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BUSINESS OPPORTUNITIES IN THE ENERGY SECTOR WORKSHOP

DEPARTMENT OF TRADE & INDUSTRY

Presentation by : Ms. Nomvula Makgotlho

Date : 23 May 2014

Access to finance

CONTENT PAGE

• Mandate of Department of Trade and Industry (the dti):

o Mission

o Vision

o Strategic Objectives

• Broadening Participation Division:

o Status quo on Women’s Economic Empowerment

o Challenges Facing Women’s Enterprises

• Categories of Financial Incentives available within the dti :

o Women Economic Empowerment Incentive

o IPAP

o Small, Micro and Medium sized Enterprises (SMME) Development Incentives

o Industrial Development-Related Incentives

o Trade, Export and Investment Incentives

• In Closing

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Presentation Outline

MANDATE OF the dti

• Vision of the dti :

o "A dynamic industrial, globally competitive South African economy,

characterised by inclusive growth and development, decent employment

and equity, built on the full potential of all citizens".

the dti ´s mission is to :

o Promote structural transformation, towards a dynamic industrial and

globally competitive economy;

o Provide a predictable, competitive, equitable and socially responsible

environment, conducive to investment, trade and enterprise development;

o Broaden participation in the economy to strengthen economic development;

and

o Continually improve the skills and capabilities of the dti to effectively deliver

on its mandate and respond to the needs of South Africa's economic

citizens. 3

Vision and Mission

STATUS QUO ON WOMEN’S

ECONOMIC EMPOWERMENT

• Since the advent of democracy the economic empowerment and

upliftment of all South African women remains a key priority of our

government, unmistakable from the programmes and policies

implemented through all spheres of government.

• However, women still sadly lagged behind in many respects - they

are still disadvantaged and excluded from participating in the

mainstream economy.

• This was varified by the findings of a Status Quo Report

commissioned by the dti, which identified challenges and made

recommendations.

• These recommendations were instrumental in informing policy and

programme initiatives of the dti towards promotion of women’s economic empowerment.

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Situational Analysis

CHALLENGES FACED BY

WOMEN ENTERPRISES

• The fragmentation of efforts towards women’s economic

empowerment, poor cohesion and coordination between various

governments and private agencies;

• Duplication of resources and unsustainable support for women

enterprises;

• Limited access to finance, information, technology and markets

(domestic and globally);

• Most women operate in the informal sector;

• Limited appropriate skills and training;

• Limited platforms available for advocacy and recognition; and

• Inadequate monitoring and evaluation mechanisms of women’s

information.

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Challenges include:

IPAP 2014/15-

2016/17

Industrial Policy Action Plan

• 5 "Key drivers": infrastructure development; content

localisation; beneficiation; regional integration and

exports; and enhanced industrial financing

• To promote development in aerospace; green

industries; clothing and textiles; agro-processing

and biofuels; chemicals and pharmaceuticals; and

business process services.

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PROGRAMMES IN THE DTI

GENDER AND WOMEN

EMPOWERMENT UNIT

BPD

GWE UNIT

Draft National Strategic Framework on Women’s Economic Empowerment

Technology for

Women In

Business

(TWIB)

South African Women

Entrepreneurs’ Network (SAWEN)

Isivande

Women’s Fund

(IWF)

Market

access

support -

Atlanta

Showroom

Technogirl

entrepreneurs

hip

Programme

Capacity

Building

(B’avumile)

FINANCIAL ASSISTANCE

WITHIN THE DTI

• In an effort to increase industrial competitiveness and broaden the

participation of enterprises in the economy, the dti provides financial

support to qualifying companies in various sectors of the economy.

• Financial support is offered for various economic activities, including

manufacturing, business competitiveness, export development and market

access as well as foreign direct investment.

• the dti has over 20 incentives and categorised into :Women Economic

Empowerment Incentives; Small, Micro - and Medium-sized Enterprises

(SMME) Development Incentives; Industrial Development-Related

Incentives ;and Trade, Export and Investment Incentives.

• Visit the dti website for more information on all incentives, incl. application

forms: www.thedti.gov.za/financial_assistance/financial_assistance.jsp

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the dti incentives

FINANCIAL ASSISTANCE

• Isivande Women’s Fund

o IWF is an exclusive women’s fund established by the dti. The fund

aims at accelerating women’s economic empowerment by providing

more affordable, usable and responsive finance.

o IWF targets formally registered enterprises which are owned

women and or managed (50.1% ordinary share must held by

women; 30 % or more of management positions shall be held by

women). The enterprises must have been existing and operating for

two or more years and must fall within a loan range of R30 000 to

R2 million

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Women Incentive

FINANCIAL ASSISTANCE

• Black Business Supplier Development Programme (BBSDP) o is a cost-sharing grant offered to small black-owned enterprises to assist

them to improve their competitiveness and sustainability in order to become

part of the mainstream economy and create employment. o BBSDP provides a grant to a maximum of R1 000 000 (R800 000 maximum

for tools, machinery and equipment and R200 000 maximum for eligible

enterprises to improve their corporate governance, management,

marketing, productivity and use of modern technology).

• Co-operative Incentive Scheme (CIS) o CIS is a 90:10 matching cash grant for registered primary co-operatives. o The CIS is an incentive for co-operative enterprises in the emerging

economy to acquire competitive business development services, and the

maximum grant that can be offered to one co-operative entity under the

scheme is R350 000.

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SMME Incentives

FINANCIAL ASSISTANCE

• Capital Projects Feasibility Programme (CPFP)

o CPFP is a cost-sharing programme that contributes to the cost of

feasibility studies likely to lead to projects outside South Africa that

will increase local exports and stimulate the market for South

African capital goods and services.

• Manufacturing Competitiveness Enhancement Programme

(MCEP)

o MCEP encourages enterprises to upgrade their production facilities,

processes, products and up-skill workers manner that sustains

employment and maximises value-addition in the short to medium

term.

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Industrial Incentives

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FINANCIAL ASSISTANCE

• Critical Infrastructure Programme (CIP)

o The CIP is a cost-sharing cash grant for projects designed to improve

critical infrastructure in South Africa. The grant covers qualifying

development costs from a minimum of 10% to a maximum of 30% towards

the total development costs of qualifying infrastructure.

• Export Marketing and Investment Assistance (EMIA)

o the dti assists South African exporters by organising platforms to

showcase local products at international trade exhibitions.

o Platforms include: National Pavilions at International Events, International

Trade Exhibition Assistance, Group Outward-Selling Missions, Group

Outward-Investment Missions

Trade Incentives

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IN CLOSING

• An appeal exists for the recognition of the economic empowerment

of women to refrain from being viewed as an issue of only a few

departments and private companies BUT everyone's priority.

• Government has broad policies that require women to be relevant

and responsive in business through aligning themselves to policy

documents that currently govern economic development in South

Africa. These include the National Development Plan (NDP), New

Growth Path (NGP), Industrial Policy Action Plan (IPAP) and

National Infrastructure Plan (NIP).

Going Forward

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Thank you !!