SMMEs particularly affected by implementation delays THE RECENTLY LAUNCHED Export Marketing and Investment Scheme (EMIA) of the Department of Trade and Industry (DTI) is a definite improvement on its predecessor EMA (Export Marketing Assistance), says Christiaan de Lange, former Sacob manager of international trade.
But, he says, business in general has been concerned at the long delay in the implementation of EMIA which has had a negative effect on many businesses, especially the SMME exporters.
Under EMA, the size of the business was not considered, he says. With the new scheme there is a clear distinction between SMMEs, previously disadvantaged businesses and other companies. The purpose of EMIA is to partially compensate exporters for certain costs incurred in activities aimed at developing export markets and offers benefits in eight separate categories which cover a range of export related initiatives.
The qualifying criteria cover areas such as past export performance, future export potential, product and industry type and level of labour absorption in a given company or sector.
The scheme is also planned to encourage the formation of export councils that could enhance cluster studies, the aim being for businesses to organise themselves and rely less on the government for the provision of infrastructure for export promotion.
Associations of specific industry sectors will be helped to develop new export markets. Assistance will take the form of a matching grant of up to R400 000 in the first year and R200 000 in the second year of operation, to establish an export council.
