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Trade and Industry Minister, Rob Davies, has officially launched the Manufacturing Competitiveness Enhancement Programme.
Speaking at the launch in Cape Town today, Davies said the incentive programme is one of the key action programmes of the revised Industrial Policy Action Plan.
He says the manufacturing incentive programme will provide enhanced manufacturing support to encourage manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value-addition in the short to medium term.
The following is an extract from the DTI's website.
"The Manufacturing Competitiveness Enhancement Programme (MCEP), one of the key action programmes of the Industrial Policy Action Plan (IPAP) 2012/2013 and 2014/2015, will provide enhanced manufacturing support to encourage manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value-addition in the short to medium term."
"The MCEP comprises two sub-programmes: the Production Incentive (PI) and the Industrial Financing Loan Facilities, which will be managed by the dti and the Industrial Development Corporation respectively."
Production Incentive:
The PI is the largest component of the MCEP (80% by Rand value). Calculation of MCEP credits for the PI for each enterprise will be based between 7% and 15% of the manufacturing value added.
Applicants may apply their credits to a combination of any of the following five sub-components of the PI:
"The Industrial Financing and Loan Facilities comprise two components, namely the Pre- and Post-Dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund."
*The Pre-/Post-Dispatch Working Capital Facility offers a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%.
*Industrial Policy Niche Projects Fund: projects identified by the dti sector desks and the IDC’s Strategic Business Units that focus on new areas with the potential for job creation, diversification of manufacturing output and contribution to exports, and that would otherwise not be candidates for commercial or IDC funding, may be eligible for an MCEP grant that may be structured as part of the borrower’s equity contribution.
