Dectra Newsletter - 18 November 2015

18 November 2015

Dear Clients, Colleagues and Associates

The year 2015 has proven to be quite a disaster for industrialists hoping for financial support from the DTI.

To start off, DTI got rid of hundreds of MCEP applicants by applying new rules to old applications. And to add insult to injury, they rejected a few hundred more by closing the scheme prematurely due to a shortage of funds. All of this as if it is not bad enough that the promised launch of the Revised MIP after two years has still not materialised despite a promised delay of only 3 months!

Amidst these negative developments, one wonders what has happened to efficient administration, sound management and above all, the ethics of government officials.

Much has been written and said about these developments and there are even initiatives going to try and persuade DTI to honour their obligation towards applicants with long outstanding applications. Let's hope for the best.

Where to now?

As a result of the closure of first the MIP in late 2013 and now the MCEP, there is very little left that would support an investment in a new or expanding industrial project. However, there is the promise that MCEP will open again on 1 April 2016, funds permitting, and there is still a shimmer of hope that the revised MIP will be launched sometime in the future. So, if you have a project in the pipeline, then let's discuss tactics now and make sure you're ready for such eventualities.

There are also several other programs that are still running and that offer valuable support. They are mostly low volume programs and we find the levels of efficiency are much better in these programs than with the high volume programs such as MCEP.

Here is a quick list, with short summaries provided in the attachment.

  1. Section 12i Additional Tax allowance for new and expanding manufacturing projects (Industrial policy projects).
  2. Productivity Incentive for textiles manufacturers (PI)
  3. Aquaculture Development Enhancement Program (ADEP)
  4. Export Marketing and Investment Assistance (EMIA)
  5. Automotive Investment Scheme (AIS, P-AIS and MHCV-AIS)
  6. Critical Infrastructure Program (CIP)
  7. Film and Television Production Incentives

Five star service

If you have ever wondered about the value of an incentives consultant, please read the news article at the link below regarding one of our clients, Renlaw. http://www.netwerk24.com/Sake/Entrepreneurs/Pa-en-seun-het-skerp-sakevernuf-20151105

Do not hesitate to contact us if you would like to discuss your plans.

Best Regards,
Izak du Toit

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