Most of the African governments and government departments are offering grants for those companies, who invest in their country in certain industries and create employment opportunities. These grants may come in the form of subsidised access to loan capital, as a cash grant, which is not repayable or as tax rebates and tax reductions.
The sectors for which grants are available are vast and reach from manufacturing via export to automobile. INTO SA maintains strong bonds to the various authorities and facilitates the access to any grant currently available.
Grant Programmes / Incentives
The following programmes offered in South Africa are just a few, which are currently offering also foreign investors the possibility to reach viability – if not appreciation – by the host country:
Department of Trade and Industry (DTI)
- Agriculture Development and Enhancement Programme (ADEP)
- Automotive Investment Scheme (AIS)
- Manufacturing Investment Programme (MIP) – suspended since 20 September 2013
- Foreign Investment Grant for Import of Production Facilities and Plants (FIG) – suspended since 20 September 2013
- Installation of Solar Energy Generation on Manufacturing Plants (MCEP) – funding exhausted since 14 December 2015
- Clothing and Textile Competitiveness Programme (CTCP)
- Export Marketing and Investment Assistance (EMIA)
South African Revenue Services (SARS)
- Youth Employment Tax Incentive (ETI)
- s12i – Greenfield and Brownfield Investment Tax Rebates
- s12l – Energy Efficiency Tax Incentives
As far as the suspended incentives or the incentives out of funding above are concerned, it is expected that some of them will be reinstated by late April 2016. If you require an update on these developments, please do contact us directly.