Critical Infrastructure Programme (CIP) Overview
The Critical Infrastructure Programme (CIP) supports investment by funding infrastructure that businesses consider essential for growth. By lowering infrastructure costs, the programme reduces the overall cost of doing business in South Africa. Furthermore, it stimulates investment in line with the National Industrial Policy Framework and the Industrial Policy Action Plan.
The CIP operates as a cost-sharing incentive. It releases funds to approved applicants once they complete verifiable milestones. In certain cases, the Adjudication Committee may approve alternative payment structures. Importantly, a project must prove that the investment would not proceed, or would not operate efficiently, without the required infrastructure. Therefore, applicants must clearly demonstrate the strategic importance of the infrastructure to their operations.
Eligibility Criteria for the Critical Infrastructure Programme
To qualify for the Critical Infrastructure Programme, applicants must meet specific requirements. First, the applicant must register as a legal entity in South Africa. In addition, the project must achieve at least a Level 4 Broad-Based Black Economic Empowerment contributor status, subject to exemptions for Qualifying Small Enterprises under the Codes of Good Practice.
Where foreign investors incorporate in South Africa, they may receive recognition for equity-equivalent contributions if they cannot enter into partnership arrangements abroad. Moreover, all approved projects receive a 15-month grace period from the application date to meet B-BBEE requirements. However, applicants must submit a valid B-BBEE certificate when claiming the grant.
Projects that apply for other Department of Trade and Industry investment schemes may also apply for the CIP. However, they may not claim support for the same infrastructure items under multiple programmes. Similarly, projects that apply for funding under the Shared Economic Infrastructure Facility cannot receive co-funding for the same infrastructure activity through the CIP.
Grant Structure
The Critical Infrastructure Programme offers grants ranging from 10% to 30% of qualifying infrastructure development costs, capped at R50 million. The final percentage depends on the project’s score under the Economic Benefit Criteria.
Agro-processing businesses, as well as State-owned Aerospace and Defence National Strategic Testing Facilities, may qualify for higher support. In these cases, the CIP offers between 10% and 50% of infrastructure costs, also capped at R50 million.
Projects that reduce dependence on the national water or electricity grid may also qualify for grants between 10% and 50%. This support encourages sustainability and resource efficiency.
In distressed municipalities and State-owned industrial parks, the CIP may fund up to 100% of infrastructure costs, subject to the R50 million cap. Nevertheless, the programme encourages applicants to contribute according to their financial capacity.
Contact us for professional assistance in securing funding through the Critical Infrastructure Programme and ensuring full compliance with all regulatory requirements.
