The  objective  of  the  Strategic  Partnership  Programme,  a  sub-programme  of  the Enterprise Investment Programme 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 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.

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.

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Grant Support

The  grant  approval  will  be  based  on  projections  for  the  first  year  at  application  stage whereas the approval for subsequent year(s) will be accepted in principle and be reviewed annually subject to actual performance in the preceding year(s) against agreed milestones.

All  payments  will  be  made  directly  either  to  the  primary  bank  account  of  the  strategic-partner’s established SPCV or the set-up cost centre. 

The  programme  offers  a  cost-sharing  support  of  50:50  towards  manufacturing  projects where the dti contributes 50% towards the total approved amount and the strategic partner contributes 50% towards the total approved amount. 

For  projects  that  are  not  in  the  manufacturing  sector,  but  however  support  manufacturing supply chain related services8 and are deemed strategic by the dti, the programme offers a cost-sharing  support  of  70:30  where  the  strategic  partner  contributes  70%  and  the  dti contributes 30% towards the total approved amount.

The strategic partner(s) contribution to the project can be in the following form:

  • Cash transferred to the primary bank account of the strategic-partner’s established SPCV or the set-up cost centre for the sole purpose of the strategic-partnership; 
  • Machinery and equipment (valued and a plan in place for the transfer or post-use of the assets by the SME’s at the end of the strategic-partnership); 
  • Commercial vehicles (valued and a plan in place for the transfer or post-use of the commercial vehicles by the SME’s at the end of the strategic-partnership).
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Should you be interested in applying for the business grant, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for Strategic Partnership Programme.