SMME Development Financial Assistance (Incentives)
Strategic Partnership Programme (SPP)
The Department of Trade and Industry (the dti) initiated the Strategic Partnership Programme (SPP) to develop and support programmes/interventions aimed at enhancing the manufacturing and services supply capacity of suppliers with linkages to strategic partner’s supply chains, industries or sectors.
The objective of SPP to encourage large private sector enterprises in partnership with Government to support, nurture and develop SMEs within the partner’s supply chain or sector to be manufacturers of goods and suppliers of services in a sustainable manner.
The intention of the programme is to support Broad-Based Black Economic Empowerment (B-BBEE) policy through encouraging businesses to strengthen the element of Enter and Supplier Development (ESD) of the Codes of Good Practice.
SPP will be available on a cost-sharing basis between Government and the strategic partner(s). It is available for infrastructure and business development services necessary to mentor and grow enterprises.
The following costs are eligible for support:
Machinery, equipment and tools
Infrastructure linked to the strategic partner’s supplier development initiative (owned/leased buildings, leased improvements)
Product or service development
Information and Communication Technology (ICT)
Business development services
The grant approval will be based on projections for the first year at application stage whereas the approval for subsequent year(s) will be dependent on the review of actual performance of the preceding year against agreed milestones.
All payments will be made directly to the strategic partner’s established Special Purpose Corporate Vehicle (SPCV) or a set-up cost centre.
The grant approval is capped at a maximum of R15 million (vat inclusive) per financial year over a three (3) year period towards qualifying costs, based on the number of qualifying suppliers and is subject to the availability of funds
SPP offers a cost-sharing support of 50:50 towards manufacturing projects and 70:30 for projects that support manufacturing supply chain related services and deemed strategic by the dti.
The strategic partner can either be:
A South African registered legal entity in terms of the Companies Act, 1973 (as amended) or the Companies Act, 2008 (as amended); the Close Corporation Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended)
An entity with a minimum turnover of R100 million per annum for at least two (2) consecutive years at application stage confirmed by the latest available audited financial statements.
An Industry association registered in terms of paragraph 4.1.1 above, representing interests of member manufacturing companies.
An association with five (5) or more registered legal entities
An association which can organise itself for this purpose and must in this regard provide a letter(s) of commitment from manufacturer(s) that controls and/or has a direct influence in the market/manufacturing value chain to be developed.
The strategic partner must be:
A taxpayer in good standing and must be in this regard provide a valid tax clearance certificate.
In compliance with the requirements of B-BBEE and must provide a valid certificate of B-BBEE Compliance.
60% of total SME’s supported by the strategic partner programme should at least be 51% owned by black south African citizen(s).
Committed to the strategic partnership by having a corporate interest in supplier development and must in this regard provide a market access plan for the SME’s to be developed or off-take agreement(s).
Applicants are welcome to contact the dti directly or its appointed business support agencies in the provinces that can assist them with the application process.
Applicants must submit a completed application form to the dti outlining the objectives of the project.
Applications must be submitted on line through the dti website. No hand delivered applications will be accepted.