The Department of Trade and Industry (dti) has
reopened applications for the Manufacturing Competitiveness
Enhancement Programme (MCEP).
“The current reflows of the industrial financing loan facility
allow for a reopening of another window for pre- and
post-dispatch working capital loans, limited to R50 million for
each qualifying manufacturer at a fixed rate of 4% per annum.
“In addition, the facility will provide funding of up to R50
million for plant and equipment to all qualifying start-up and
existing black industrialist businesses at the same rate which
is payable over a period of 84 months,” dti Minister Rob Davies
said recently.
The programme, which was suspended in October 2015, includes a
package of incentives specifically designed for established
manufacturers with the aim of promoting competitiveness and
retaining jobs.
The programme was suspended due to the large number of
applications far exceeding the funds set aside for the programme.
Over R5 billion that was originally set aside for this MCEP was
fully committed.
The MCEP was designed as an instrument to support enterprises in
the production sectors of the economy soon after the onset of
the global economic recession to weather adverse market
conditions.
This was also to secure higher levels of investment, raise
competitiveness and retain employment.
The programme consists of the Production Incentive, which is
administered by the Incentive Development and Administration
Division and the Industrial Financing Loan Facility administered
by the Industrial Development Corporation (IDC).
The Production Incentive was temporarily suspended in October
2015.
The MCEP supported 1 153 entities to the value of R7,2 billion
with acquisition of capital equipment and reengineering of
business processes to improve their competitiveness under the
Production Incentive, of which R4,1 billion has already been
disbursed.
The programme leveraged approximately R30,8 billion in
private-sector investment and retained over 200 000 jobs across
all priority sectors.
The Industrial Financing Loan Facility which is administered by
IDC, approved working capital loans to the value of R988 million
of which 78% has been disbursed. A total of 1 553 jobs have been
saved and 7 933 jobs have been created through this facility.
Companies can access the programme online at http://www.investmentincentives.co.za/MCEP through
the IDC website.
Meanwhile, the department is continuing discussions with
National Treasury for additional investment support for the
manufacturing sector. – Source: www.SAnews.gov.za |