Industrial Development Financial Assistance (Incentives)
The Manufacturing Competitiveness Enhancement Programme (MCEP)
Notice to MCEP Applicants
Please note that with effect from 11 May 2015, all new applications with an investment value of R50 million and above, will no longer be considered under the Manufacturing Competitiveness Enhancement Programme (MCEP) Incentive. Applicants with an investment value of R50 million and above are encouraged to apply for the 12I Tax Allowance Incentive.
Notice to Manufacturing Competitiveness Enhancement Programme (MCEP) clients on the amended guidelines
How to Apply for MCEP
The Manufacturing Competitiveness Enhancement Programme (MCEP) which is one of the key action programmes of the Industrial Policy Action Plan (IPAP) 2012/13 – 2014/15 will provide enhanced manufacturing support aimed at encouraging manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value-addition in the short to medium term.
The MCEP comprises two sub-programmes: the Production Incentive (PI) and the Industrial Financing Loan Facilities which will be managed by the dti and the Industrial Development Corporation respectively.
The Production Incentive is the largest component of the MCEP (80% by Rand value). Calculation of MCEP credits for the Production Incentive for each enterprise will be up to 25% of the manufacturing value added.
Applicants may apply their credits to a combination of any of the following five sub-components of the Production Incentive:
- Capital Investment grant;
- Green Technology and Resource Efficiency Improvement grant;
- Enterprise-Level Competitiveness Improvement grant;
- Feasibility Studies grant; and
- Cluster Interventions grant.
Industrial Financing and Loan Facilities
The Industrial Financing and Loan facilities comprises two components i.e. Pre and post-dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund.
- Pre/Post-dispatch Working Capital Facility offers a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%.
- Industrial Policy Niche Projects Fund: projects identified by the dti sector desks and IDC’s Strategic Business Units that focus on new areas with the 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
For any correspondence regarding the MCEP Incentive please use the following e-mail - MCEP@thedti.gov.zaContacts:
Agro-processing, biofuels, forestry, furniture, timber, paper & pulp
Ms Puleng Botlhole
+27 (12) 394 1207
Advanced manufacturing, metals fabrication, capital, electro-technical and transport equipment
Ms Magdeline Thwala
+27 (12) 394 1089
Non-metallic minerals, chemicals, cosmetics, plastics, pharmaceuticals, printing and green
Mr Sithembile Tantsi
+27 (12) 394 1258