Department of Trade, Industry and Competition (DTIC) - Manufacturing Competitiveness Enhancement Programme (MCEP)

This is a cost-sharing incentive designed to promote enterprise competitiveness and job retention in the manufacturing sector. 

The total amount of the grant is based on the size of the company applying and is calculated either as a percentage of their average manufacturing value-added (MVA) over 2 years or, in the case of a company with total assets valued at less than R5 million, as a cost sharing based on the investment they have made.

Please note that with effect from 11 May 2015, all new applications with an investment value of R50 million and above will no longer be considered under the MCEP Incentive. Applicants with an investment value of R50 million and above are encouraged to apply for the 12I Tax Allowance Incentive.

The MCEP provides incentives to build the competitiveness of the manufacturing sector.  

There are two options that can be applied for: 

Production incentive 

This is a cost-sharing incentive (varying between 10% to 25% of the cost) for manufacturing where the total cost of the required investment does not exceed R50 million. The funds are divided into the following areas and most of these have their own application process and investment requirements:

• Capital investment.
  
• Green technology and resource efficiency improvement.
  
• Enterprise-level competitiveness improvement.
  
• Feasibility studies.
  
• Cluster competitiveness improvement.
  

Industrial financing loan facilities 

Projects identified by the DTI sector desks and IDC’s strategic business units that focus on new areas with 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.

• Pre/post-dispatch working capital facility.
  
• Industrial policy niche projects fund.
  

Note: The Working Capital and the Distress Funding Facilities are loan products that will be managed by the IDC.

The incentive grant can be invested in capital equipment for upgrading and expansions; green technology upgrades for cleaner production and resource efficiency activities; enterprise-level competitiveness improvement activities for new or increased market access, product and process improvement and related skills development; as well as conducting feasibility studies.

Application process

Please visit the DTI website to download the application forms and find out how to apply. It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to take into account. Please note that if you are already receiving other government incentives, you may not be eligible to apply for this incentive.