Page 10 - Profmark BSA Guide 2025

INCENTIVES AND GRANTS

South Africa offers various incentives and grants to support businesses, particularly in
sectors like manufacturing, exports, and foreign direct investment. These incentives are
designed to encourage investment, job creation, and economic growth. They include
cash grants, tax allowances, concessional funding, and preferential infrastructure
access.
Government Agencies and Funding Sources:
Department of Trade, Industry and Competition (the DTIC):
This department is a key source of information and administers various incentive
programs.
Industrial Development Corporation (IDC):
The IDC provides funding and support for industrial development projects.
Small Enterprise Finance Agency (SEFA):
SEFA provides financial assistance and support to small and medium enterprises
(SMEs).
National Empowerment Fund (NEF):
The NEF focuses on promoting black economic empowerment.
Types of incentives and grants:
12l Tax Allowance Incentive (12l TAI)
Offers support for both capital investment and training for new industrial projects that
utilise only new and unused manufacturing assets, as well as expansions or upgrades
of existing industrial projects.
Manufacturing Incentives
Programs like the Manufacturing Competitiveness Enhancement Programme, Textiles
Production Incentive, and Automotive Investment Scheme aim to boost manufacturing
activities.
Social Grants
The South African government provides social grants like the Child Support Grant, Older
Person's Grant, and Disability Grant to individuals and families in need.
Black Industrialist Scheme (BIS)
This scheme aims to promote black-owned and managed businesses in various sectors.
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