South Africa’s Department of Trade and Industry, DTI, has launched a new programme to boost manufacturing business in the country. The program, Manufacturing Competitiveness Enhancement Programme (MCEP) was launched on as part of the Industrial Policy Action Plan3.

The programme, which will run over a period of six years, aims to help manufacturers upgrade their production facilities in a manner that will sustain employment and maximises value-addition in the short to medium term.

DTI Director for Product Development, Mlungisi Mthimunye, said the MCEP was designed to help the industry advance. “This programme is designed to assist industry so it is quite appreciated to see that industry is here today. The success of this programme would be for us to realise its objectives but we can only do that if industry takes up this benefit that we’re putting forth,” he said.

The programme expands on the distressed facility to SMEs offered by the Industrial Development Corporation. Companies can apply for incentives from June 4, when the department’s online application system will be launched. Applicants must submit a complete application at least 60 calendar days prior to the commencement of commercial use of the activities being applied for.
In the meantime, business can access draft application forms on the department’s website.

According to Mthimunye, the department was looking at making the programme tax free by next year. “The grant, as it is today, is taxable. However, we are involved in a process with South African Revenue Service (SARS) to try to have it as a non-taxable programme. By next March, it will be a non-taxable programme,” Mthimunye said.