DTI: one-stop investment shop
The Department of Trade and Industry (DTI) provides a one-stop shop for investors, offering a variety of services to those interested in conducting business in South Africa – ranging from details on how to do business in the country to the different forms that businesses can take.
Services for international investors include:
- Investment information: opportunities, incentives, regulations, policies, strategic sectors.
- Investment marketing: local and foreign marketing initiatives.
- Business facilitation: visas, investment missions, intergovernmental co-ordination, relocations, business introductions, black economic partnerships, financing and incentives.
- Outward investment: connections to other African investment promotion agencies, project financing, deal structuring.
A chief objective of the DTI is to boost investment in South Africa. It works to encourage beneficial environments for investors and exporters via investor-friendly policies and incentives.
While investment opportunities abound in all sectors of the economy, the DTI concentrates on those sectors in which South Africa has strong competitive advantages.
The unit within the DTI which is dedicated to this is Trade and Investment South Africa, which aims to increase South Africa’s export capacity as well as support direct investment flows. It is also responsible for managing the DTI’s network of foreign trade offices.
-Manufacturing Investment Programme
A cash grant for locally based manufacturers who wish to establish a new production facility, expand an existing facility, or upgrade an existing facility in manufacturing industries.
Tourism Support Programme
An investment incentive grant to support the development of tourism enterprises, simulate job creation and encourage the geographical spread of tourism investment throughout South Africa.
Foreign Investment Grant
This grant seeks to compensate qualifying foreign investors for the cost of moving new machinery and equipment from abroad to South Africa.
Critical Infrastructure Fund
The Critical Infrastructure Fund is a cash grant for projects designed to improve critical infrastructure in South Africa.
Industrial Development Zones (IDZ)
These purpose-built industrial estates are linked to international ports that leverages fixed direct investments in value-added and export-oriented manufacturing industries.
The Location Film and television production Incentives
This incentive programme consists of a large budget film and television production rebate scheme.
Export Marketing and Investment Assistance Scheme (EMIA)
The EMIA scheme compensates exporters in respect of activities aimed at developing export markets for South African products and services, and to recruit new foreign direct investment into South Africa.
The Business Process Outsourcing and Offshoring (BPO & O)
The BPO & O investment incentive comprises an investment grant and a training support grant towards costs of company-specific training.
Automotive production Development Programme
The APDP programme has 4 key elements, a tariff reduction freeze from 2013 until 2020, a local assembly allowance, production incentives and an automotive investment allowance.
Automotive Investment Scheme (AIS)
The Automotive Investment Scheme aims to grow and develop the automotive sector by increasing plant production volumes and strengthening the automotive value chain.
Section 12i of the Income Tax Act
This is a deductible cost allowance that in effect reduces the taxable income of a business.
Research and Development (R & D) Tax Incentives Programme
This incentives consists of a deduction of 150%, in respect of eligible expenditure on suitable scientific or technological R&D undertaken by taxpayers within South Africa, and an accelerated depreciation of assets for scientific and technological R & D over 3 years, at a rate of 50:30:20, starting from the year of assessment, in which the asset is brought to its first use.
Support Programme for Industrial Innovation (SPII)
The support Porgramme for industrial innovation (SPII) is designed to promote the technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and / or processes.
Clothing and Textile Competitiveness Programme (CTCP)
The incentive programme provides investment support to both local and foreign owned entities, by offering a cost-sharing grant incentive of 75% of project cost on cluster projects, and 65% of project cost for company projects.
Co-operative Incentive Scheme (CIS)
The Co-operate incentive Scheme (CIS) is a 90:10 matching cash grant for registered primary c- operatives (a primary co-operate consist of 5 or more members).