What is the Support Programme for Industrial Innovation (SPII)?
The Support Programme for Industrial Innovation (SPII) is designed to promote technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and/or processes. SPII is focussed specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced.
The SPII is made up of three different schemes:
• The first being the Product Process Development scheme, which provide financial assistance to small, very small and micro enterprises and allows for a maximum grant of R2 million for cost incurred in precompetitive development activities.
• The second scheme and probably the most accessed scheme of the three is the Matching Scheme. The maximum grant is R5 million and is based on a percentage of development cost incurred. Depending on BEE ownership the grant starts at 50% of qualifying development cost incurred and increases to 75% if BEE ownership is more than 50%. The grant from the Matching Scheme is not repayable.
• The last scheme is the Partnership Scheme which has a R10 million limit. However, the grant in this scheme is repayable over a fixed period based on a percentage of the project. The repayment period will be agreed up front. The percentage contribution is 50% of qualifying development cost incurred.
Benefits:
- Product Process Development Scheme – Provides financial assistance to small, very small, micro-enterprises and individuals in the form of a non-repayable grant. A percentage of ‘qualifying’ costs incurred in the pre-competitive development activities associated with a specific maximum of a R2 million grant.
- Matching Scheme – A percentage of ‘qualifying’ costs incurred in the development activities of a specified development project. Maximum of a specified R5 million grant.
- Partnership Scheme – The levy-based grant is based on a percentage of sales over a fixed number of years. The levy percentage and repayment period are established at the time of the grant. Minimum contribution of R10 million.
The SPII offers two schemes, namely the Product Process Development Scheme and the Matching Scheme.
