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Sector Specific Assistance

Purpose

Assistance is provided to specific industry sectors with the objective of:

1. Developing new export markets.
2. Broadening the export base.
3. Stimulating the participation of SME's in the export sector, promoting black economic empowerment (BEE) and woman empowerment (WE), with the use of backward linkages as an instrument to achieve the above
4. Increase job creation as a result of the above objectives

Qualifying Applicants

• Export Councils that are formally approved by the dti. An Export Council is a Section 21 (non-profit) company that serves to represent the developmental and promotional objectives of a particular industry/industries on a national level. The needs of that industry should justify the formation of an Export Council and the identified industry should fall within the dti's key priority sectors of industry.
• Recognised Industry Associations
• Groups of three or more entities known as Joint Action Groups (JAGS) that amalgamate with the primary objective of embarking on a project/s that benefit an industry/industries as a whole.

How to form an Export Council or a Joint Action Group (JAG)

• The board of an Export Council must be elected by the industry that it seeks to represent.
• Both Export Councils and Joint Action Groups (JAGs) must lodge applications to qualify as such with the relevant Operations Sector Desk at the dti:Trade Investment South Africa .

Assistance for Approved Export Councils

• A grant for the establishment of an Export Council of R 50 000, for the purpose of registering a Section 21 company and for attorneys' and business consultant's fees.
• A membership income matching grant. the dti will fund the Export Councils up to a maximum of R 500 000 per year matching membership income, for the purpose of operational costs.

Project funding for all qualifying applicants

• The fund exists for specific projects proposed by qualifying applicants that will contribute to the development and promotion of an industry as a whole.
• the dti will partially contribute (between 50% and 80%) of the cost of project/s that have been approved in writing by the dti. the dti reserves the right to determine the percentage that will apply.
• Applications must be submitted using the prescribed Project Funding Application Form.

Financial assistance for marketing and advertising for all qualifying applicants

• Generic advertising and publicity will be funded on a matching grant basis to a maximum of R250 000 per annum.
• Marketing materials, namely (a) Export Directories and brochures; (b) Export videos and CD-Roms, to be funded on a matching grant basis up to a maximum of R100 000 per annum.
• Assistance for local trade exhibitions where a maximum of R100 000 per annum can be contributed by the dti on a matching grant basis towards the cost of the rental of exhibition space and the construction of exhibition stands.

Sector Specific Assistance - Application Process and Claim Procedures

• Applications for project funding should be submitted to the dti:Trade Investment South Africa Operations Sector Desks at the beginning of each financial year
• Claimants may claim according to milestones achieved on a project or on completion of the entire project, and must together with a report on the achievements provide details/proof of the outcomes of the project i.e. results, performance indicators and variance. If in exceptional cases cash flow is limited, claimants may provide invoices and be paid against invoices, provided that proof of payment is provided thereafter
• Applications for financial assistance for marketing and advertising must be discussed with and approved in writing by the dti: Trade Investment South Africa.
• To obtain the membership matching grant, applicants must provide the dti:Trade Investment South Africa with a reconciliation statement of membership fees received and proof of income. Loans from banks or other sources will not be considered as a contribution from Export Councils.

Requirements and conditions of funding

• Provide original or certified copies of invoices, bank statements and receipts.
• Obtain and provide an original tax clearance certificate from the South African Revenue Service (SARS).
• Provide dti:Trade Investment South Africa with proof of the claimant's bona fide bank account.
• An Export Council will provide annually a set of audited financial statements six months after its financial year-end.
• All dti financial assistance must be formally approved before expenses are incurred.
• Should applications and claims be incomplete, or documentation not verifiable, the processing of applications/claims may result in long delays or the rejection of the application/claim.
• If the applicant uses third party service providers where such service providers would be the ultimate recipients of dti funding, the applicant must provide three quotations with a written motivation of the reasons for the selection of the third party service provider/s, and must obtain written approval from dti before engaging such service providers.
• Legal agreements between the dti and applicants may be entered into to ensure good governance.
• dti funding will only be provided once the applicant has received written confirmation of the success of the application.
• Export Council or JAG members travelling abroad in support of specific projects will only receive normal EMIA assistance namely:
  1. Subsistence allowance of R1350 per day and
  2. Air travel (Economy class only).

Download: Sector Specific Assistance Guidelines