The Department of Trade and Industry (DTI) has launched a new incentive scheme called the Manufacturing Competitiveness Enhancement Programme (MCEP). The objective of the incentive is to promote enterprise competitiveness and job retention.

If your Manufacturing company is planning to invest in the following expansion activities i.e New Plant and building improvements, as well as tooling, you may very well qualify for this exciting grant. You could recieve a non repayable grant rebate of up to 50% of your capital investment.

*The MCEP is available to South African-registered entities engaged in manufacturing.

*Only Existing Entities may apply, with a financial record of at least one (1) year.

*The Entity must be a taxpayer in good standing (valid Tax Clearance Certificate).

*Applicants must achieve at least level four B-BBBE codes of good practice.

*South African registered companies (including co-operatives) engaged in manufacturing (SIC 3), engineering services that support manufacturing and comformity assessment agencies (SIC 88220) servicing the manufacturing sector.

A cash grant which is calculated as a percentage of the average Manufacturing Value Addition / MVA (Sales less Material Input Costs). The average is calculculated over a two year period and based on audited or independently reviewed accounts not older than 18 months. The grant is limited to between 10% and 25% of the MVA (Total company size dependant - Total Assets per the Balance Sheet).

* Total Assets less than R 5m -MVA not applicable - 50% cost sharing on Capital expenditure

* Total Assets of R5m but less than R 30m - 25% of MVA

* Total Assets of R30m but less than R 200m - 20% of MVA

* Total Assets of R200m or more - 10% of MVA

Submit an e-application (no manual application) at lease 60 days prior to start of commercial production or undertaking business development activities applied for.

Capital Investment Grant

* Equipment upgrading and expansions, includes: new machinery and equipment, building improvements and extensions to existing buildings
* Forklifts
* Tools, Jigs & Dies

(Maximum CAP 5million - 30million)

Green Technology Upgrading Grant
* Cleaner Production technology (air compressing, pumping and steam systems, building improvements e.g lighting efficienty)
* Waste management (Technology for recycling, re-use of waste and recovery from waste or other beneficial use of waste)
* Energy efficiency (new improved processes, solar panels, pumps, motors, building improvements)
* Water usage (improvement technology, industrial water and waste water treatment )
* Localization of renewable energy products
* Private laboratories(setting up, installing and upgrading laboratory equipment)

(Maximum CAP 5million - 20million)

Enterprise Level Competitiveness Improvement Grant

To achieve accreditation of conformity and quality standards. e.g. ISO, CE mark
* Process improvements
* Product Improvements
* Logistic Improvements
* Skills Development

(Maximum CAP 2million - 10million)

Bonus Grant - 10%

* May be available to applicants whose historical asset cost exceeds R5 million.

Procurement Requirements
* Procure at least 50% of the total project budget in machinery, equipment and tooling manufactured in South Africa.

Required Documentation
1. Copy of Company Registration
2. Copy of shareholding Certificates
3. Copy of ID's of Members/Shareholders and Directors
4. Documentation proving compliances with BB BEE Code of Good Conducts
5. Valid Tax Clearance Certificates
6. Audited Annual Financial Statements for the last 3 years
7. Comfirmation of employment of current number of employees