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Manufacturing
South Africa’s manufacturers can access multiple incentive programs and loans to upgrade facilities, improve competitiveness, and expand capacity.
For example, the dtic offers grants like the Manufacturing Support Programme (MSP) which promotes factory modernization and localization, as well as sector-specific schemes for automotive, clothing and textiles (via the Competitiveness Improvement Programmes), and more. IDC provides industrial finance across sub-sectors (chemicals, metals, machinery, etc.), often taking equity in large manufacturing ventures or extending loans for new production lines. Manufacturers can also benefit from Critical Infrastructure Program (CIP) grants to develop supporting infrastructure like factory buildings, power and water supply.
Available Funds for the manufacturing sector
Black Industrialists Scheme (BIS)
The Black Industrialists Scheme (BIS) is a targeted financial and non-financial incentive programme that supports black-owned and black-managed manufacturing enterprises to invest and scale in strategic South African industrial sectors. The scheme provides a cost-sharing grant of 30% to 50% of qualifying costs, up to a maximum of R50 million, depending on the level of black ownership, management control, economic benefit of the project, and project value.
Economic Distress Programme
The MCEP Economic Distress Programme (EDP) provides concessionary debt funding to manufacturing companies that are financially distressed and have adopted bankable turnaround strategies. Funding covers working capital and plant and equipment needs, at 0% for the first 18 months and 2.5% per annum thereafter.
Economic Job Creation Support (EJCS)
The MCEP – Economic Job Creation and Support (EJCS) programme provides concessionary debt funding at 0% interest to manufacturing companies that create jobs. It offers two sub-facilities: a Working Capital Facility and a Plant & Equipment Facility, each with distinct qualifying criteria.
Export Competitiveness Support Programme
The Export Competitiveness Support Programme is a targeted concessionary funding facility under the Industrial Development Corporation’s Manufacturing Competitiveness Enhancement Programme (MCEP). It is designed to support South African manufacturers exporting to the United States who have been negatively impacted by increased import tariffs.
Furniture Fund
The NEF Furniture Fund is a R50-million initiative, approved by the Department of Trade, Industry and Competition (dtic), providing business loans of up to R5 million to black-owned furniture manufacturers to stimulate growth, create jobs, and reduce import reliance in South Africa’s furniture sector.
Furniture Industry Challenge Fund (FICF)
The Furniture Industry Challenge Fund (FICF) is a blended IDC and MCEP (Manufacturing Competitiveness Enhancement Programme) fund designed to support qualifying South African furniture manufacturers.
Manufacturing Support Programme (MSP)
The Manufacturing Support Programme (MSP) is a dtic incentive designed to grow and develop South Africa’s manufacturing sector by supporting new or expansion manufacturing projects. It offers a reimbursable grant of up to 20% (or 30% for qualifying transformation-owned businesses) of capital expenditure and raw material costs, with a maximum grant of R10 million over two years.
Manufacturing Support Programme (MSP)
The MCEP Manufacturing Support Programme (MSP) is an IDC concessionary loan facility under the Manufacturing Competitiveness Enhancement Programme that provides blended finance to South African manufacturers. It offers two separate facilities — a Working Capital Facility and a Plant & Equipment Facility — both priced at a fixed rate of 2.5%.
Plant and Equipment Facility
The Plant and Equipment Facility is a sub-fund of the IDC’s Manufacturing Competitiveness Enhancement Programme (MCEP) Main Fund, exclusively available to Black Industrialists (businesses with at least 51% black ownership). It provides concessionary loan finance for the acquisition of plant and equipment to help qualifying manufacturers start, expand, or make expansionary acquisitions.
Strategic Partnership Programme (SPP)
The Strategic Partnership Programme (SPP) is a dtic initiative that supports large private sector enterprises partnering with government to develop and grow SMEs within their supply chains. The programme provides a cost-sharing grant towards infrastructure and business development services needed to mentor and grow qualifying SME suppliers.
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