South africa: The Capital Projects Feasibility Programme
Thématique :
sud afrique
Published: 14 March 2008
In many countries worldwide (both developed and developing), the capital goods sector has been identified as an appropriate sector to target due to the valuable contribution towards development that it can potentially make.
The Programme is a cost-sharing scheme, providing a contribution to the cost of feasibility studies that are likely to lead to projects outside South Africa that will increase local exports and stimulate the market for the South African capital goods and services.
The Department of Trade and Industry (the dti) is pleased to announce the amendments to the Capital Projects Feasibility Programme (previously the SA Capital Goods Feasibility Study Fund). The revised programme, which is intended to facilitate feasibility studies likely to lead to projects that will increase SA exports, stimulate growth for the local capital goods and services sector and allied industries, comes into effect on 01 April 2008.
The value of the rebate for any qualifying feasibility study is capped at a maximum of R5 million.
This component is available to registered legal entities in South Africa and provides a rebate of 55% of the total costs of the feasibility study for projects in Africa, and 50% for those outside Africa.
In many countries worldwide (both developed and developing), the capital goods sector has been identified as an appropriate sector to target due to the valuable contribution towards development that it can potentially make.
The Programme is a cost-sharing scheme, providing a contribution to the cost of feasibility studies that are likely to lead to projects outside South Africa that will increase local exports and stimulate the market for the South African capital goods and services.
The Department of Trade and Industry (the dti) is pleased to announce the amendments to the Capital Projects Feasibility Programme (previously the SA Capital Goods Feasibility Study Fund). The revised programme, which is intended to facilitate feasibility studies likely to lead to projects that will increase SA exports, stimulate growth for the local capital goods and services sector and allied industries, comes into effect on 01 April 2008.
The value of the rebate for any qualifying feasibility study is capped at a maximum of R5 million.
This component is available to registered legal entities in South Africa and provides a rebate of 55% of the total costs of the feasibility study for projects in Africa, and 50% for those outside Africa.
Its aims are:
- to attract higher levels of domestic and foreign investment;
- to strengthen the international competitiveness of South African business;
- Stimulation of project development in Africa and in particular the Southern African Development Community (SADC) countries as well as support for the objectives of the New Partnership for Africa’s Development (NEPAD);
- To promote linkages with and development of small, medium and micro enterprises and black economic empowerment businesses
Effectively, the following key changes are being introduced:
- Although it should be aimed at achieving local content of 50% in the feasibility study and project in terms of goods and professional services, this percentage will remain at the discretion of the Adjudication committee
- The rebate will then proportionally be reduced, dependant on the proposed percentage of local content
- The provisions of the incentive will encourage companies to advance industry transformation through adherence to the requirements of Broad-Based Black Economic Empowerment as well as greater alignment with NEPAD initiatives
