FINANCIAL SERVICES - GOVERNMENT GRANTS

The  Department of Trade and Industry offers a wide range of support programmes, of which some are on the basis of non repayable grants while others are in the form of repayable finance schemes. Following below are short descriptions of those programs that Dectra specialises in.

GRANT PROGRAMS

• Enterprise Investment Program (EIP)

  The Department of Trade and Industry has initiated and implemented the EIP an investment incentive to stimulate growth, in line with the South African Government’s National Industrial Policy Framework. Cash grants are offered for investment in new or expanding  capacity. The grant of between 15% and 30% of the cost of assets is payable over two to three years. The grant is tax free and paid into the bank account of the applicant. Application must be lodged at least three months before start of business.

  The program consists of two separate components:

  Manufacturing Investment Program (MIP). This includes all forms of manufacturing or processing. It also includes fruit pack houses.

  Tourism Support Program (TSP). This includes Short term accommodation businesses, Tour operators, Passenger services by Rail, Road and Water, and Cultural Services such as museums and historical sites.

• Small Medium Enterprise Development Program (SMEDP)

  This program was the predecessor of the EIP. It closed during 2006.

• Clothing and Textiles: Production Incentive Program (PI)

  The program aims to assist the industry in its efforts to become more competitive. A cash grant is offered, calculated as a percentage of the applicant’s gross profit. The grant may be used in a variety of ways, e.g. upgrading of production equipment; developing people; improving processes, optimising materials usage and developing new products.

• Export Development: Export Marketing and Investment Assistance Program (EMIA)

  The program aims to improve export performance by subsidising the export promotion efforts of entrepreneurs dealing in goods. Services are excluded. A cash grant based on the cost of travelling, accommodation and participation is paid into the bank account of the applicant. Applications have to be submitted well in advance.

  The program consists of the following components:

  Exhibition assistance. Participation as a private exhibitor or as part of a national pavilion is supported.

  Primary Market Research. Travels abroad as well as international product registration, e.g. patents and trade marks, are subsidised.

  Trade Missions. Private missions as well as missions by organised industry are subsidised, both outward and inward.

• Film and Television production incentives

  This program aims to develop the film industry and attract filmmakers to the country. The grant is calculated as a percentage of the local production expenses and varies between 25% and 35%. Applications have to be submitted before the start of primary shooting. The following programmes are offered:

  Locational Film Production. This is aimed at foreign film producers making films in South Africa.

  SA film production and co-production. This is aimed at South African film producers.

• Product Development : Support Program for Industrial Innovation (SPII)

  The Support Program for Industrial Innovation (SPII) offers a grant of between 50% and 85% to developers of new products. Three schemes exist, catering for projects from small to large in cost. Only expenses incurred after the lodging of an application will be subsidised.

  TAX ALLOWANCES

  A program exists in terms of section 12 (i) of the income tax act and is generally referred to as Industrial Policy Projects (IPP). A tax allowance for manufacturing projects is available to qualifying applicants, based on the cost of the project. The maximum available allowance is R600 million per project.

   

6 Febuary 2012: Dectra buys out Gauteng based competitor.

It is with great excitement that we announce our recent acquisition of the business of Versatex-Invesco in Pretoria.
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