Strategic Partnership Programme

The objective of the Strategic Partnership Programme (SPP), 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 (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

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 SPP Adjudication Committee may consider for support, any other costs related to the activities that support the strategic partnership.

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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 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.

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).