Western Cape Regional Office

PRESENTATION

THE ENTERPRISE ORGANISATION

MISSION

1. EXPORT PROMOTION.

2. DTI (TEO) INCENTIVE SCHEMES.

3. DTI “CALL CENTER”

Regional Collaboration

• Joint roadshows/workshops

• Joint forward planning excercises

• Trade Point concept

• City’s program to fund worthy export promotion initiatives.

• Export Councils

Regional Collaboration cont.

• Physically moving 3 together. (TPO)

• Joint database.

• South Cape Business Center

• Role model or benchmark

OBJECTIVES (Exports)

• Preferential access to the EU market (GSP scheme.)

• Assistance with Export Incentive scheme. (EMIA).

• Advice to new exporters

OBJECTIVES (Industrial)

• Raise fixed investment in Western Cape industry.

• Restructure domestic industry towards international competitiveness

• A higher degree of labour absorption

• Promote empowerment

• Reduce investment costs

Exports: Exports: Key SectorsKey Sectors

Eight priority economic sectors:

Chemicals and bio-technology sector

Agro-processing sector

Furniture and jewellery

ICT and electronics sector

Mining and metals beneficiation sector

Transport sector including automotive, vehicle and components sector

The tourism sector

The cultural industries sector (craft, film)

The textiles, clothing and footwear sector

EXPORTS:EXPORTS:What is the EMIA scheme?What is the EMIA scheme?

to partially compensate exporters for certain export marketing costs incurred.

to recruit new foreign direct investment into South Africa

EXPORTS:EXPORTS:Type of assistance GrantedType of assistance Granted

Assistance is granted on the following basis:

Travel - economy class airfares

Daily subsistence allowance

Transport of samples for specific events

Development of marketing materials for specific events

Product registration. eg. Patent registration, quality marks

Cost of setting up and running an exhibition

Cost of brochures

EXPORTS:EXPORTS:

Exhibitions (National Pavilions)Exhibitions (National Pavilions) This scheme applies to exhibitions in which

South Africa participates officially by means of a national pavilion.

Individual ExhibitionsIndividual Exhibitions Assistance is granted to individual exporters to

exhibit products at exhibitions abroad where TISA does not provide for a National Pavilion

Primary Export Market Research (PMR)Primary Export Market Research (PMR) Assistance is provided with certain cost related

to market research.

SMALL MEDIUM ENTERPRISE DEVELOPMENT PROGRAMME

(SMEDP)

Tax free grant based on assets

New ventures and expansions

Maximum qualifying level R100 million

SMEDP - SECTORS:All “manufacturing” and also:

- Tourism- Aqua Culture- High-value agriculture- Bio-technology- Information and Communication Technology- Cultural industries- Agro-processing

SMEDP-TOURISM: QUALIFYING ACTIVITIES

• Short term accommodation. (hotels, B&Bs, Game lodges etc)

• Tour operators, buses, vans.• Funicular railways, private railways,

aerial cable ways• Boats for tourists

SKILLS SUPPORT PROGRAMME (SSP)

• A cash grant for cost of training new skills required for a new or expansion project

WHO QUALIFIES FOR THE SSP?

• Investment projects that qualify for the SMEDP and SIP may qualify

CRITICAL INFRASTRUCTURE PROGRAMME (CIP)

Grant (10 TO 30%)

Local authorities

support certain selected strategic projects to promote economic growth

QUALIFYING ENTITIES

• Any private sector enterprise

• Any Local Government

• Any Public Enterprise

• Partnerships of the above

STRATEGIC INDUSTRIAL PROJECT (SIP)

• A tax incentive to encourage investment in large strategic projects

• Increase production without causing substantial displacement of existing enterprises – market share and jobs

• Long-term commercial viable

COMPETITIVENESS FUND (CF)

• Cost sharing grant scheme

• Improving competitiveness

• Manufacturing and service industries

• Reimburse up to 50% of eligible costs (max of R 600 000)

SECTOR PARTNERSHIP FUND (SPF)

• Same as the CF except:

• Manufacturing, Agro-processing and Information Technology sectors

• Available to any partnership of 5 or more companies

• SPF will fund 65% of costs (max R 1m)

INDUSTRIAL DEVELOPMENT ZONES (IDZ’S)

Industrial park -mainly for exports.

– No duties to be paid

– Near International port or airport

– Normal incentives/grants applicable

DTI - Western Cape Regional Office:Contact Details

• Stefan Pretorius, Regional Manager, Western Cape.

• Vuyo Zitha.• Fax 021 461 9296• E-mail wcape@dti.pwv.gov.zawcape@dti.pwv.gov.za• Tel 021 465 1508Tel 021 465 1508