The DTI has launched a new incentive scheme called the Manufacturing Competitiveness Enhancement Programme (MCEP). The objective of the incentive is to promote enterprise competitiveness and job retention.
Components of the MCEP: 1. A non-taxable cash grant calculated as a percentage of the average (calculated over two years and based on audited or independently reviewed accounts not older than 18 months) Manufacturing Value Addition (Sales less Material Input Costs) of a business and capped at between 7% and 15% (Total company size dependant – Total Assets per Balance Sheet). -Total Assets less than R5m OR 100% hist. disadvantaged Owned – 15% MVA -Total Assets R5m – less than R30m – 12% MVA -Total Assets R30m – less than R200m – 10% MVA -Total Assets R200m or more – 7% MVA
2. The applicant will have 2 years to utilize the MCEP grant.
3. Entities may qualify for the MCEP more than once.
4. The MCEP can be utilized for any of the following: -Capital Investment Grant (equipment upgrading or expansions). -Green Technology Upgrade Grant -Enterprise Level Competitiveness Improvement Grant -Feasibility Studies Grant -Working Capital Facility (Pre / Post-Dispatch)
5. Qualifying criteria -registered company in South Africa – Applicants must achieve a level 4 B-BBEE contributor status – or must submit a plan to demonstrate how they will progress towards achieving a level 4 BB BEE status within a period of 4 Years.