the dti: The Enterprise Organisation

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the dti The Enterprise Organisation 04
November 2008 Ayanda ndinise
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TEO MISSION STATEMENT

• To stimulate and facilitate the development of
  sustainable, competitive enterprises, through the
  efficient provision of effective and accessible
  incentive measures that support national
  priorities.

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PROGRAMMES
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Enterprise Investment Programme1. Manufacturing
Investment Programme

• Aim Increased investment in manufacturing
  sector

Increased Manufacturing Production Capacity
Output
Increased FDI
Outputs
Outcomes
Increased Employment
Sustained Enterprise Growth
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OFFERING

• Investment grant of 15 to 30 in qualifying
  investment costs
• 30 for projects below R5m (small projects)
• 30 - 15 for projects between R5m R30m (medium
  projects)
• 15 for projects above R30m (large projects)
• Investments projects are capped at R200m
• Foreign Investment Grant (FIG)
• It will be the lower of 15 of the value of
  qualifying imported machinery and equipment or
  the actual transport costs of relocating
  qualifying new machinery and equipment from
  abroad to a maximum of R10m.

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QUALIFYING ASSETS

• Machinery and Equipment (owned or capitalised
  financial lease), at cost
• Owned land and buildings at cost
• The investment in land and buildings must
  constitute newly acquired land and buildings,
  whether as part of a new project or expansion,
  and must be owned by the applying entity
• Leased land and buildings
• The cost of leased land is capitalised for the
  five years of the lease. It is calculated at the
  rental cost for year one multiplied by five.
• Commercial Vehicles (owned or capitalised
  financial lease). Only eligible if such vehicles
  have been customised for a particular business,
  e.g. refrigeration.

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TARGET ENTITIES

• Local and foreign owned entities registered in
  RSA
• Companies
• Close Corporations
• Co-ops
• SUBMISSION REQUIREMENTS
• Projects must apply and receive approval prior to
  acquiring investment assets (with the exception
  of projects relocating to RSA).
• Projects will not be considered earlier than 12
  months or less than three (3) months before the
  planned commencement date of production.
• PROGRAMME DURATION
• Effective from 21 July 2008 available for 6
  years until 2014

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2. Tourism Investment Programme

• TARGETED OBJECTIVE
• To stimulate job creation outside the traditional
  destination clusters
• TARGETED OUTCOME
• Increased BB-BEE participation
• Increased Tourism Investment outside of the 3
  metros of eThekwini, Cape Town and Johannesburg.
  Projects locating in marginalised areas within
  these will be eligible to apply.
• ELIGIBILITY CRITERIA
• Create a minimum of 8 jobs, Black owned create a
  minimum 4 jobs
• Achieve level (4) BB-BEE contributor status
  scoring gt65 on BB-BEE scorecard

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Qualifying Activities

• Accommodation services dedicated to tourists
  (e.g. hotels, lodges, resort accommodation, guest
  houses, Bed Breakfasts, backpacker facilities,
  self catering accommodation)
• Passenger transport dedicated to tourists
  including road, rail, water services and must be
  registered in South Africa(e.g., tourist transfer
  services, tourist trains, cruise boats, etc.)
• Tour operators
• Cultural services dedicated to tourists (e.g.
  privately owned museums,)
• Recreation services dedicated to tourists (e.g.
  spa and wellness centres sport and recreation
  facilities that form part of other dedicated
  tourism products, etc.)

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Non- Qualifying
Activities

• Fast food and take away restaurants, nightclubs,
  bars, gaming and gambling venues will not be
  considered
• Franchised restaurants
• Restaurants not attached to a tourism facility
• Conference facilities not attached to
  accommodation facilities
• No retail operations will be considered.

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BLACK
BUSINESS SUPPLIER DEVELOPMENT PROGRAMME

• 8020 cost-sharing incentive intended to
• Improve core competencies
• Upgrade managerial capabilities
• Restructure black business processes
• for enterprises to become more competitive.

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Who Qualifies?

• Majority of shares must be black owned
• Management team must be predominantly Black
• Must have a turnover not exceeding R12m
• Must be operating and trading for more than one
  financial year
• Must exhibit good growth potential
• Should comply with commercial regulations e.g.
  SARS and CIPRO registrations
• If registered for less than 12 months, must show
  proof of trading history and vat registration

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COOPERATIVES INCENTIVE SCHEME

• A MAXIMUM GRANT OF R300 000 PER CO-OPERATIVE
• for once-off or multiple projects
• OBJECTIVES
• To promote co-operatives as a high potential
  business form
• To improve the viability and competitiveness of
  co-operatives
• To assist co-operatives to acquire start-up
  requirements
• To build the initial asset base for emerging
  co-operatives
• To support broad-based black economic empowerment

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Incentive Benefit

• It is a cost sharing grant
• 9010 cost sharing
• 90 contribution from the dti
• 10 contribution from the cooperative (monetary
  or skills, assets)

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PROJECT FUNDING FOR EMERGING EXPORTERS

• To offer support to projects that promote the
  development of emerging exporters.

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Nature of Projects

• Funding will benefit projects that
• Develop export markets
• Broaden the export base
• Stimulate the participation of SMMEs, HDIs,
  women and physically challenged in international
  trade

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Incentive Benefit

• 100 of the cost of the approved project
• Local and International air travel
• Accommodation
• Transportation of samples
• Exhibition space.
• SMMEs/HDIs contribute a commitment fee of R750
  for local events and R1500 for international
  events

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Eligible Entities

• Export Councils
• Industry Associations
• Provincial Investment and Economic Development
  Agencies
• Business Chambers
• SEDA

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Application Procedure

• Submit an application 3 months prior to
  commencement date of the event.
• Submit
• Project/Business Plan
• Quotations (travel, accommodation, freight
  exhibition costs)

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Qualifying Criteria

• Participants
• Enterprises should be in operation for more than
  12 months
• Comply with statutory requirements registration
  with SARS for tax clearance certificate export
  registration with customs excise register with
  CIPRO
• Participate in a structured Export Development
  Programme
• Not exported in the past

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CONTd..

• Project must be short-term in nature, not more
  than 10 days
• Assistance is limited to entrepreneurs only
  (excludes staff and consultants)
• A minimum of 5 to a maximum of 20 entrepreneurs
• Focuses on exhibitions and missions
  participation.

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• Contact Centre- 0861 843 384
• www.thedti.gov.za
• andinise_at_thedti.gov.za
• Tel [phone]
• Fax [phone]
• -ENDS-