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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