Exporters should tune into benefits of dti incentives

With more than R5 billion available in incentive programmes from the Department of Trade and Industry (dti), shippers should be looking at whether they qualify and roping in expert help to access this money. While most of the programmes are aimed at the manufacturing sector and are governed by strict guidelines, they offer some major opportunities to companies that do qualify, said Dirk Harris of Sasfin Commercial Solutions in Cape Town. Addressing the Exporters’ Club Western Cape (ECWC) recently, Harris said there were several incentives available. These range from a Capital Investment Grant to upgrade capital equipment and expand productive capacity that will cover between 30% and 50% of the investment, to a Green Technology Upgrading Grant for investment in technology and processes that will make the production process greener – and that will also cover between 30% and 50% of the investment. “There is also the Enterprise-Level Competitiveness Improvement Grant for investment in the adoption of improved manufacturing practices, the Feasibility Studies Grant that goes towards developing a bankable feasibility study for new manufacturing projects, as well as the Cluster Initiatives Grant to help fund shared infrastructure, to name but a few.” He said with more than 20 programmes available over the next six years, it made business sense to investigate whether one’s company qualified for the incentive or not. “Furthermore, companies that service the manufacturing industry also qualify for the programmes – and if one looks at the amounts of money that can be claimed back on most of the grants, from 30-50%, it becomes extremely worthwhile to take part.” He advised businesses though to make sure they fulfilled the various criteria. “It can be extremely beneficial to one’s business, addressing matters such as cash flow – especially in the current financial environment.” He said exporters could also benefit from programmes such as the Export Marketing and Investment Assistance Scheme that was aimed at stimulating the country’s exports. “Through these schemes companies can take part in international fairs and market their products to a much wider audience as the grant covers airfares to travel abroad, the transport costs, all exhibition-related costs, as well as providing a subsistence allowance for the exporter while at the fairs.” He said smaller companies that did not have access to marketing budgets could especially benefit from these grants and should take the time to investigate the various offerings available. “Most of these grants are really aimed at developing the export market by offering much-needed support to exporters,” said Harris. CAPTION Dirk Harris … ‘More than 20 programmes available over the next six years.’