Incentives
QBlue Business Development
Incentives
Incentives
Black industrialist Scheme - BIS
The BIS offers a cost-sharing grant ranging from 30% to 50% to approved entities to a maximum of R50 million. The quantum of the grant will depend on the level of black ownership and management control, the economic benefit of the project and the project value
Agro-processing Support Scheme - APSS
The scheme offers a 20% to a 30% cost-sharing grant to a maximum of R20 million over a two-year investment period, with a last claim to be submitted within six months after the final approved milestone.
an additional 10% grant for projects that meet all economic benefit criteria such as employment, transformation, geographic spread and local procurement.
The maximum approved grant may be utilised on a combination of investment costs provided the applicant illustrates a sound business case for the proposed investment activities.
Aquaculture Development and Enhancement Programme - ADEP
ADEP’s contribution is up to 50% (capped at R20m) of qualifying costs for new, upgrading or expanding projects, in:
Machinery, equipment and tools;
Bulk infrastructure (only in water & electrical infrastructure):
Owned land (only applicable to small black enterprises);
Buildings (ponds, cages, tanks, etc.);
Leasehold improvements, capitalised in the balance sheet, where lease agreement is at least 10 years;
Rental costs, (only for small black enterprises), capped at R20 000 per month and claimable at stage two only.
Aquaculture feed, up to a maximum of 10% of total costs, (capped at 20% for small black enterprises)
Commercial vehicles or work boats (owned or capitalised financial lease), not to exceed 50% of total qualifying costs;
Competitiveness improvement activities (e.g. skills development) up to R500 000;
Environmental impact assessments (EIA) and permits authorisation and costs (only for small Black enterprises).
Mentorship (only or small enterprises), up to R200 per hour, 8 hours per day capped at R200 000 per approved project or application.
Automotive Investment Scheme - AIS
The AIS provides for a non-taxable cash grant of twenty percent (20%) of the value of qualifying investment in productive assets and twenty five percent (25%) of the value of qualifying investment in productive assets by component manufactures and tooling companies as approved by the dtic.
An additional non-taxable cash grant of five percent (5%) may be made available for projects that maintain their base year employment figure throughout the incentive period, and achieve at least two of the following economic requirements:
Tooling;
Research and development in South Africa;
Employment creation;
Strengthening of the automotive value chain;
Value addition; and
Empowerment
To qualify for an additional grant of five percent (cumulative 10%), the project must demonstrate the following:
In respect of light motor vehicle manufacturer: a specified increase in unit production per plant ; and
In respect of component manufacturers: a specified increase in turnover and manufacturing of components that are currently not being manufactured in South Africa.