A wide range of fiscal and non-fiscal incentives are available to foreign and domestic South African based companies, investing in sectors and activities that encourage investment in certain targeted sectors of the economy.
Department of Trade and Industry (DTI)
The Department of Trade and Industry administers a wide variety of business incentives. Investment support offered includes:
Black Business Supplier Programme
The Black Business Supplier Development Programme (BBSDP) is an 80:20 cost sharing, cash grant incentive scheme, which offers support to black-owned enterprises in South Africa.
Critical Infrastructure Fund
The Critical Infrastructure Fund (CIF) is a cash grant incentive for projects that are designed to improve critical infrastructure in South Africa. The incentive covers up to 30% of the cost of development costs in qualifying infrastructure.
Foreign Investment Grant
The Foreign Investment Grant (FIG) is a cash incentive scheme for foreign investors who invest in new manufacturing businesses in South Africa. The foreign entrepreneur is compensated for the qualifying costs of moving new machinery and equipment (excluding vehicles) from abroad. The FIG will cover up to 15% of the costs of moving new machinery and equipment, to a maximum amount of R3 000 000 (three million rand) per entity.
Skills Support Programme
The Skills Support Program (SSP) is a cash grant for skills development with the objective of encouraging greater investment in training and creating opportunities for the introduction of new advanced skills.
Small Medium Manufacturing Enterprise Development Programme
A tax free grant under the small and medium enterprise development programme (SMEDP) is available for people planning new projects or the expansion of existing projects in manufacturing, tourism, certain business services, information and communication technology investments, high value agricultural projects, agro- processing, recycling, bio-technology industries, aqua-cultural and cultural industries.
Film Schemes
The Government has introduced a Budget Film and Television Production Rebate Scheme whereby an eligible film owner will receive a rebate totalling 15% for foreign productions or 25% for qualifying South African productions including official co-productions of the qualifying South African production expenditure ("QSAPE") that the film owner has spent on an eligible film production. The objective of the rebate scheme is to provide additional incentive for the production of both foreign and domestic large budget film and television projects in South Africa.
Export Marketing and Investment Assistance (EMIA)
Assistance in the form of a grant is available from the Department of Trade and Industry for specific sectors with a view to develop new export markets. Provisions exist for rebates or claw-back of certain duties applicable to imported goods, raw materials and components used in manufactured exported goods.
These include:
* Primary export marketing research
* Outward selling trade missions
* Inward buying trade missions
* Exhibition costs
* The establishment of export councils for specific industry sectors
* Outward investment recruitment missions
* Inward investment missions
* Foreign direct investment research
Detailed information is available from the http://www.thedti.gov.za/
Customer Contact Centre
Tel: 0861 843 384
International Tel: +27 (12) 394 9500
Fax: 0861 843 888
International Fax: +27 (12) 394 9501
Trade And Investment
South Africa (TISA)
TISA is a service delivery agency working under the umbrella of the Department of Trade and Industry (DTI). TISD combines trade and investment promotion, which enables the DTI to take advantage of the synergy between investment and export. Internationally, TISAs sales and marketing teams operate from around 50 diplomatic offices and provide core market intelligence as well as identifying opportunities and targeting key investors.
A three-pronged investment strategy has been adopted to provide high-level investment performance:
1. The development of Industrial Development Zones (IDZs): Duty free processing zones around coastal or inland ports, for dedicated exporters.
2. The development of special incentive packages: Development of new and more effective incentives to match those being offered by competitor countries.
3. Policy input for the creation of an investor-friendly environment: Active engagement in the policy debate to improve the overall investment climate.
TISA's Customer Care Centre
South African Callers: 0861 843 384
International Callers: +27 (12) 394 9500
The Industrial Development Corporation of South Africa Ltd (IDC)
The Industrial Development Corporation of South Africa Ltd (IDC) is a self -financing, National Development Finance Institution (DFI). The IDC operates in a broad spectrum of industries and are able to offer valid and appropriate financial assistance to a wide variety of individuals and companies in sectors such as agriculture, entrepreneurial mining and jewellery, textiles, techno-industries tourism, and industrial innovation.
Credit facilities are available from the IDC for the exporting of capital goods and services from South Africa.
For further information http://www.idc.co.za/
Durban Investment Promotion Agency (DIPA)
Durban Investment Promotion Agency (DIPA) is an independently managed, local government/private sector partnership, set up to promote Durban as a modern, "go-ahead" business centre, which will attract new business and retain existing business in the Municipality.
DIPA provides first level advice to businesses considering investing in South Africa and Durban.
* General economic information
* Research on specific sectors
* Introduction to key suppliers, financiers & customers
* Local market analysis
* Opportunity identification & development
* Site evaluation & selection
* Business establishment assistance
* Aftercare
Tel: +27 31 336 2540
Fax: +27 31 336 2511
E-mail: info@dipa.co.za
Website: www.dipa.co.za
Trade and Investment KwaZulu-Natal (TIKZN)
Trade and Investment KwaZulu-Natal (TIKZN), the official trade and investment agency of the province of KwaZulu-Natal, is a quasi-government organisation that aims to position the province of KwaZulu-Natal as a premier investment destination and leader in exporting businesses. The organisation is tasked with stimulating trade and actively seeking both foreign and local direct investment. TIKZN identifies and packages investment and export trade opportunities. It provides a comprehensive service to potential investors and expor ters with the understanding that investment decisions are firmly based on rock-solid indicators of economic growth, infrastructural capacity and the availability of resources. TIKZN are committed to solutions-oriented relationships that drive the business of trade and investment.
Services that TIKZN offers investors
* The facilitation of joint ventures and business linkages between small and big business.
* The provision of relevant, reliable information to investors and traders.
* Assistance with applications for investment incentives and export marketing incentives.
* Assistance to foreign investors with applications for work permits.
* Negotiation of local government incentives on behalf of investors.
* Provision of project support and aftercare services.
* Assistance to merging international traders and with international trade enquiries.
* Assisting investors to locate suitable premises and to secure project and operational financing.
