Programme: Manufacturing Competitiveness Enhancement Programme MCEP
Organisation: Department of Trade and Industry and the IDC
Type of Support
Programme Description
A cost sharing grant of up to R30 million is available under this programme. The amount awarded varies according to the investments made by the organisations. Bonuses are offered for new additional jobs that have been created.
Clusters are offered an 80% cost sharing grant of up to R50million (payable at the completion of the business development activities)
MCEAP is split into 2 sub programmes as follows:
1. Production Incentive Grants (administered by the Dti), which have the following subcomponents:
Grants are offered as a percentage of Manufacturing Value Added (MVA).
The grant will be capped according to the applicant’s enterprise size as follows:
Applicants with total assets that have a historical cost below R5 million, may qualify for a direct cost sharing grant per applicable component, and MVA calculation will not be applicable in this case.
Grant application for applicants with total assets that have a historical cost of R5 million and above will be based on the qualifying MVA calculation as follows:
Applicants with 100% Black shareholding may qualify for 25% of MVA
Applicants with total assets with a historical cost of at least R5 million but less than R30 million may qualify for 25% of MVA
Applicants with total assets that have a historical cost of at least R30 million but less than R200 million may qualify for 20 % MVA
Applicants with total assets that have a historical cost of R200 and above may qualify for 10% MVA.
Target Market
Registered organisations that are at least BBBEE level 4 contributors in any of these areas:
a) Agro-processing, bio fuels, forestry, furniture, timber, paper & pulp
b)Advanced manufacturing, metals fabrication, capital, electro-technical and transport equipment
c) Non-metallic minerals, chemicals, cosmetics, plastics, pharmaceuticals, printing and green industries
Engineering services companies
Application Conditions
Applicants must not be receiving any other financial assistance, and not charging import parity pricing
They must have been in operation for a period of not less than one year.
An organisation may not reduce its employment levels from the average employment levels for a 12 month period prior to the date of application, and these employment levels should be maintained for the duration of the incentive agreement.
Those applying as clusters must form a non profit organisation and make the application as such.
Cluster members must make at least a10% financial contribution towards the project.
Application Process
Applications have to be done online on: http://www.thedti.gov.za/mcep_applications.jsp
Success Stories
Contact Details
For assistance with online applications, contact:
Jamela Nkabinde
Telephone: 012 394 5814
Email: jnkabinde@thedti.gov.za
Mmakopa Makwela
Telephone: 012 394 5815
E-mail: mmakwela@thedti.gov.za
For any queries related to the IDC:
Email mcep@idc.co.za
Programme enquiries:
a)Ms Puleng Botlhole
Telephone: 012 394 1207
Email: Pbotlhole@thedti.gov.za
b) Ms Magdeline Thwala
Telephone: 012 394 1089
Email: mthwala@thedti.gov.za
c) Mr Sithembile Tantsi tsithembile@thedti.gov.za
Telephone: 012 394 1258
Email: tsithembile@thedti.gov.za
Organisation: Department of Trade and Industry and the IDC
Type of Support
- Industrial financing loan facilities managed by the IDC; and
- Production incentive grants administered by the Department of Trade and Industry.
Programme Description
A cost sharing grant of up to R30 million is available under this programme. The amount awarded varies according to the investments made by the organisations. Bonuses are offered for new additional jobs that have been created.
Clusters are offered an 80% cost sharing grant of up to R50million (payable at the completion of the business development activities)
MCEAP is split into 2 sub programmes as follows:
1. Production Incentive Grants (administered by the Dti), which have the following subcomponents:
- Capital Investment
- Green Technology and resource efficiency improvement
- Enterprise level competitiveness improvement
- Feasibility studies
- Cluster competitiveness Improvement
- Pre /post dispatch working capital facility offering a maximum of R30 million for up to 4 years.
- Industrial policy niche projects fund
- The working capital and distress funding facilities
Grants are offered as a percentage of Manufacturing Value Added (MVA).
The grant will be capped according to the applicant’s enterprise size as follows:
Applicants with total assets that have a historical cost below R5 million, may qualify for a direct cost sharing grant per applicable component, and MVA calculation will not be applicable in this case.
Grant application for applicants with total assets that have a historical cost of R5 million and above will be based on the qualifying MVA calculation as follows:
Applicants with 100% Black shareholding may qualify for 25% of MVA
Applicants with total assets with a historical cost of at least R5 million but less than R30 million may qualify for 25% of MVA
Applicants with total assets that have a historical cost of at least R30 million but less than R200 million may qualify for 20 % MVA
Applicants with total assets that have a historical cost of R200 and above may qualify for 10% MVA.
Target Market
Registered organisations that are at least BBBEE level 4 contributors in any of these areas:
a) Agro-processing, bio fuels, forestry, furniture, timber, paper & pulp
b)Advanced manufacturing, metals fabrication, capital, electro-technical and transport equipment
c) Non-metallic minerals, chemicals, cosmetics, plastics, pharmaceuticals, printing and green industries
Engineering services companies
Application Conditions
Applicants must not be receiving any other financial assistance, and not charging import parity pricing
They must have been in operation for a period of not less than one year.
An organisation may not reduce its employment levels from the average employment levels for a 12 month period prior to the date of application, and these employment levels should be maintained for the duration of the incentive agreement.
Those applying as clusters must form a non profit organisation and make the application as such.
Cluster members must make at least a10% financial contribution towards the project.
Application Process
Applications have to be done online on: http://www.thedti.gov.za/mcep_applications.jsp
Success Stories
- ETVAAL Furniture is a 45 year old furniture manufacturing company situated in Bronkhorstpruit, Mpumalanga, that is owned by Thys Louwrens. The company received the Dti grant, as well an IDC loan and as a result of this, they extended their facilities and purchased new equipment. They are now entering new markets after having previously only focused on manufacturing school furniture. They have been able to employ an additional 40 people and look forward to doubling their turnover over the next 5 years.
- Family owned Deckel Sportslids is a manufacturer of mud flaps, boot spoilers and canopies for the automotive industry, which is run by Dr Quintin Immelman. With the help of the Dti and the IDC, they were able to purchase machinery and moulds for a more efficient canopy production method. This has resulted in a high quality product and increased production yields.
- Freddy Motau, owner Reba Chemicals which manufactures industrial chemicals used the R493 000 that he received from the Dti to complete his production facilities and the purchase of machinery. They have increased production capacity and increased numbers of employees. The company is set to increase sales and take more employees once the project is fully functional.
Contact Details
For assistance with online applications, contact:
Jamela Nkabinde
Telephone: 012 394 5814
Email: jnkabinde@thedti.gov.za
Mmakopa Makwela
Telephone: 012 394 5815
E-mail: mmakwela@thedti.gov.za
For any queries related to the IDC:
Email mcep@idc.co.za
Programme enquiries:
a)Ms Puleng Botlhole
Telephone: 012 394 1207
Email: Pbotlhole@thedti.gov.za
b) Ms Magdeline Thwala
Telephone: 012 394 1089
Email: mthwala@thedti.gov.za
c) Mr Sithembile Tantsi tsithembile@thedti.gov.za
Telephone: 012 394 1258
Email: tsithembile@thedti.gov.za
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