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DTI announces ‘tightening’ of manufacturing incentive scheme

4/5/2014

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Trade and Industry Minister Dr Rob Davies has approved the newly revised Manufacturing Competitiveness Enhancement Programme (MCEP) guidelines for implementation from April 1 in a bid to ‘tighten up’ the potentially imbalanced awarding of manufacturing support grants.This followed consultation with various stakeholders last year, which the Department of Trade and Industry (DTI) said had “necessitated the amendments” of the current MCEP guidelines.
During these engagements, the DTI said it discovered that the highest percentage grant benefit of 61% was being awarded to larger enterprises while only 39% of the grant went to small and medium-sized enterprises.

“After this, it was decided that some ‘tightening measures’ were required so that the MCEP can support as many entities as possible,” the DTI said in a statement.

An analysis of the total grant approved also indicated that 4% of the total grant commitment went to small entities with assets below R5-million, while 10% went to those with assets between R5-million and R30-million.

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