Are you eligible to apply for a lucrative Cash Grant?

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MANUFACTURING COMPETITIVENESS ENHANCEMENT PROGRAMME

Download the MCEP Brochure

The DTI launched the Manufacturing Competitiveness Enhancement Programme (MCEP) on 4 June 2012, effective until 31 March 2018. Applicants can take the form of South African registered Companies, Close Corporations or Co-Operatives.

Components of the MCEP:

1. A Cash Grant calculated as a percentage of the average Manufacturing Value Added (MVA) of the claiming entity. This average MVA value is then capped at between 10% and 25% depending on the Total Assets (at Cost) of the applicant entity.

2. The MCEP may be utilised for any of the following:

Capital Investment Grant*

  • On a cost sharing basis - between 30% and 50% of the cost of qualifying assets can
    be recouped.
  • New Plant & Machinery, Owned Buildings, Leasehold Improvements, Forklifts, Jigs, Tool & Dies
  • Green Technology Upgrade Grant*

  • On a cost sharing basis of between 30% and 50% to achieve cleaner production and improved energy efficiencies
  • *An additional bonus grant of 10% (on the cost sharing) can be claimed where the applicant has total assets above R5m and will be creating a certain minimum additional jobs and or procure at least 50% of Plant & Machinery from South African manufacturing entities.

    Enterprise Level Competitiveness Improvement Grant

  • On a cost sharing basis of between 50% and 70 % to achieve accreditation of conformity and quality standards (i.e. ISO, CE mark)
  • Feasibility Studies Grant

  • On a cost sharing basis of between 50% and 70% in feasibility studies (e.g. Design and EIA costs)
  • The expected investment project to result from the feasibility study should have a minimum value of R30m.
  • Cluster Initiatives Grant

  • On a cost sharing basis of 80% of qualifying project costs to support cluster initiatives to improve competitiveness, innovation and access to new markets.
  • An eligible cluster should be a legal entity / Special Purpose Corporate Vehicle (SPCV) incorporated in SA.
  • Working Capital Facility (Pre / Post-Despatch)

  • A working capital facility of up to R50m at a fixed rate of 4%. This finance is available for a term of up to 4 years and may be revolving. The facility is available on condition that the applicant has a confirmed order / purchasing contract / Orders form part of the State owned Competitiveness Suppliers Programme / The manufactured products are part of a designated products value chain determined by the DTI.
  • Industrial Policy Niche Projects Fund

  • Projects identified by the DTI / IDC that focus on new areas with potential for job creation, diversification of manufacturing output and contribution to exports, that would otherwise not be candidates for commercial or IDC funding, may be eligible for an MCEP grant that may be structured as part of the borrower's equity contribution.
  • Exclusions

  • Automotive; Clothing, Textile, Footwear & Leather (Where project qualifies for either of the AIS / APDP / MIDP or CTCP)
  • New entities are not eligible to apply for the MCEP
  • Qualifying criteria

  • Applicants must achieve a level 4 B-BBEE contributor status – or must submit a plan to demonstrate how they will progress towards achieving a level 4 BB BEE status within a period of 2 Years.
  • As from 1 June 2015 potential applicants who are not at least Level 4 in terms of their B-BBEE status may not apply for MCEP, no plans will be considered after 31/05/2015.
  • Application to be submitted at least 60 days ahead of the relevant intervention being applied for.
  • Contact us should you have any enquiries

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