Incentives

Incentives

newcastle municipality 200

Incentives are negotiable and all interested parties' requests will be evaluated

Some incentives are designed for small companies, some for large companies, and yet others for developers and non-profit organisations. While some of these proposed incentives will be administered by the Newcastle municipality, others will take the form of grants from national government.

 

Developers:

Specific incentives from the Newcastle municipality based on negotiations between the developer and the municipality. These include services such as land leases and rental, electricity rebates, water, building plans, refuse removal and bulk services connections. 

 

Non-profit Business Sector Organisations:

Sector-specific Assistance Scheme, implemented by the Department of Trade and Industry (DTI), encourages industrial sectors prioritised by the DTI to pursue export markets.

The benefits include:

  1. R50,000 grant for establishing an export council
  2. Grant for marketing, advertising and publicity on a 2:1 basis (max R1m)
  3. 80:20 cost-sharing grant for projects to develop particular sectors
  4. Travel and accommodation costs (max R1,5m)

Beneficiaries are non-profit business sector organisations, such as Export Councils, Joint Action Groups and industry associations; qualifying sectors include pre-qualified ICT services

 

Tenants:

Science and Technology R&D Incentive, implemented by the Department of Science and Technology, is designed to encourage private sector investment in scientific and technological research and development with the aim of helping South Africa achieve a target for R&D expenditure of 1% of gross domestic product.

 

Companies undertaking research in collaboration with educational institutions:

Technology and Human Resources in Industry Programme, administered by the DTI, aims to boost South African industry by supporting research and technology development, and enhancing the numbers of appropriately skilled people. The benefit is a 50:50 cost-sharing grant, to a maximum of R8 million per annum, across any number of projects.

 

Small private sector companies/SMMEs:

Technology Venture Capital Fund, established by the DTI and managed by the Industrial Development Corporation, aims to provide support and seed capital for the commercialisation of innovative products, processes and technologies. The funds aims to increase the number of economically productive companies in South Africa, and thus contribute to economic growth and international competitiveness through innovation and technological advancement. SMMEs stand to benefit from the fund and this is aimed at businesses renting space within the Techno Hub.

Support Programme for Industrial Innovation (IDC) provides financial assistance for the development of commercially viable, innovative products and/or processes and facilitates commercialisation of such technologies. The Product Process Development Scheme offers grants of up to R2 million, while the Matching Scheme offers grants of up to R5 million.

Technology Programme (Technology Transfer Division, Small Enterprise Development Agency) is part of an over-arching strategy to consolidate small business support activities. It is applicable to small, registered South African companies and provides 50% of the cost of approved tools, machinery and equipment to a maximum of R800 000, as well as an 80% grant for approved training and business development services to a maximum of R200 000.

 

Large private sector companies:

Partners in Industrial Innovation (IDC), suitable for large projects, provides financial assistance for the development of commercially viable, innovative products and/or processes and to facilitate commercialisation of such technologies. The minimum grant is valued at R10 million, and if the project is successful the grant is repayable under pre-negotiated conditions.

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