The Department of Trade, Industry and Competition (DTIC) implements the Support Programme for Industrial Innovation (SPII) to promote technology development within South Africa’s industrial sector.
In particular, the programme provides financial assistance for the development of innovative products and processes.
Moreover, SPII focuses on the development phase of innovation.
This phase begins after basic research concludes and ends once a pre-production prototype has been completed.
Accordingly, the programme supports the transition from concept development to practical, near-market solutions.
In addition, SPII was designed to fund commercially viable innovations.
It also facilitates the commercialisation of new technologies across targeted industries.
However, SPII only supports projects where its contribution is significant.
Specifically, it excludes projects where its funding accounts for less than 20% of total project costs.
Furthermore, SPII targets South African private-sector enterprises as beneficiaries.
In some cases, specific provisions apply depending on the scheme under which an applicant applies.
Benefits under SPII
The programme offers two main schemes, namely the Product Process Development Scheme and the Matching Scheme.
Firstly, the Product Process Development Scheme provides financial assistance to small, very small, micro-enterprises, and individuals.
It offers non-repayable grants that cover a percentage of qualifying costs incurred during pre-competitive development activities.
Importantly, this scheme provides funding of up to a maximum of R2 million per project.
Secondly, the Matching Scheme supports broader development activities within specified projects.
It provides a percentage-based grant linked to qualifying development costs.
Importantly, it offers funding of up to a maximum of R5 million per project.
In addition, the Partnership Scheme provides a levy-based grant linked to sales performance over a fixed period.
It determines the levy percentage and repayment period at the time of approval.
Moreover, it requires a minimum contribution of R10 million for participation.
The Product Process Development Scheme under the Support Programme for Industrial Innovation
It has a maximum funding limit of R2 million and operates on a non-repayable basis.
Furthermore, the allocation of funds depends on the applicant’s B-BBEE status.
In addition, the B-BBEE status of the company determines the level of financial support that it can receive.
- 0 % to 25 % BEE shareholding: 50 % of qualifying costs can be funded.
- 25, 1% to 50 % BEE shareholding OR > 50 % ownership by women / people with disabilities: 75 % of qualifying costs can be funded.
- More than 50 % black ownership: 85 % of qualifying costs can be funded.
Non-qualifying costs and projects:
- Production and commercialisation related;
- Marketing and administrative costs;
- Product / process development for a single client;
- Basic and applied research;
- Projects which, at the time of development, are 70 % complete; and
- All costs incurred prior to submitting a duly-completed application.
The Matching Scheme
It provides financial assistance as a non-taxable and non-repayable grant covering 50% of qualifying costs incurred during pre-competitive development activities associated with a specific project.
The following projects do not qualify for support:
Furthermore, applicants cannot submit projects that are more than 50% complete at the time of application.
In addition, applicants cannot use other government grants to fund the same project.
Moreover, the programme excludes military-related projects unless they demonstrate substantial commercial or civilian application.
Similarly, applicants cannot include projects that rely on third-party licensed technology where the licence restricts commercial use.
Finally, government-funded institutions do not qualify directly for support, but they may participate as subcontractors.
Criteria for SPII support:
- Development should represent significant advance in technology;
- Development and subsequent production must take place within South Africa;
- Intellectual Property to reside in South African registered company;
- Participating businesses must be South African registered enterprises;
- Government-funded institutions do not directly qualify for support but may participate as subcontractor(s); and
- No simultaneous applications from the same company.
Qualifying Costs:
- Personnel-related costs;
- Travel expenses (defined maximum);
- Direct material;
- Capital items and tooling;
- Software (not general);
- Documentation;
- Testing and trials;
- Licencing costs;
- Quality assurance and certification;
- Patent costs; and
- Subcontracting and consulting.
Contact us for more information on how you can access the Support Programme for Industrial Innovation.
