Aquaculture Development and Enhancement Programme (ADEP)
Description
The Aquaculture Development and Enhancement Programme (ADEP) is an incentive programme available to South African registered entities engaged in primary, secondary and ancillary aquaculture activities in both marine and freshwater classified under SIC 132 (fish hatcheries and fish farms) and SIC 301 and 3012 (production, processing and preserving of aquaculture fish). The grant is provided directly to approved applications for new, upgrading or expansion projects.
The programme offers a reimbursable cost-sharing grant of up to a maximum of R40 million qualifying costs in machinery and equipment; bulk infrastructure; owned land and/or buildings; leasehold improvements; and competitiveness improvement activities as outlined in section 8 of the ADEP guidelines.
Objectives
The objective of the ADEP is to stimulate investment in the aquaculture sector with the intention to:
Increase production;
Sustain and create jobs;
Encourage geographical spread; and
Broaden participation.
Benefits
The ADEP offers a reimbursable cost-sharing grant of up to a maximum of R40 million qualifying costs in:
Machinery and equipment(owned or capitalised financial lease);
Bulk infrastructure;
Owned land and/or buildings;
Leasehold improvements;
Competitiveness improvement activities and
Commercial vehicles and work boats (owned or capitalised financial lease).
Eligible Enterprises
Primary Aquaculture Operations
Brood stock operations;
Seed production operations;
Juvenile (spat, fry, fingerling) operations, including hatchery and nursery facilities;
On-growing operations, including but not limited to rafts, net closures, net pens, cages, tanks raceways and ponds.
Secondary Aquaculture Operations
Primary processing for aquaculture (post-harvest handling, eviscerating, packing, quick freezing);
Secondary processing for aquaculture (filleting, portioning, packaging);
Tertiary processing for aquaculture (value adding: such as curing, brining, smoking, further value adding such as terrines, roulades, pates, paters);
Waste stream handling for aquaculture (extraction of fish oils, protein beneficiation, organic fertilizers, pet feeds, animal feeds).
Ancillary Aquaculture Operations
Aquaculture feed manufacturing operations;
Research and Development projects related to aquaculture;
Privately-owned aquaculture veterinary services (farm inspections, disease surveillance and control, histopathological analysis, etc. specifically for the aquaculture industry).
ADEP Policies
DATE APPROVED: 14 August 2013: Adjudication Committee approved the policy that projects be granted an incentive payment and disbursement period based on their investment spread as:
(i) Projects with a proposed one year investment are granted an incentive and disbursement over two six monthly periods
(ii) Projects with a proposed two year investment are granted an incentive payment and disbursement over four six monthly periods.
Automotive Investment Scheme (AIS)
The Automotive Investment Scheme (AIS) is an incentive designed to grow and develop the automotive sector through investment in new and/ or replacement models and components that will increase plant production volumes, sustain employment and/ or strengthen the automotive value chain.
Objectives of incentive scheme
Strengthen and diversify the sector through investment in a new and/or replacement models and components.
Increase plant production volumes.
Sustain employment and/or strengthen the automotive value chain.
Benefits
The AIS provides for a non-taxable cash grant of twenty percent (20%) of the value of qualifying investment in productive assets and twenty five percent (25%) of the value of qualifying investment in productive assets by component manufactures and tooling companies as approved bythe dti.
An additional non-taxable cash grant of five percent (5%) may be made available for projects that maintain their base year employment figure throughout the incentive period, and achieve at least two of the following economic requirements:
Tooling;
Research and development in South Africa;
Employment creation;
Strengthening of the automotive value chain;
Value addition; and Empowerment
To qualify for an additional grant of five percent (cumulative 10%), the project must demonstrate the following:
In respect of light motor vehicle manufacturer: a specified increase in unit production per plant ; and
In respect of component manufacturers: a specified increase in turnover and manufacturing of components that are currently not being manufactured in South Africa.
Eligible Enterprises
Light motor vehicle manufacturers that have achieved, or can demonstrate that they will achieve, a minimum of 50 000 annual units of production per plant, within a period of three (3) years; or
Component or deemed component manufacturers that are part of the Original Equipment Manufacturer (OEM) supply chain; or
Will achieve at least 25% of total entity turnover or R10 million by the end of the first full year of commercial production as part of a light motor vehicle manufacturer supply chain, locally and / or internationally.
Light Motor Vehicle Manufacturers
Should have achieved or can demonstrate that it will achieve, within three years, a minimum of 50 000 annual units of production per plant.
Should demonstrate that it will achieve within three years a minimum of 50 000 annual units of production per plant.
Component Manufacturers or Deemed Component Manufacturers
A component manufacturer that can prove that a contract is in place and/or a contract has been awarded and/or a letter of intent has been received for the manufacture of components to supply into the light motor vehicle manufacturer supply chain locally and/or internationally;
A component manufacturer that can prove that after this investment it will achieve at least 25% of total entity turnover or R10m annually by the end of the first full year of commercial production, as part of a light motor vehicle manufacturer supply chain locally and/or internationally.
Competitiveness Improvement Costs for Component Manufacturers, Deemed component Manufacturers and Tooling Companies
The objective of this benefit is to improvethe competitiveness of component manufacturers through the improvement of processes, products, quality standards and related skills development through the use of business development services.
The grant will be limited to the competitiveness improvement costs incurred within the first three years after the start of production date and a total grant amount of R1 million per entity per three year cycle.
Declaration by Consultant and Applicant
Automotive Investment Scheme(Components or Deemed Component Manufacturer) Application Form
Automotive Investment Scheme (Light Motor Vehicle Manufacturer) Application Form
Clothing and Textile Competitiveness Improvement Programme (CTCIP)
The Clothing and Textile Competitiveness Improvement Programme (CTCIP) aims to build capacity among manufacturers and in other areas of the apparel value chain in South Africa, to enable them to effectively supply their customers and compete on a global scale. Such competitiveness encompasses issues of cost, quality, flexibility, reliability, adaptability and the capability to innovate.
Schedule of applicable terms
Clothing and Textile Competitiveness Improvement Programme
Clothing and Textile Competitiveness Improvement Programme (CTCIP)
The Clothing and Textile Competitiveness Improvement Programme (CTCIP) aims to build capacity among manufacturers and in other areas of the apparel value chain in South Africa, to enable them to effectively supply their customers and compete on a global scale. Such competitiveness encompasses issues of cost, quality, flexibility, reliability, adaptability and the capability to innovate.
The Manufacturing Competitiveness Enhancement Programme (MCEP)
Notice to Manufacturing Competitiveness Enhancement Programme (MCEP) clients on the amended guidelines
Programme Guidelines
Cluster Competitiveness Improvement
Version 1–January 2014
Production Incentive Grants
Industrial Financing Loan Facilities
Version 4-April 2014
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.
Production Incentive
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
Schedule of applicable terms
Clothing and Textile Competitiveness Improvement Programme
The Manufacturing Competitiveness Enhancement Programme (MCEP)
Notice to Manufacturing Competitiveness Enhancement Programme (MCEP) clients on the amended guidelines
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