Strategic Partnership Programme (SPP)

What is the Strategic Partnership Programme (SPP)?

The Department of Trade and Industry (the dti) initiated the Strategic Partnership Programme (SPP) 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.

Strategic Partnership Programme (SPP).

The main objective of the programme:

  • The objective of SPP to encourage large private sector enterprises in partnership with Government to support, nurture and develop SMEs within the partner’s supply chain or sector to be manufacturers of goods and suppliers of services in a sustainable manner.
  • The intention of the programme is to support Broad-Based Black Economic Empowerment (B-BBEE) policy through encouraging businesses to strengthen the element of Enter and Supplier Development (ESD) of the Codes of Good Practice.
  • SPP will be available on a cost-sharing basis between Government and the strategic partner(s). It is available for infrastructure and business development services necessary to mentor and grow enterprises.

The strategic partner can either be:

  • A South African registered legal entity in terms of the Companies Act, 1973 (as amended) or the Companies Act, 2008 (as amended); the Close Corporation Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended)
    • An entity with a minimum turnover of R100 million per annum for at least two (2) consecutive years at application stage confirmed by the latest available audited financial statements.
  • An Industry association registered in terms of paragraph 4.1.1 above, representing interests of member manufacturing companies.
    • An association with five (5) or more registered legal entities
    • An association which can organise itself for this purpose and must in this regard provide a letter(s) of commitment from manufacturer(s) that controls and/or has a direct influence in the market/manufacturing value chain to be developed.
    • All payments will be made directly to the strategic partner’s established Special Purpose Corporate Vehicle (SPCV) or a set-up cost centre.
  • The grant approval is capped at a maximum of R15 million (vat inclusive) per financial year over a
  • three (3) year period. I.e
  • The maximum grant allocation for the program is capped at R45 million. SPP offers a cost-sharing support of 50:50 towards manufacturing projects, and 70:30 towards projects that support manufacturing supply chain related services.

Qualifying Assets & Investments

  • Machinery, equipment and tools.
  • Infrastructure linked to the strategic partner’s supplier development initiative (owned/leased buildings, leased improvements)
  • Product or service development
  • Information and Communication Technology (ICT)
  • Operational costs
  • Business development services