Industrial Development Financial Assistance (Incentives)
Capital Projects Feasibility Programme (CPFP)
The Capital Projects Feasibility Programme (CPFP) is a cost-sharing grant that contributes to the cost of feasibility studies likely to lead to projects that will increase local exports and stimulate the market for South African capital goods and services.
The primary objectives of the programme is to facilitate feasibility studies that are likely to lead to high-impact projects which will stimulate value-adding economic activities in South Africa as this will have greater impact on the country’s industrial policy objectives.
The secondary objectives of the programme include:
- Attracting high levels of domestic and foreign investments;
- Strengthening international competitiveness of South African capital goods sector and allied industries;
- Creating sustainable jobs in South Africa;
- Creating a long-term demand for South African capital goods and services;
- Stimulating project development in Africa and in particular the Southern African Development Community (SADC) countries as well as support for the objectives of the New Partnership for Africa’s Development (Nepad);
- Stimulating upstream and downstream linkages with SMMEs and BEE companies.
The grant is capped at R8 million to a maximum of 50% of the total costs of the feasibility study for projects outside Africa and 55% of the total costs of the feasibility study for projects in Africa.
South African registered legal entity. A foreign entity will only be considered if it partners with a South African registered entity and the application is submitted by the South African entity.
Studies that fulfill the following non-financial criteria will be eligible to apply for a grant through the programme:
- new projects, expansion of existing projects and the rehabilitation of existing projects;
- the programme that is anticipated to emerge from the feasibility study must fulfil the objectives of the programme;
- the minimum local content should be 50% for goods and 70% for professional services which remains at the discretion of the Adjudication Committee;
- projects can be situated anywhere in the world ( excluding South Africa);
- the project must have an adequate chance of being declared a success.
Additional evaluation criteria which can be considered as motivational factors about the project which may result in:
- A positive impact on other developmental aspects including job creation, skills development, linkages with small, medium and micro enterprises etc.
- A minimum of 10% of the total professional services involved during the feasibility study should be sub-contracted to South African black-owned professionals/entities;
- A clear detailed time period within which the project emanating from the feasibility study will be realised;
- Buy-in and other sources of funding from private and public sector organisation(s) to realise the project.