects that will increase local exports and stimulate the market for South African capital goods and services.
DTIC Funding: Assistance in applying for various DTIC incentives
The various DTIC grants and incentives have many sector specific nuances and technical requirements. If you are planning to apply for any of these and would like an experienced team to work with you, please reach out to us online or contact the office for a consultant to assist.