Manufacturing Support Programme (MSP)

Incentive offering

It is a reimbursable cost-sharing grant payable in line with approved milestones. The grant is capped at 20% of the investment project value or at 30% if 51% woman/youth and/or persons with disability owned and controlled limited to R10 million.

Mandatory conditions

Please note the below list is not exhaustive.     

• Achieve a minimum B-BBEE Level
  4 contributor status.
• Expansion/ upgrade investments – Maintain and/or create direct employment.
• New projects – Create new employment.
• Demonstrate ≥ 50% input will be sourced from South African (SA) producers and ≥ 10% of inputs will be sourced from black SA producers, government departments, state-owned enterprise or similar government institutions.
• If inputs cannot be locally sourced - Provide indisputable evidence in support.
• Commence with production ≤ 180 days after submission of application.

Eligibility criteria

• Assets can only be brought into commercial use, and competitiveness improvement costs can only be incurred, 30 days after submission of a complete application to the Department of Trade, Industry and Competition.
• Base year employment needs to be maintained throughout the contact.

Qualifying and non-qualifying costs

Qualifying assets and investment costs

Please note the below list is not exhaustive.

• Machinery and equipment, including, green technology, energy and resource efficiency equipment.
• Tools, jigs and dies.
• Raw materials to support exporters (grant limited to R500 000).
• Commercial vehicles linked to production process (grant limited to R1 million).
• Buildings - owned and leasehold improvement investment limited to qualifying machinery and equipment (grant limited to R1 million).
• Competitive improvement costs:
  • Conformity assessments
  • Registration, validation requirements and licensing
  • Information technology systems or technology transfer
  • Process or product or logistics improvements
  • Cleaner production improvements or waste management and/or water usage improvements
  • Energy efficiency improvements or renewable energy.

Non-qualifying criteria

• Land
• Staff wages and salaries
• Vehicles (e.g., sedans, SUVs, 4x4s, people carrier minibuses)
• VAT and finance charges
• Rental, rates and taxes
•  Litigation costs
• Increase in investment costs after submission (exchange rate related)
• Training costs (non-manufacturing operations related).