| The definition of the incentive scheme
The Co-operative Incentive Scheme is a 90:10 matching cash grant for registered co-operatives. The maximum grant that can be offered to one co-operative entity under the scheme is R300 000 (three hundred thousand Rand). The CIS is an incentive for cooperative enterprises in the emerging economy to acquire competitive business development services.
The aim of the incentive scheme
- Promote co-operatives through the provision of a matching grant
- Improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business
- Assist co-operatives to acquire their start up requirements
- Build an initial asset base for emerging co-operatives to enable them to leverage other support
- Provide an incentive that supports broad-based black economic empowerment
Eligible entities
- Be incorporated and registered in South Africa in terms of the Co-operatives Act of 1991
- Be operating or will operate in the emerging sector
- Adhere to co-operative principles
- Be an emerging co-operative owned by historically disadvantaged individuals
- Be rural and semi-urban biased
- Be biased towards women, youth and people with disability
Qualifying criteria for the incentive scheme
- Business development services
- Business profile development
- Feasibility studies / market research
- Production efficiency
- Technological improvement projects
- Plants and machinery
- Start-up requirements
- Working capital requirements
Applying for the co-operative incentive scheme
- Application form
The application form should be completed in full, dully signed and submitted to the dti by the applying co-operative to
indicate the intention to participate in the CIS
- Proof of registration
Applications must provide proof of incorporation in the form of a certificate of registration indicating the name of the cooperative,
its registration number, information about the registered office and the names of directors
- Proof of decision to apply for funding
The applying co-operative must be able to provide a resolution for it to apply for the CIS. This could be by way of attaching
the minutes of the co-operative Board on the session taking the decision to apply for the grant.
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Enterprise Development Plan / Pre Diagnostic Report
The report is for assessing the enterprise development needs of the co-operative. It may be compiled with the assistance of a field official
- Co-operative Business Plan
Applicants must attach a business plan.Atemplate is included in the application forms
- Quotation
Should an application include the purchase of goods, three valid and comparable quotations should be attached to it
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Tax clearance
The applicant must submit a valid tax clearance certificate
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Certified copies of IDs of Directors
The applicant must submit certified copies of the identity documents of the Directors of the co-operative
- Constitution
The applicant must submit a certified copy of the constitution of the co-operative applying for the grant.
CIS Guidelines and application forms
Success Story:
- Building their business, brick-by-brick - Co-operative Incentive Scheme lays the foundation for SMME growth
Schedule of applicable terms
Download the Schedule of applicable terms - 15 August 2009
For more information contact:
Physical address:
the dti Campus
Building A
77 Meintjies Street Sunnyside
PRETORIA
Administrators:
Secretariat
012 394 1425
Business Development Unit
012 394 1115
031 305 3389
041 582 1267
021 480 8051/60
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