The South African government offers a range of incentives to encourage foreign investment and grow South African business. Foreign companiesmay qualify for various tax incentives, while local companies are able to makeuse of schemes which include export facilitation, development finance andinvestment incentives.

Name Sector Description Objective Administrator
Accelerated Depreciation Allowance Manufacturing Allowance to write off manufacturing asset over 4 years. +40% for cost in first year and + 20% for next 3. Assets acquiredafter 1 March 2002 Promote acquisition of new assets in manufacturing sector callcentre@idc.co.za
Agro-Industries Development Finance Agriculture, Food, Beverage and Marine For business needing minimum of R1 million finance. Loans, equity and quasi-equity and suspensive sales. Competitive andrisk-related interest rate To promote the expansion of the agriculture and related industries callcentre@idc.co.za
Assistance by Individual Primary Steel Producers Steel Primary steel producers offer price rebate scheme used by exporters of secondary steel products. Rebates determined between producer and exporter on an individual basis. saisi@saisi.co.za
Bridging Finance for Contractors and Tenders All The finance for those who have firm contracts excluding construction Promotion of entrepreneurship in South Africa callcentre@idc.co.za
Business Linkage Challenge Fund Finance On bidding basis. Must have private sectorpartner. Projects compete on global basis for available funds. Grants rangefrom £50 000 to £ 1 million To link businesses to ensure transfer of knowledge, technology, skills, information and market access required forglobal competitiveness of particular benefit to the poor Deloitte and Touche
Business Loans for Retail Finance Intermediaries Retail Lending Loans between R1 and R10 million (less experienced) loans from R5 to R100 million for (more experienced) To provide finance for RFI to finance helpline@khula.org.za
Competitiveness Fund All 50% reimbursive grant up to R600 000 per entity for provision of competitive enhancement services To increase competitiveness of South African companies in all markets Competitiveness Fund
Competitiveness Programme Export See Guide to Exporting from South Africa for Details
Critical Infrastructure Programme Infrastructure development For municipalities and companies constructinginfrastructure. Between 10 – 30% of costs covered. Promote construction of key infrastructure for industrial development contactus@thedti.gov.za
Danida Business to Business Programme Financing Financial support for the costs of transferring management skills and technology form Denmark to SA. Khula may provide up to100% guarantee for bank loaning money to firm Create jobs for eligible entrepreneurs. Formation of business partnerships between South Africa and Denmark helpline@khula.org.za
Depreciation Allowance Manufacturing, Hotel, Farming Depreciation rates on new or used assets Promote investment in assets callcentre@idc.co.za
Development Finance Export See Guide to Exporting from South Africa for Details
Development programme for the textile and clothing industry Textile/ Clothing Phase down of ad valorem rates by Sept 2002. Removal of minimum duties To achieve international competitiveness within sector contactus@thedti.gov.za
Employee Housing Allowance All Tax deduction equal to 50% of the cost of erecting houses available limited to R6000 per house Promote the building of houses callcentre@idc.co.za
Employment Promotion Scheme Job creation Provides capital up to R100 000 per opportunity To promote job creation contactus@thedti.gov.za
Empowerment Finance Empowerment (All Sectors) Medium-term finance (loans or equity) for buyouts or leveraged buyouts and strategic equity partnerships. For venturesworth R1 – 100 million To promote emerging industrialists / entrepreneurs callcentre@idc.co.za
Entrepreneurial Mining and Beneficiation Finance Mining, Beneficiation and Jewellery Finance for business with minimum requirement of R1 million Expansion and promotion of small and medium mining and jewellery manufacturers callcentre@idc.co.za
Export Credit Insurance Export See Guide to Exporting from South Africa for Details
Export Finance Export See Guide to Exporting from South Africa for Details
Export Marketing and Investment Assistance Scheme (EMIA) Export See Guide to Exporting from South Africa for Details
Finance for the Textiles, Clothing, Leather and Footwear Industries Clothing and Textiles Financial contribution of 35-50% of with minimum financing requirement of R500 000. In the form of loans, suspensive sales andequity. Development and expansion of textile/clothing sector by providing necessary finance callcentre@idc.co.za
Financial Deepening Challenge Fund Financial Services Covers costs of expansion of financial serviceproducts and extension of services to poor. Cost sharing grant range from£50 000 to £ 1 million Support financial sector capacity development Deloitte and Touche
Financing for the Expansion of the Manufacturing Sector Manufacturing Minimum of R1 million. Medium-term finance (loans or equity) for buyouts or leveraged buyouts and strategic equitypartnerships. Development of manufacturing sector through the expansion of manufacturing capacity contactus@thedti.gov.za
Foreign Investment Grant Manufacturing (SA company with foreign direct shareholding of minimum 50%) Grant covering transport costs of machinery from abroad or 15% of value of new machinery. Conditional to SMEDP or SIP approval Encourage foreign investment in manufacturing sector smedp@thedti.gov.za
Fund for the Committee on Secondary Manufacture Manufacturing Financially supported by primary steel producers. Aimed at encouraging the use of primary steel in the manufacture of secondary steel products for export. saisi@saisi.co.za
Industrial Development Zones Development / Manufacturing / Exports Excellent infrastructure and streamlined, efficient customs in importation of goods/raw materials used formanufacturing Promote manufacturing and encourage and improve South African exports contactus@thedti.gov.za
Innovation Support Programmes Export See Guide to Exporting from South Africa for Details
International Tourism Marketing Assistance Scheme Tourism Partial compensation of businesses for predetermined costs incurred in promotion of products related to tourism To promote the marketing of the South African tourism industry callcentre@idc.co.za
Khula Credit Guarantee Financing Provides maximum guarantee of R600 000 over 3years for SMMEs. Firm must have net asset value of at least R2 million and mustmeet bank’s normal lending requirements. Promote SMMEs and RFI through the provision of guarantees for the securing of bank loans. helpline@khula.org.za
Khula Equity Fund All Available to SMMEs with min. value of R500 000. Proof of viability required Promotion of SMMEs with potential for growth. Funding of joint ventures and buyouts helpline@khula.org.za
Khula Start Rural Community Development NGOs and CBOs involved in training and varioussmall enterprise activities. Groups of 3 – 10 with loans of R300– R3500 per member Increase access to micro credit to rural communities in South Africa helpline@khula.org.za
MIDP –Productive Asset Allowance Automotive and components Available to motor vehicle assemblers and component manufacturers is a duty credit calculated to 20% of value ofexpenditure on productive assets. The credit is against import duties and isspread equally over 5 years To encourage fixed capital investment and rationalisation of model ranges specifically light vehicles. contactus@thedti.gov.za
Motor Industry Development Programme (MIDP) Automotive and Components Import Rebate Credit Certificates based on export performance To encourage an increase in local content of exported vehicles and components contactus@thedti.gov.za
Orchards Schemes Agriculture Low interest loans granted to those establishing orchards and thus creating jobs Encourage job creation in the agricultural sector contactus@thedti.gov.za
Partnership in Industrial Innovation Manufacturing / Information Technology Reimbursive grant for up to 50% of development cost of product. Amount based on commercial success of product. Stimulate industrial research and innovation spii@idc.co.za
Private Sector Assistance Export See Guide to Exporting from South Africa for Details
Research and Development All Tax deduction for operating costs related toR&D of 25% of the cost of capital expenditure approved by CSIR Promote research and innovation callcentre@idc.co.za
Sector Assistance Scheme (SSAS) Export See Guide to Exporting from South Africa for Details
Sector Partnership Fund Manufacturing and Agro-processing Grant (max R 1 million) covering up to 65% of preparation costs for technical and marketing programmes To encourage economic growth and job creation contactus@thedti.gov.za
Seed Loans for Retail Finance Intermediaries Retail Lending Loan of between R50 000 to R20 million. Turned into grant once performance criteria have been agreed upon Provide finance for the initial establishment and expansion of RFI helpline@khula.org.za
Skills Support Programme Training 50% grant of training costs for SMEDP project for up to 30% of annual wage bill. Assist new and growing companies with training costs contactus@thedti.gov.za
Small and Medium Enterprise Development Programme (SMEDP) SMMEs (Manufacturing and Tourism) Two year cash incentive on qualifying assets and 3rd year if labour requirement is met. To encourage investment of up to R100 million in small and medium SA companies contactus@thedti.gov.za
Strategic Industrial Projects Industry, Technology and Agrotourism R3 billion available for investors in strategic industrial projects until 2001. Entails tax allowances of between 50 to 100% ofan approved investment Encourage investment in Maputo Corridor, Gauteng special economic zone and Wild Coast and Fish River. callcentre@idc.co.za
Strategic Investment Projects (SIP) Investment A capital allowance of 50% or 100% of the cost of productive assets to be used within 3 years. Applicable to enterprisesinvesting in projects that exceed R50 million Encourage investment in important industrial sectors contactus@thedti.gov.za
Structural Adjustment Programmes for Industry Export See Guide to Exporting from South Africa for Details
Support Programme for Industrial Innovation All Private Sector Entities Grant of 50% max R.1.5 million/project) of actual direct cost of product development To encourage development of local innovation callcentre@idc.co.za
Tax Threshold for Small Businesses All SMMEs with annual turnover of less than R3 million eligible for 15% graduated tax rate with taxable income of R150000 Encourage development of SMMEs callcentre@idc.co.za
Techno-Industry Development Finance Computers and Communications Equity or loan finance for companies with minimum financing requirement of R1 million for expansion or new ventures Development and expansion of IT intensive businesses callcentre@idc.co.za
Technology and Human Resources for Industry Programme (THRIP) Organisations involved in Research and Training of Students Contribution of R1 for every R2 spent on research project of which project and project leader is in higher educationfacility To increase South African industry’s competitiveness contactus@thedti.gov.za
Technology for Women in Business (TWIB) Science / Technology and Engineering and Empowerment Identification of specific technological needs of women in business Enhancing accessibility of technology to women in business (esp SMMEs) contactus@thedti.gov.za
Technology Transfer Guarantee Fund Technology 90% of the technology transfer transaction costs over five years. Maximum is R1 million Allowing SMMEs access to loans for acquisition of manufacturing technology helpline@khula.org.za
The Innovation Fund Science Biotechnology and Engineering Grant of R1 – 5 million over three years Encourage research community towards technical innovation contactus@thedti.gov.za
The Land Reform Credit Facility Agriculture Loans with deferred payments. Available to investors/banks financing land or shares for emerging farmers or farmworkers Promoting increased access to commercial land. Empowerment and job creation helpline@khula.org.za
The National Industrial Participation Programme All Available to government suppliers with imported content equal to or over $10 million with commitment to further involvement incommunity Promote the development of South African industry contactus@thedti.gov.za
Tourism Development Finance Tourism Minimum finance requirement of R1 million. Provision of medium-term finance (loan, equity) for upgrading or renovation oftourist facilities Development and expansion of tourism callcentre@idc.co.za
Tourism schemes Tourism Capital for development of new or existing tourism facilities Development of tourism especially eco-tourism contactus@thedti.gov.za
Venture Capital Scheme All Capital for products with good growth potential. Package structured in terms of risk and growth potential To promote product innovation contactus@thedti.gov.za
Wage Incentive Education and Training Available to employers offering approved (National Qualification Framework) learnerships. A tax deduction allowed onconclusion of learnership agreement and further R25000 on successful coursecompletion To promote employee training callcentre@idc.co.za
Wholesale Finance Franchising Medium term loans (mx 6 yrs) to intermediates who provide strong business record. Cheap finance to intermediates for loan to individuals callcentre@idc.co.za
Work Place Challenge Manpower and Employment Enhancement of cooperation between workers and management Aims to improve country’s competitiveness and employment creation contactus@thedti.gov.za


Deloitte and Touche

Department of Trade and Industry

Guide to Exporting from South Africa






This profile has been prepared to assist companies both inside and outside South Africa to conduct business efficiently in and withSouth Africa. While every endeavour has been made to ensure that theinformation contained in this profile is current and correct, we recommend thatcompanies making decisions based on this information contact the appropriateprofessional advisers, government department or organisation to verify thecurrent situation.

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Werksmans Attorneys , one of South Africa’s leading corporate law practices has published the Business Guide to South Africa to give the reader a brief overview of the investment climate, taxation, forms of business organisation and business, accounting and legal practices in South Africa.

Leading South African law firm Cliffe Dekker provides an overview of privatisation in South Africa which is updated on a regular basis so interested parties can stay abreast of the process.

The African Resource Network, comprising some of Africa’s leading consultancies in their fields, provides a unique one-stop African information / intelligence / research / advisory service via the Internet to companies and business-people around the world with an interest in doing business in Africa.

A number of chemical products are used to facilitate refinery operations. These include catalysts, process chemicals, performance additives and specialised dyestuffs. CPI Engineering South Africa is one of the key suppliers of these products in South Africa.

The Industrial Development Corporation of South Africa is a self-financing, national development finance institution focusing on contributing to economic growth, industrial development and economic empowerment through its financing activities.

The Corporate Council on Africa an American non-profit, tax-exempt organization dedicated to enhancing trade and investment ties between the United States and the 53 nations of Africa .

Phillips Consulting is a world-class management consulting firm who specialise in assisting foreign companies to do business in Africa.

South Africa boasts a number of smaller consulting firms who offer a wide range of services, from personnel placement to geological surveying. Click through to our SA Consulting Services page to find out more about the excellent, cost-effective services these companies provide.

HBD Venture Capital provides finance for projects involving new technology.

Euromoney Plc is organising the fourth Coaltrans South Africa conference, which will focus on key issues in the South African coal market today. 1st – 2nd March 2004.

Southern African Business Associationindependent association of private sector companies and organisations intent on promoting trade and investment in Southern Africa.

CDC Capital Partners is a leading private equity investor in growing independent businesses in emerging markets worldwide.

Africa Project Access provides specialist consulting services and information regarding projects in Africa. The company publishes a monthly newsletter,Africa Project Newsletter.

The CEF (Pty) Ltd is the South African government’s holding company in the petroleum industry. CEF is mandated by the state to engage in the acquisition, exploitation, generation, manufacture, marketing and distribution of energy from and to engage in research relating to the energy sector.

Energy Africa is an upstream oil company which is active in oil exploration in a number of African countries.

Nutritional Foods is a South African Company, which makes and sells powdered foodstuffs and food ingredients, dry-blended or spraydried.

MBT South Africa import plastics raw materials for the processing industry across the southern African sub-continent. The company is small and focused, and prides itself on its technical knowledge and responsiveness to customer needs.

Wildnet Africa Properties has the finest selection of wildlife and nature-orientated investment opportunities available in Southern Africa. We specialise in game ranches and eco-tourism real estate investments.

The International House Language Lab is one of Africa’s foremost English language schools. Ideally situated in English speaking Johannesburg, the financial, commercial and cultural hub of Africa, the school offers English courses of the highest international standards at affordable prices.

Business Presentation Skills partners their clients to achieve successful business relationships through effective interpersonal communication skills.

Shaun Bakamoso

Greetings. I'm Shaun Bakamoso, and I'm thrilled to be your guide through the dynamic world of business news in South Africa here at mbendi.co.za. With a passion for staying informed and a keen interest in the ever-evolving landscape of business, I've dedicated myself to providing you with timely, insightful, and comprehensive coverage of the latest developments impacting the South African economy. bakamoso@gmail.com / Instagram