The manufacturing sector in South Africa ranks among the top three multiplier sectors for value addition, job creation, export earnings, and revenue generation. Moreover, South Africa has developed an established and diversified manufacturing sector that demonstrates resilience and competitiveness in the global economy. The Department of Trade, Industry and Competition (dtic) offers the Manufacturing Support Programme (MSP) to stimulate growth and development in this sector. Specifically, the MSP encourages investment in new or expanding manufacturing projects. These projects must generate and sustain employment, promote transformation, and support localisation.
Furthermore, the grant targets South African registered entities engaged in manufacturing under Standard Industrial Classification (SIC 3). Consequently, businesses that meet the criteria can leverage this incentive to strengthen operations, expand production, and enhance competitiveness. Dream Team Capital provides expert guidance to help South African businesses prepare and submit successful applications for the MSP grant. By partnering with us, companies can navigate the application process efficiently, ensuring compliance with all requirements and increasing the likelihood of approval.
The Objectives of the Manufacturing Support Programme Business Grant include:
- Promoting operational efficiency and competitiveness in start-up or expansion manufacturing projects;
- Encouraging transformation through supporting enterprises owned by black individuals, women, youth, and individuals with disabilities;
- Creating and sustaining employment; and
- Promoting localisation through using locally produced inputs/raw materials and machinery directly related to production.
The Manufacturing Support Programme grant supports its objectives by helping businesses improve competitiveness, adopt green technologies, enhance resource efficiency, and expand production capacity or launch start-up projects. Furthermore, it encourages innovative solutions that strengthen the overall manufacturing sector.
The Manufacturing Support Programme Offers:
- For eligible projects, a reimbursable grant of up to 20% is available. Furthermore, the maximum grant offering reaches R10 million over a two-year investment period, and the final claim must be submitted within six months after completing the last approved milestone.
- Additionally, the DTIC provides a 30% reimbursable grant for projects that are 51% owned and managed by women, youth, or individuals with disabilities, thereby promoting inclusivity and empowerment.
- For applicants that require competitiveness improvements, the grant related to consultant fees and costs is available; however, it does not exceed R1 million.
The grant can be utilised for combination of investment costs including:
- Machinery and equipment;
- Tools, dies, and jigs;
- Raw materials;
- Commercial vehicles; and
- Buildings.
For more information on the Manufacturing Support Programme (MSP) – Contact DTC
