The programme is targeted at the South African industries, enterprises, and suppliers of goods and services to government / parastatals, where the imported content of such goods and services equals to or exceed US$10 million. The first customer of NIP is the South African industry that benefit through the NIP business plans which, when implemented generate new or additional business activities through one or more of the following: investment, export opportunities, job creation, increased local sales, SMME and BEE promotion, R & D and technology transfer. The second customer of NIP is the foreign suppliers who benefit from the programme through increased participation in the South African economy.

In the case of foreign customers, the imported content of the purchase or lease contract for goods and services must equal to or exceeding US$10 million to qualify for participation. In the case of South African industries, participation is dependent on enterprise capability to satisfy the requirements of both the IP programme and the foreign supplier.

The process followed during application includes the following steps:

1. Make contact with the dti
   
2. Submit business concept for consideration and approval by the dti
   
3. Upon approval of business concept, submit detailed business plan outlining the business concept
   
4. Sign the IP Agreement with dti
   
5. Implement the business plan
   
6. Submit bi-annual progress reports on approved business plan
   

The turnaround time for approval of applications is 4 weeks, while the awarding of the programme takes 1 month.

To enquire about the programme, contact The Enterprise and Industry Development Division (EIDD), the dti Customer contact centre: 0861 843 384

A. Yearly NIPP reports

• NIPP Report 2008
• NIPP Report 2007
• NIPP Report 2005/2006
• NIPP Report 2005
• NIPP projects Report 2004
• NIPP projects Report June 2003

B. Related Documents

• Obligation Agreement (PDF)
• Strategic Partnership Agreement (PDF)
• SPD 5 Form - Revised February 2008 (PDF)
• National Industrial Participation Programme - Revised Guidelines - 2008 (PDF)

• Are these agreements available in pre-formatted standard forms, or are the templates merely indicatory, i.e. are they merely intended to provide assistance and or a starting point for negotiations between the parties or must a given agreement be concluded strictly to a standard format ?
• At what point and by whom must an Industrial Participation Proposal be submitted?
• At what point does an IP Obligation arise? I.e. does it arise when a supplier/seller is short listed, awarded a tender, or when an agreement for the supply/sale of goods/services is concluded?
• Briefly, how does IP work?
• Can NIP decisions regarding the imposition of penalties, or the determination, calculation or allocation of credits be appealed?
• Does IP apply to local companies?
• Does sales to SADC qualify for exports credits?
• Does the SBD 5 Form apply to me, as a bidder, and what am I required to do?
• How and by who is the performance of an IP Obligation monitored, evaluated, confirmed, and enforced?
• How are penalties calculated/applied and by whom?
• How do you define an SMME?
• Is it correct to state that there are only two main types of IP Agreements, namely Obligation Agreement and Strategic Partnership Agreement?
• Please explain what is meant by the following paragraph: “Industrial Participation Project must result directly from the purchase contract. The Industrial Participation Proposal would not have been initiated had it not been a condition of the purchase contract and a possible component in the adjudication process. The exception is the Strategic Partnership Agreement (SPA).”
• Please outline the correct process to be followed by potential foreign suppliers of goods/services to the government of RSA or SOE in response to a public tender, and the necessary steps relative to the National Industrial Participation Project:
• Under what Act did IP originate?
• What do we define an investment to be?
• What do we define as a SOE?
• What does causality mean?
• What exchange rate is used to determine the IP obligation value in USD?
• What is envisaged by the statement: “Industrial Participation Project must be economically and operationally sustainable, even after the discharge period”?
• What is regarded as an acceptable performance guarantee? I.e does the dti or the Secretariat have standard wording which it uses? If so, must the standard wording be used? If not, must proposed wording be submitted by a foreign supplier/seller for approval or negotiation?
• What is the definition of imported content?
• What is the difference between a “Business Concept”, “Business Plan”, “Business Proposal” and the “Industrial Participation Proposal”?
• What is the IP Control Committee?
• What is the monetary value of a credit? i.e. how much does a single credit count towards the discharge of an IP Obligation given that the IP Obligation is calculated in US Dollars?
• What is the monetary value of a penalty?
• What is the purpose of concluding an MOU/ST.18 and what does it seek to regulate?
• What percentage of HDIs qualify for ownership credits?
• What types of business projects, activities or undertaking qualify for Industrial Participation Credits and how many credits do they qualify for? Would subcontracting a portion of the services or goods to be provided by a foreign supplier/seller to a local supplier qualify for a credit/s? If so, how would it compare with the credits achievable by other business activities, e.g. concluding a joint venture?
• When can/must a credit application form be lodged and with whom?
• Where can one find information on IP?
• Who decides on type of IP agreement to be signed ?
• Would a project approved under IP qualify for incentives under the MIDP?
• Would an IP project qualify for the SIP incentive?