The Strategic Partnership Programme, a sub-programme of the Enterprise Investment Programme (EIP) is to encourage large private sector enterprises in partnership with government to support, nurture and develop SMEs within the partner’s supply chain or sector in order to be manufacturers of goods and suppliers of services in a sustainable manner.
The programme is intended to support Broad-Based Black Economic Empowerment (B-BBEE) policy through encouraging businesses to strengthen the element of Enterprise and Supplier Development (ESD) of the Codes of Good Practice.
The supported strategic-partners are expected to develop and support programmes/ interventions aimed at enhancing the manufacturing and services supply capacity of suppliers with linkages to strategic partner’s supply chains, industries or sectors.
The programme is made available on a cost sharing basis between the government and private sector strategic-partner(s) towards manufacturing projects of SMEs.
The programme offers a cost-sharing grant to a maximum of R15 million towards the total qualifying costs, based on the number of suppliers to be supported (see Section 9.3)
The grant support is available for machinery and equipment, infrastructure, commercial vehicles and business development services necessary to grow enterprises to ensure that within a period of three (3) years1, the SME’s will have developed to be self-sustainable by providing locally manufactured products and/or services relevant to the sector.
Qualifying Costs
The following costs are eligible for support:
- Machinery, equipment and tools
- Infrastructure linked to the strategic partner’s supplier development initiative (owned/ leased buildings, leasehold improvements)
- Product or service development
- Information and Communication Technology (ICT)
- Operational costs
Investment project preparation costs (feasibility studies) will be limited to a maximum of two percent (2%) of the total approved grant amount capped to a maximum cost sharing grant of four hundred and fifty thousand rand (R450 000).
Management fees including travel and accommodation expenses for the strategic partner are limited to three-percent (3%) per annum of the total approved annual grant amount.
The Strategic Partnership Programme Adjudication Committee may consider for support, any other costs related to the activities that support the strategic partnership.
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