Enterprise Investment Programme (EIP)
The Minister of Trade and Industry, Dr Rob Davies (MP), has approved the revised guidelines pertaining to the Enterprise Investment Programme (EIP) and its sub-programmes, the Manufacturing Investment Programme (MIP) and Tourism Support
The revised guidelines will become effective and be implemented as of 5 October 2009. This is to allow the Department of Trade and Industry (the dti) sufficient time to make the necessary adaptations to its online application system. Hence, all applications submitted to and received by the dti before 5 October 2009, should comply with the original guidelines published in the Government Gazette, Vol. 517, No. 31226, dated 4 July 2008.
However, amendments to the following paragraphs in the revised guidelines will be implemented with immediate effect:
- Amendments to paragraphs 3.5 (MIP) and 3.8 (TSP) respectively, which relate to the acquisition of assets; and
- Amendments to Table A1 and A2 (MIP), which relate to the economic benefit criteria.
Manufacturing Investment Programme (MIP)
The MIP is a reimbursable cash grant for local and foreign-owned manufactures who wish to establish a new production facility; expand an existing production facility; or upgrade an existing facility in the clothing and textiles sector.
Tourism Support Programme (TSP)
The TSP is a reimbursable cash grant that aims to support the development of tourism enterprise that will stimulate job creation and increase the geographic spread of tourism investment.
Qualifying Marginalised Areas Advancing Spatial Economic Activity (MIP and TSP Incentives)
The Manufacturing and Tourism incentive programmes (MIP and TSP) currently stimulate industrial and tourism investment throughout the nine provinces of South Africa. To view a comprehensive list of beneficiaries, click here.
Relaxation of turnover requirements
The Enterprise Investment Programme Adjudication Committee, at the November 2011 meeting, approved the following relaxation with regard to turnover:
- Stage 2 claims: the project must demonstrate 20% of the projected turnover for year one.
- Stage 4 & 6 claims: the project must demonstrate 40% of the projected turnover for years two and three.
There is no distinction on whether the project is below or above R5 million of investment. Please note that the relaxation is only applicable until 31 December 2012.