industrial finance
Industrial Financing?
the dtic plays an important role in facilitating and supporting the growth of private investment and thus jobs and industrial output. One of the ways in which this is done, is through Industrial Finance. This is usually provided in instances where normal market mechanisms are not sufficient to enable the development of local businesses.
the dtic stimulates and facilitates the development of sustainable, competitive enterprises through the provision of incentive programmes that support national priorities (i.e. Reimagined Industrial Strategy). The department provides financial support to qualifying companies for various economic activities, including manufacturing, business competitiveness, export development and market access, as well as foreign direct investment.
It is important to note that all incentive schemes on offer by the dtic have their own specific guidelines and qualifying criteria, which have to be met, prior to financial support being extended to such qualifying companies.
Financial products categories generally mirror the stages involved in project development:
- Conceptualisation of the project, including feasibility studies and research and development
- Capital expenditure, involving the creation or expansion of the productive capacity of businesses
- Competitiveness enhancement, involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors
Manufacturing incentives catalyse additional economic activity, supporting the broader participation in the mainstream economy.
The key focus is to assist businesses owned by individuals from historically disadvantaged communities and marginalised regions.
The innovation cluster supports pioneering technology with its application attempting to improve the status quo of the South African industries either through producing better products for current market needs, delivering faster and more efficient processes or just providing more effective solutions to current industry problems.
The service investment cluster is aimed at encouraging increased investment and job creation in the services sector.
