The primary objectives of the Capital Projects Feasibility Programme is to facilitate feasibility studies that are likely to lead to high-impact projects which will stimulate value-adding economic activity in South Africa as this will have greater impact on South Africa’s industrial policy objectives.
The secondary objectives of the Capital Projects Feasibility Programme include:
Attracting high levels of domestic and foreign investments;
Strengthening international competitiveness of South African manufacturing and capital goods sectors;
Creating sustainable jobs in South Africa;
Creating a long-term demand for South African manufacturing and capital goods and services;
Stimulating upstream and downstream linkages with SMMEs; and
Stimulating project development in Africa and in particular, the Southern African Development Community (SADC) countries as well as support for the objectives of the New Partnership for Africa’s Development (Nepad).
The Capital Projects Feasibility Programme provides support to facilitate feasibility studies in the manufacturing and capital goods sectors. The Capital Projects Feasibility Programme makes a contribution in a form of a reimbursable cost-sharing grant payable according to agreed milestones as pre-determined at approval stage by the dti as follows:
50% of the total feasibility study costs for capital projects outside Africa and 55% of total feasibility study costs for capital projects in Africa excluding South Africa.
50% of the total feasibility study costs for manufacturing projects with total assets above R30 million and 70% of the total feasibility study costs for manufacturing projects with total assets below R30 million in South Africa.
The guidelines document provides the criteria to assess applications and the process of applying for the incentive thereof. The guidelines are approved and issued by the Minister of Trade and Industry for the purpose of ensuring clarity on the aim and requirements of the incentives programme. The guidelines will be amended by the dti from time to time, as it deems appropriate.
The approval of the grant is calculated as a percentage of the total cost of the feasibility study and is payable according to completed milestones as pre-determined at approval stage by the dti.
The approval of the feasibility study will be capped to a maximum reimbursable cost-sharing grant of R8 million. The dti’s grant contribution will be capped at five percent (5%) of the cost of the envisaged investment project limited to R8 million.
The applicant is required to inform and request approval from the dti should the agreed milestone dates and/or scope of work change by sending a formal request and a revised schedule of milestones activities.
If the approval is granted, the applicant will receive the approval letter with the Terms and Conditions which need to be accepted, the letter with Terms and Conditions must be signed and returned to the dti within ten (10) working days of deemed receipt. Failure to comply with requirement will render the approved grant to be withdrawn.
The dti, or duly appointed representative, reserves the right to carry out inspections and site visits from time to time, on activities of the approved applicant in addition to technical reviews of project deliverables.