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National Industrial Participation (NIP) Programme  

The Industrial Participation is a programme that seeks to leverage economic benefits and support the development of South African industry by effectively utilizing the instrument of government procurement. The NIP programme is mandatory on all government and parastatal purchases or lease contracts (goods and services) with an imported content equal to or exceeding US$10 million.

The programme is targeted at the South African industries, enterprises, and suppliers of goods and services to government / parastatals, where the imported content of such goods and services equals to or exceed US$10 million. The first customer of NIP is the South African industry that benefit through the NIP business plans which, when implemented generate new or additional business activities through one or more of the following: investment, export opportunities, job creation, increased local sales, SMME and BEE promotion, R & D and technology transfer. The second customer of NIP is the foreign suppliers who benefit from the programme through increased participation in the South African economy.

In the case of foreign customers, the imported content of the purchase or lease contract for goods and services must equal to or exceeding US$10 million to qualify for participation. In the case of South African industries, participation is dependent on enterprise capability to satisfy the requirements of both the IP programme and the foreign supplier.

The process followed during application includes the following steps:

  1. Make contact with the dti;
  2. Submit business concept for consideration and approval by the dti;
  3. Upon approval of business concept, submit detailed business plan outlining the business concept;
  4. Sign the IP Agreement with the dti;
  5. Implement the business plan;
  6. Submit bi-annual progress reports on approved business plan.

The turnaround time for approval of applications is 4 weeks, while the awarding of the programme takes 1 month.

To enquire about the programme, contact Industy Development Division (IDD), the dti Customer contact centre: 0861 843 384