EMIA Presentation

12 & 13 August 2009

CONTENT

• Definition of EMIA

• EMIA Structure

• EMIA Offerings (Products)

• EMIA Financial Support

• EMIA Qualifying Criteria

• Important Lead Times

• Master Files

DEFINITION

• EMIA is the abbreviation for Export Marketing and Investment Assistance

• The scheme was designed to partially compensate exporters for costs incurred in their marketing activities abroad

• Provides market assistance to develop new export markets and grow export markets

• Assists with facilitation to grow Foreign Direct Investment into SA

EMIA Scheme

GroupMissions

National Pavilions

TEODonald Mabusela

Tel: (012) 394-1716

TISAChristiaan SaaimanTel: (012) 394-1021

SSAS & CPFP

Individual MissionsPMR & FDI

Individual Exhibitions

EMIA STRUCTURE

EMIA GROUP OFFERINGSGROUP TRADE MISSIONS

Group Outward Selling/Investment MissionsAssistance to SA exporters/companies who wish to make contact with potential buyers/investors with a view to conclude new export orders/recruit foreign direct investment

Group Inward Buying/Investment MissionsAssistance is provided to organisers of inward buying/investment missions to enable prospective buyers/investors to make contact with SA exporters/companies to conclude export orders/attract foreign direct investment

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OBJECTIVES OF GROUP MISSIONS

Export promotion tool:• Introduce local firms to new or existing markets • Gaining entry or strengthening existing networks • Exploit number of Free Trade, Bi-lateral and Multi-lateral agreements• Encourage entry and/or expansion when experience is still limited• First hand experience of market through direct contact• Adjust perception of market potential and increase knowledge• Establishment of networks

NATIONAL PAVILIONS

WHAT IS A NATIONAL PAVILION?

• Participation at a leading International Trade Fair• Sector Focused• Select South African companies to exhibit their Products or Services• the dti procures Space, the Stand and Services (e.g. security, refuse removal, coffee etc.)

• The Aim is to market by: - Business 2 Business Meetings (B2B) - Advertising & Editorials - Media/Public Relations

• Measured Impact - Generate Trade Leads & Export Sales

WHY NATIONAL PAVILIONS?

- To promote the country in general

- To showcase SA Industries

- To promote SA firms to foreign buyers & generate export sales

- Gathering of information (Intelligence)

- Promoting SMME’s / HDI’s

EMIA INDIVIDUAL OFFERINGS

Individual ExhibitionsAssistance is granted to individual SA exporters to exhibit products at recognised exhibitions abroad where the dti does not provide for a national pavilion

PMR and FDI ResearchAssistance is provided to partially compensate exporters for costs incurred in developing new export markets or recruiting new Foreign Direct Investment into South Africa through personal contact by visiting potential buyers/investors in foreign countries

EMIA INDIVIDUAL OFFERINGS (cont)

Individual Inward Buying/Investment MissionsAssistance is provided to South African entities organising inward buying/investment missions to enable a prospective buyer/investor to make contact with them to conclude export orders or attract foreign direct investment

EMIA GENERIC AND PROJECT FUNDING

Sector Specific Assistance-Generic Funding (Export Councils and JAGs) administered by TISA

-Project Funding administered by TEO-Developing industry sectors and new export markets-Broadening the export base

Capital Projects Feasibility ProgrammeThe Fund is a cost-sharing scheme, providing a contribution to the cost of feasibility studies that are likely to lead to projects outside South Africa that will increase local exports and stimulate the market for the South African capital goods and services

FINANCIAL SUPPORT

Assistance is provided on the following basis:• Travel (economy class)• Daily subsistence• Transport of samples for specific events• Development of marketing materials for specific events• Exhibition costs relating to stand rental, stand design,

services and set up costs• Costs of brochures• Project funding (SSAS)• Export Council Operational Funding (SSAS)

WHO QUALIFIES FOR EMIA

– South African manufacturers of products– South African export trading houses /

Commission Agents– South African Export Councils, Industry

Associations and Joint Action Groups.– Provincial Investment Promotion Agencies,

Local and Provincial Government participating in International Trade Initiatives (ITI’s).

DEFINITION OF SMALL, MEDIUM AND MICRO-SIZED

EXPORTERS (SMME’s)

SMME’s must be privately, independently or co-operatively owned and managed, and must comply with any two of the following quantitative criteria:

Annual Turnover less than R40m

Total assets excluding fixed property must be less than R15m

Less than 200 full time employees

DEFINITION OF A HDI

Historically Disadvantaged Individuals

An SMME

At least 51% ownership by black person(s), women or disabled person(s)

Persons must be of a South Africa Nationality

GENERIC CRITERIA FORASSISTANCE

• Export/production performance of the applicant

• Export/marketing competency of the person visiting the foreign country

• Potential or available/accessible production/export product capacity

• Extent of export marketing planning

• Type of products for export and local sales performance

• Industry in which the venture operates

• Membership of an Export Council (not compulsory)

IMPORTANT LEAD TIMES

Important EMIA lead times

Reason for lead time

Group Missions: 2 months

• Processing and facilitation of incomplete applications

• Limited resources

• Fortnightly adjudication meetings

• Air ticket and accommodation prices and availability

• Visas

• Itineraries / Mission Plans: 2 weeks prior to commencement date of Mission

IMPORTANT LEAD TIMES (cont)

Important EMIA lead times

Reason for lead time

National Pavilions: 6 months

• Logistical arrangements (freight, space booking and payment, services, air tickets, accommodation and visas)

• Sufficient number of applications to justify participation

• Fortnightly adjudication

Individual Exhibitions

PMR / FDI

Emerging Exporters

2 months

• Fortnightly adjudication

• Logistical arrangements to be made by individual companies

MASTER FILES

• Efficiency

• Decrease admin burden

• Allowed six applications per year which means six set of documentation

Documents on master file Original, valid Tax Clearance certificate Export registration certificate Incorporation certificate or ID Full colour product brochure Financial Statements Original Credit Order Instruction form with original bank stamp Original cancelled cheque

Contact details

Koos Janse van Rensburg – Deputy Director: National Pavilions012 394-1029KjvRensburg@thedti.gov.za

Corne du Plessis – Deputy Director: Group Trade Missions 012 394-1020CduPlessis@thedti.gov.za

Donald Mabusela – Director: EMIA012 394-1014DMabusela@thedti.gov.za

Call Centre 0861 843 384

EMIA - BRINGING THE WORLD TO YOU

THANK YOU

QUESTIONS?