The Cluster Development Programme (CDP) is an incentive programme that aims to promote industrialisation, sustainable economic growth, and job creation needs of South Africa through cluster development and industrial parks.
The following organisations are excluded from either applying as clusters or forming part of a cluster:
- Export councils;
- Industry associations; and
- Trusts.
The programme excludes certain costs. It does not fund activities that receive support from another government scheme or a quasi-government scheme. In addition, it excludes any funding that comes from entities outside the cluster members.
Application Process
Applicants should visit the website of the Department of Trade and Industry and access the Financial Assistance section. Thereafter, they can review the relevant guidelines and application forms. The department provides all necessary information within each funding and incentive programme.
Cluster Eligibility Requirements
An eligible cluster must include at least five members. These members must register as tax-paying entities or non-profit organisations. Furthermore, at least 20% of the cluster membership must consist of entities that are 51% black-owned during the first year, which serves as the pilot stage.
Industrial Park Preferences
Industrial parks must meet specific criteria. The programme gives preference to parks located in areas with high unemployment, such as townships and rural regions. Moreover, the majority of tenants must operate within manufacturing or supply-based industries.
Urgent Notice: Suspension of the Cluster Development Programme
The Department of Trade and Industry (DTI) will suspend new applications for the Cluster Development Programme from 01 April 2018. It implemented this decision because the first phase of the programme operated as a pilot project. During this phase, it supported a limited number of selected clusters. These clusters demonstrated the potential success of cluster development in South Africa.
Impact Assessment and Review
The DTI has already commissioned work to assess the impact of the pilot programme. It expects to receive the study’s recommendations during the 2018/19 financial year. These findings will inform future decisions on the programme.
Ongoing Commitments and Incentives
The DTI will continue to honour all approved applications. In addition, it will maintain all other departmental incentives without any changes.
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