The Capital Projects Feasibility Programme (CPFP) by the DTI -

The Capital Projects Feasibility Programme (CPFP) operates under the Department of Trade, Industry and Competition. It provides a cost-sharing grant to support feasibility studies. These studies assess projects that can increase local exports. In addition, the programme stimulates demand for South African capital goods and services. Therefore, it supports broader economic development and industrial growth.

Capital Projects Feasibility Programme (CPFP)

The programme supports feasibility studies within the manufacturing and capital goods sectors. In addition, it provides a cost-sharing grant linked to agreed project milestones. Therefore, beneficiaries receive funding aligned with project progress and deliverables.

Funding Contribution Structure

The programme applies different funding levels based on project location and size. For example, it funds 50% of feasibility study costs for capital projects outside Africa. However, it increases support to 55% for projects within Africa.

In addition, it provides 50% funding for manufacturing projects with assets above R30 million. Meanwhile, it offers 70% support for projects with assets below R30 million. Therefore, smaller projects receive greater financial assistance to encourage participation.

Objectives of the Capital Projects Feasibility Programme

The Capital Projects Feasibility Programme provides targeted grants to support feasibility studies. These studies focus on projects outside South Africa. In addition, the programme targets initiatives that can increase exports of South African capital goods and services. Therefore, it strengthens international trade opportunities and supports economic growth.

Primary Objectives of the CPFP

The programme aims to facilitate feasibility studies that lead to high-impact projects. As a result, it encourages investments that stimulate value-adding economic activities in South Africa. Furthermore, these activities align with national industrial policy objectives. Therefore, the programme contributes to long-term economic transformation.

Secondary Objectives of the CPFP

The CPFP supports several secondary objectives that drive broader economic development. Firstly, it attracts both domestic and foreign investment. In addition, it strengthens the international competitiveness of South African capital goods and related industries.

Moreover, the programme contributes to sustainable job creation. It also supports long-term demand for South African capital goods and services. Furthermore, it promotes project development across Africa, particularly within the Southern African Development Community region. In addition, it aligns with the objectives of the New Partnership for Africa’s Development.

Finally, the programme encourages linkages with small, medium and micro enterprises. It also supports black economic empowerment businesses. As a result, it promotes inclusive growth and broad-based economic participation.

Benefits of the Capital Projects Feasibility Programme

South African registered companies qualify as beneficiaries. These companies must conduct feasibility studies on projects outside South Africa. The projects may involve new developments, expansions, or the rehabilitation of existing assets.

The programme caps the grant at R8 million. It also limits funding to a maximum of 50% of the total feasibility study costs for projects outside Africa. For projects within Africa, the programme increases support to 55% of the total feasibility study costs.

In addition, the programme allows flexibility in project timelines. Depending on the nature of the project, applicants may receive approximately 18 months to secure funding. This period may vary slightly based on specific project requirements.

Eligible Enterprises for Capital Projects Feasibility Programme

A registered South African legal entity must undertake the feasibility study to qualify for support. However, a foreign applicant may participate if it partners with a South African entity. In such cases, the South African partner must submit the application.

In addition, applicants must comply with Broad-Based Black Economic Empowerment (B-BBEE) requirements. They must also submit a valid B-BBEE certificate to confirm compliance.

Studies that fulfill the following non-financial criteria will be eligible to apply for a grant through the program:

new projects, expansion of existing projects and the rehabilitation of existing projects;
the programme that is anticipated to emerge from the feasibility study must fulfil the objectives of the programme;
the minimum local content should be 50% for goods and 70% for professional services which remains at the discretion of the Adjudication Committee;
projects can be situated anywhere in the world ( excluding South Africa);
the project must have an adequate chance of being declared a success.

Additional evaluation criteria which can be considered as motivational factors about the project which may result in:

A positive impact on other developmental aspects including job creation, skills development, linkages with small, medium and micro enterprises etc.
A minimum of 10% of the total professional services involved during the feasibility study should be sub-contracted to South African black-owned professionals/entities;
A clear detailed time period within which the project emanating from the feasibility study will be realised;
Buy-in and other sources of funding from private and public sector organization(s) to realise the project.

A feasibility study will not qualify if it is:

Expected to result in a project which is not of capital goods and services in nature
Expected to result in a project which can be readily implemented without even conducting a feasibility study;
Expected to result in a bankable document which cannot translate into an implementable project
Receiving government’s funding for the same aspect of the same project.

Application for the Capital Projects Feasibility Programme

The applicant must submit the following documents to apply for the programme:

completed application form,
valid tax clearance certificate,
audited and independently reviewed financial statements for existing projects or projected financial statements for new projects,
curriculum vitae of the main study team,
copy of the pre-feasibility study report, company references,
company profile,
copy of signed MoU,
MoA,
joint ventures and off-take agreements and company registration documents (CK1).