FAQs
Browse frequently asked questions (FAQs) that relate to some of our Industrial Financing products on the page below. If you are not provided with the answer you are looking for, please free to contact us by filling in the enquiry form here.
Automotive Investment Scheme (AIS)
Component manufacturers and automotive tool manufacturers who have a contract to supply components and/or tooling to the Original Equipment Manufacturers (OEMs) supply chain OEMs that have or can prove they will achieve 50 000 units per plant per annum within 3 years of production.
Second-hand machinery, equipment and tooling would be considered for the grant based on the DTIC appointed Consulting Engineer confirming that this technology is at an acceptable level and that the assets were never incentivised by any of the DTIC incentives and/or programmes administered by the International Trade Administration Commission (ITAC).
A warehouse that is part of the factory for storage of material and finished components would be considered for the incentive. It must be located in the same premises where manufacturing takes place.
A detail of the claiming schedule (claim periods and submission dates) is attached to the approval letter sent to each approved applicant.
Claim periods are as follows:
- First Claim: Start of Commissioning to 1 day prior to Start of Production
- Second Claim: Start of Production + 12 months
- Third Claim: Start of Production + 24 months
All claims have to be submitted within six months after the end of a claim period.
Completed applications should reach the offices of the DTIC no later than 120 days prior to commencement of production for OEMs and 90 days prior to commencement of production for component manufacturers, deemed component manufacturers and /or tooling companies.
- Owned buildings and/or improvements to owned buildings;
- New plant, machinery, equipment and tooling; and
- Second-hand, refurbished and upgraded plant machinery and tooling.
Only assets used in the entity’s South African operations may qualify
Aquaculture Development and Enhancement Programme (ADEP)
The new codes state that “every organ of state and public entity must apply any relevant Codes of Practice issued in terms of the B-BBEE Act as amended when determining criteria for the awarding of incentives …. in support of B-BBEE”; therefore projects must be compliant with those requirements
The scheme emphasises that projects should sustain existing jobs and create new ones as one of its core pillars.
All species are allowed to be farmed except those listed in the Alien and Invasive Species Regulations by the Department of Agriculture, Forestry and Fisheries.
The scheme covers bulk infrastructure costs, which include bulk water and electrification.
Sixty (60) days for applications and thirty (30) days for claims provided all relevant documents have been submitted.
The incentive is a cost sharing grant and not a loan, it is therefore not refundable.
The different permits (i.e. fishing permits/rights, environmental permits, zoning permits, etc.) can be acquired by applying to the relevant department e.g. Department of Agriculture, Forestry and Fisheries, Environmental Affairs, Provincial Departments, Municipalities, etc.
The grant is paid post investment on a reimbursable basis and subject to achieving the relevant stage milestones.
The scheme is not open to people involved in capture fisheries but only those involved in farming or breeding.
Critical Infrastructure Programme (CIP)
The CIP supports the construction of infrastructure that enables the investor to undertake a defined fixed investment; the expansion of existing fixed investment or sustain existing investment.
The applicant must be:
- A registered legal entity in South Africa in terms of the: new Companies Act No.71 of 2008, Close Corporations Act, 1984, Co-operatives Act, 2005 or
- A local government (a municipality).
The incentive programme covers bulk infrastructure such as bulk water supply, electrical infrastructure, access roads etc.
A signed application with all relevant documents is submitted to the dtic, following which an allocated official conducts a site inspection at the applicant’s site. The project is then evaluated and presented to the CIP Adjudication Committee where a decision is made. The process takes an average of 60 working days, provided all relevant documents have been submitted.
Export Marketing and Assistance (EMIA) Scheme
EMIA uses the Harmonised System Codes that are linked to SIC codes. Please go to the dtic website, www.thedti.gov.za and double click on the fifth tab on the left hand side, written “Financial Assistance”, click on EMIA and then on SIC Codes.
According to the EMIA guidelines, all entities accessing the EMIA fund should have traded for more than one financial year irrespective of the annual turnover.
The product should contain at least 35% local content or value addition including raw material and packaging.
Yes, these are allowed provided proof of payment is produced when a claim is submitted and there is a proper paper trail. For example:
- Payment by 3rd Party
- Invoice from 3rd Party to EMIA Client
- Payment by EMIA Client
Trade mission are only applicable to Group Offerings offered by the Trade and Investment South Africa (TISA) division within the dtic. A list of the missions can be obtained from that division.
A list for the National Pavilions is available on the dtic website under EMIA Group Offerings.
If the latest financial statements are not available, a letter signed by the Accounting Officer/Auditor confirming the total number of employees, turnover and the operational assets must be submitted.
Previous, current and projected turnover figures are required for a period of two years.
Yes, provided the applicant will be giving a presentation that will be promoting exports.
No, assistance under PMR is provided to partially compensate exporters for costs incurred in developing new exporting markets and/ or costs incurred in recruiting new Foreign Direct Investment(FDI) into South Africa through personal contact by visiting potential investors in foreign countries.
EMIA grant is not available for local exhibitions. However, EMIA is granted to individual exporters to exhibit products at recognized exhibitions abroad where TISA does not provide for national pavilions.
Only one representative per business will qualify for support.
Applicants of the EMIA-Individual Participation offerings are allowed to use service providers of their choice.
The applicant must inform the dtic two months prior to travel to allow the assistance to be offered to another applicant.
Approval of applications is at the discretion of the dtic and EMIA Adjudication Committee.
