|
| SUBSIDIES
AND FINANCE
Offered by the SA Department of
Trade & Industry |
Khula Finance Guarantee
Scheme [CLICK
FOR MORE]
Khula offers assistance to raise finance. Emerging entrepreneurs who cannot
be assisted by commercial banks due solely to a lack of collateral, can
call for a Khula finance guarantee of up to R1 million. Using this guarantee,
the bank would be able to provide the required finance.
EMIA (Export Marketing & Investment Assistance)
[CLICK FOR MORE]
The program aims to promote exports from
SA and foreign investment into SA. Cash grants
are available exhibitions abroad, Trade Missions to countries abroad,
the formation of export councils and product registration such
as international patents and trademarks.
SPII (Support Program for Industrial Innovation)
& PII (Partnership in Industrial Innovation) & PPD
(Product/Process Development)
[CLICK FOR MORE]
A cash grant program. Available i.r.o. cost of developing
innovative new products/processes. A 50% subsidy on all direct development
costs, e.g. staff salaries, materials consumed, consultants, testing,
patenting, etc. Only expenses incurred after submission of a complete
application will be subsidised, to a maximum of R1,5 million.
The SPII grant is not repayable. PII
is a similar program for larger projects, but DTI expects a return, e.g.
a percentage of turnover.
PPD
is for smaller applicants only. It has less stringent qualifying criteria
than the other two.
IDC (Industrial
Development Corporation of SA Limited)
[CLICK FOR MORE]
IDC finances projects on the basis of economic merit, rather than available
collateral. Loans (also bridging loans for large contracts), equity
and quasi equity finance are available for Manufacturing, Agriculture
(e.g. new orchards), Tourism, Fish harvesting, Economic empowerment, Wholesale
financing, small medium scale Mining. Export finance by means
of credit line is also available.
Khula
LREF
(Land Reform Empowerment Facility)
[CLICK
FOR MORE]
OTHER USEFUL SCHEMES
BBSDP
(Black Business Supplier Development Program)
SEDA assists by evaluating manufacturing business and subsidising the
cost of improving them (65% to 90%)
Business Partners Ltd provides loan/equity finance to any type of business,
for expansion as well as replacement.
Sector Partnership Fund provides a 65% subsidy to consortiums with
projects aimed at improving competitiveness.
Innovation Fund provides a 100% subsidy on consortium owned product
development projects.
THRIP offers 50% subsidy on development costs incurred at academic institutions
by private sector firms.
DCCS (Duty credit certificates) Textiles/clothing exporters earn tradeable
import duty credits.
MIDP (Motor industries development program) Similar to DCCS above.
Duty Rebates and draw backs are available in respect of import components
that will be exported.
Compiled by Dectra (Pty) Ltd
-- Last updated 8 November 2006
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