19-09-2013, 03:19 PM
Pretoria - The Department of Trade and Industry (dti) will from Friday, 20 September, suspend new applications for its Manufacturing Investment Programme (MIP).
“The MIP has met with overwhelming interest from industry, with the result that the six-year budget that was set aside for the programme has been oversubscribed.
“This oversubscription has necessitated the suspension of the programme earlier than originally intended,†Deputy Director-General of the Industrial Development and Incentive Administration Division (IDIAD), Tumelo Chipfupa, said on Thursday.
While no new applications will be considered as a result of the suspension, all applications that have been registered on the MIP online system before midday, 20 September, may still be completed by the respective applicants. These applications will be evaluated and considered for support in line with the guidelines of the programme.
The programme’s objective is to support investment in new and expansion projects by Small and Medium-Sized Enterprises (SMMEs) in the manufacturing sector.
It was introduced in 2008 and was intended to be implemented until July 2014.
By the end of June 2013, about 2 000 new and expansion projects in the manufacturing sector had been approved, and over R2 billion disbursed to enterprises.
Over 200 (10%) of the approved projects were foreign direct investments (FDI) by either new or already established entities in South Africa.
The expected investment by FDI enterprises supported by the programme is more than R13 billion and over 20 000 jobs are expected to be created and/or sustained by these enterprises.
Among the other highlights of the programme is that more than 1 000 (50%) of all approved projects were by small enterprises with investments of less than R5 million per project. The small enterprises supported are expected to create and or sustain more than 30 000 jobs.
“The dti is in the process of considering amendments to the existing Manufacturing Competitiveness Enhancement Programme (MCEP) that will enable the continuation of support for newly established manufacturing projects by small and medium sized enterprises. Announcements in this regard will be made before the end of this fiscal year,†said Chipfupa. –SAnews.gov.za
“The MIP has met with overwhelming interest from industry, with the result that the six-year budget that was set aside for the programme has been oversubscribed.
“This oversubscription has necessitated the suspension of the programme earlier than originally intended,†Deputy Director-General of the Industrial Development and Incentive Administration Division (IDIAD), Tumelo Chipfupa, said on Thursday.
While no new applications will be considered as a result of the suspension, all applications that have been registered on the MIP online system before midday, 20 September, may still be completed by the respective applicants. These applications will be evaluated and considered for support in line with the guidelines of the programme.
The programme’s objective is to support investment in new and expansion projects by Small and Medium-Sized Enterprises (SMMEs) in the manufacturing sector.
It was introduced in 2008 and was intended to be implemented until July 2014.
By the end of June 2013, about 2 000 new and expansion projects in the manufacturing sector had been approved, and over R2 billion disbursed to enterprises.
Over 200 (10%) of the approved projects were foreign direct investments (FDI) by either new or already established entities in South Africa.
The expected investment by FDI enterprises supported by the programme is more than R13 billion and over 20 000 jobs are expected to be created and/or sustained by these enterprises.
Among the other highlights of the programme is that more than 1 000 (50%) of all approved projects were by small enterprises with investments of less than R5 million per project. The small enterprises supported are expected to create and or sustain more than 30 000 jobs.
“The dti is in the process of considering amendments to the existing Manufacturing Competitiveness Enhancement Programme (MCEP) that will enable the continuation of support for newly established manufacturing projects by small and medium sized enterprises. Announcements in this regard will be made before the end of this fiscal year,†said Chipfupa. –SAnews.gov.za