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South Africa

List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]

Enterprise Investment Programme (EIP) (manufacturing programme)

  • Investment grants from 15-30% on qualifying assets.
  • Expansion grants on qualifying assets
  • Upgrading projects in the clothing and textile sectors.

Enterprise Investment Programme (EIP) (tourism support programme)

  • Investment grants from 15-30% on qualifying assets.
  • Expansion grants of up to 30%on qualifying assets.

Foreign Investment Grant

  • A cash grant to a maximum of R10 million but the lower of
  • 15% value of new machinery & equipment or
  • Actual relocation cost of of new machinery & equipment.

Critical Infrastructure Programme

  • A cash grant to a Maximum 30% of development cost of qualifying infrastructure

Industrial Development Zone

  • Speedy and easy access to international markets (One stop shop)
  • World class infrastructure
  • Expedited customs procedures
  • Duty free operating environments

Black Business Supplier Development Programme (BBSDP)

  • 20% Entrepreneur
  • 80% dti
  • A cost sharing grant that enables black entrepreneurs to acquire training and mentorship to address skills gap

The Location Film & Television Production Incentive

  • Large Budget Film and Television Production Rebate Scheme whereby an eligible applicant will be rebated a sum maximum of R10 million

The South African Film and Television Production and Co-production Incentive

  • Financial assistance to S .African feature films, telemovies, television drama series, documentaries and animation.

South African Capital Goods Feasibility Study Fund

  • The fund’s contribution is in the form of an advance up to a maximum of 50% of study costs for projects outside Africa and 55% for projects in Africa

BPO & O Investment Incentive

  • The BPO&O Investment Incentive comprises an Investment Grant and a Training Support Grant towards costs of company-specific training. The incentive is offered to local and foreign investors establishing projects that aim primarily to serve offshore clients.
  • The investment grant ranges from R37,000 and R60,000 per seat
  • Training Support Grant towards costs of company-specific training up to a maximum of R12,000 per agent

Competitiveness Improvement Programme

Grants are to be used for the following interventions:

  • Training
  • Labour relations and employee wellness programmes
  • Product related
  • Supply chain integration
  • Industrial engineering
  • Competitiveness improvement
  • Bottom line business processes
  • A 65% grant for companies and a 75% grant for cluster initiatives.
  • Grant support for each company will be limited to a cumulative ceiling of R2.5-million over the five-year period of the programme implementation.
  • Grant support for each approved partnership will be limited to a cumulative ceiling of R25-million over the five-year period of the programme implementation.

Production Incentive (PI)

  • The PI is a market-neutral incentive offered benefit equal to 10% for the year ending March 2011 of a company’s Manufacturing Value Addition (MVA).
Tax exemptions
Property assistance / other fiscal incentiveMore [+]Less [-]

Trade & Investment South Africa provides a service to investors by providing location suggestions, including identifying potential suitable property and site options.

Training and labor market assistanceMore [+]Less [-]
  • The Skills Development Act that obliges all employers to contribute an amount equivalent to 1% of their payroll to an assigned industry controlled Sectoral Education and Training Authority (SETA). Employers who submit a sensible training plan will be eligible to receive back a percentage of their contributions.
  • A National Skills fund has been established and may, in some cases, be accessed to train local people to benefit from new employment opportunities linked to new investments.
  • Black Business Supplier Development Programme (BBSDP) - A cost sharing grant that enables black entrepreneurs to acquire training and mentorship to address skills gap
  • BPO & O Investment Incentive - The BPO&O Investment Incentive comprises an Investment Grant and a Training Support Grant towards costs of company-specific training. The incentive is offered to local and foreign investors establishing projects that aim primarily to serve offshore clients. The investment grant ranges from R37,000 and R60,000 per seat. Training Support Grant towards costs of company-specific training up to a maximum of R12,000 per agent
  • Competitiveness Improvement Programme - Grants are to be used for Training
Loan guarantees, cheap loans or financeMore [+]Less [-]

The Industrial Development Corporation of South Africa Ltd (IDC) is a self-financing, national Development Finance Institution (DFI). The IDC offers financial instruments, including: equity, quasi-equity, commercial debt, wholesale finance, guarantees, export and import finance. The IDC:

  • Provides and arranges funding (e.g. export and import finance, equity and loan funding)
  • Shares project risk with the sponsors and financial partners
  • Structures appropriate limited recourse funding packages by allocating project risk to the appropriate stakeholders
  • The IDC's Public-Private Partnerships Strategic Business Unit (PPP SBU) provides debt and/or equity funding for key infrastructure projects in sectors such as power, water, telecommunications, information technology and transportation
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. Energy Sector
  2. Business Process Outsourcing
  3. Manufacturing and advanced manufacturing
Sectors specific incentivesMore [+]Less [-]

Enterprise Investment Programme (EIP).

  • The EIP (manufacturing) is a cash grant for locally based manufacturers who wish to establish a new production facility, expand an existing facility or upgrade an existing facility in the clothing and textiles sectors.
  • The EIP (tourism) is a cash grant payable over a period of 2-3 years for tourism activities such as:
  • accommodation services
  • passenger transport services
  • tour operators
  • cultural services
  • recreational & entertainment services

Business Process Outsourcing & Offshoring Investment Incentive. (BPO&O) The BPO&O Investment Incentive comprises an Investment Grant and a Training Support Grant towards costs of company-specific training. The incentive is offered to local and foreign investors

Sponsorship

If you are the authorised promotions agency for South Africa and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.