Archives: May 23, 2022

Workplace Challenge Programme Workplace Transformation Toolkits

The Workplace Challenge Cluster Programme utilises five Workplace Transformation Toolkits to effect development within companies participating Workplace Challenge clusters.

• Management system toolkit
  • The Management System of the Workplace Transformation Toolkit aims at helping organisations to make a successful transition to a culture of continuous improvement. The Management System teaches participants to apply the principles of plan–do–check–act or plan–do–check–adjust (PDCA) – to plan, to implement according to plan, to review plans, to take corrective actions, and to celebrate achievements. It teaches participants about consistent and regular communication and to start off on the right foot by having a purpose and a vision for the transformation of their workplace.
• Goal alignment toolkit
  • Performance is only possible if common goals are owned and pursued by all teams. Goal alignment is often the first Toolkit implemented by the WPC Coaches. The toolkit aims to encourage communication and aligning goals and targets throughout the organisation, down to first-line team level; aligning top-down and bottom-up management; creating effective organisation structures so that everybody will know where they fit in and what they are responsible for.
• Cleaning and organising toolkit
  • Cleaning and organising is one of the most important foundations for continuous improvement. Cleaning and organising is about making work easier and creating a functional, visually organised workplace of which people are proud. A sustained, high level of implementation supports high levels of safety, quality and productivity, low cost and fast, on-time delivery. Cleaning and organising is also known as 5S, sort and discard: set in order: shine: standardise and self-discipline.
• Teamwork toolkit
  • Teamwork is one of four foundation elements of the Workplace Transformation Toolkit. It aims at creating an understanding of the importance and role of teamwork in workplace and business improvement; it helps to create a culture of continuous improvement; the toolkit equips teams with the knowledge to implement small group activities and Kaizen projects; it equips teams with the knowledge to apply basic problem solving techniques
• Leadership toolkit
  • The aim of leadership is to strengthen the skills of every first-line manager to develop, lead and inspire productive teams to ensure that all team members are developed to their full potential. The managers of team leaders play an important role in the successful implementation WPC programme, they need to coach their team leaders on an ongoing basis, on the skills introduced by the WPC Programme, as well as provide support for implementation of other elements of the Workplace Transformation Toolkit.
• Green productivity toolkit
  • The WPC Coaches use the Green Productivity Toolkit to coach participating enterprises to implement Kaizen projects aimed at improving their own carbon footprint; water footprint; chemical footprint; paper footprint and human energy footprint

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Workplace Challenge Programme incentive.

• The Technology and Human Resource for Industry Programme (THRIP) is intended to leverage collaborative partnerships between government and industry (working with academia), for applied research and development projects in science, engineering and technology on a cost-sharing basis, to produce highly skilled human resources and technology solutions, for improved industry and enterprise competitiveness.

The objective of the programme is to develop new technologies for industry application and subsequent industrialisation and commercialisation, through applied research and development. The objective will be achieved by implementing amongst others:

• Improved knowledge exchange and technology transfer through increased interaction and mobility among researchers in Higher Education Institutions (HEIs) and Science, Engineering and Technology Institutions (SETIs) as well as technology personnel, in South African industries;
• An increase in investment by industry and government, in applied research and technology development; and
• Technology transfer and product or process improvement or development, through applied research collaboration between enterprises (large and small), HEIs and SETIs.

The incentive is awarded for the following:

• Applied research and innovation projects as defined in Section 5 below.

In pursuing its objectives, THRIP will prioritise the following:

• Support for projects within the priority sectors for development as identified by the dtic and aligned with master plans where new technology innovations will increase local content supply and employment;

• Achieving transformation with respect to beneficiaries from THRIP, specifically
• in terms of:
• Nationality and race of students; and/or;
• Previously disadvantaged higher education institutions; and
• Strengthening participation of Black-owned enterprises.

Nature of Qualifying Projects

All projects must meet all criteria stated below in order to qualify for financial support from THRIP:

• The project must have clearly defined scientific and technology outputs, including human resource outputs, expected for each year of support; and

The project must demonstrate all the following:

• Causality [demonstrable output(s) and outcome(s)];
• Implementation plan (the way in which the output or outcomes will be used by the applicant);

The project must be applied research of which the output/s will directly benefit the applying entity in its competitiveness and business activities (no basic research will be considered).

The project application must clearly demonstrate the degree of innovation (new solution/product and/or improved solution/product) and level of technology readiness

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Technology and Human Resource for Industry Programme incentive.

Criteria for Support Programme for Industrial Innovation Support:

• Development should represent significant advance in technology;
• Development and subsequent production must take place within South Africa;
• Intellectual Property to reside in South African registered company;
• Participating businesses should (must) be South African registered enterprises;
• Government funded institutions (e.g. CSIR) do not directly qualify for support but may participate as subcontractor(s) and;
• No simultaneous applications from the same company.

The qualifying costs in Support Programme for Industrial Innovation are as follows:

• Personnel Related Costs;
• Travel Expenses (defined maximum);
• Direct Material;
• Capital Items and Tooling;
• Software (not general software);
• Documentation;
• Testing and Trials;
• Licensing Costs;
• Quality Assurance and Certification;
• Patent Costs; and
• Subcontracting and Consulting.

Non Qualifying Projects/costs:

• Projects receiving other government funding;
• Military projects; and
• Where SPII contribution is not significant (at least 20% of total project costs).
• Production and commercialisation related;
• Marketing and administrative costs;
• Product/process development for a single client;
• Basic and applied research;
• Projects which, at the time of application, are more than 50% (70% for PPD) complete; and
• All costs incurred prior to submitting a duly completed application.

General Criteria

• The major proportion of the development project (refer to 7.4.5) and subsequent manufacturing of the product must take place in South Africa. This applies to the production envisaged at the time of evaluation, as reflected in the sales projections included in the report to the SPII Adjudication Committee.
• All Intellectual Property (IP) rights in terms of the Intellectual Property Rights from Publicly Financed Research and Development Act, 2008 (Act No. 51 of 2008) (“the IP Act”), as amended from time to time shall, shall reside in a South African-registered company.
• In the case of the SPII Product Process Development Scheme, IP rights, as defined in the IP Act, that have been developed as a result of a project supported by the SPII Product Process Development Scheme, must reside in a South African-registered company from the initiation of development activity until three years after the completion of the project. (the completion date is the date of payment of the final milestone).
• Products developed with support from the SPII Product Process Development Scheme must, where applicable, comply with relevant national and international standards.
• Only one application may be considered from any company at a time. Subsequent applications will only be considered on completion, cancellation or withdrawal of a project.
• The applicant must submit a valid South African Revenue Service Tax Clearance Certificate at the time of application and for each milestone payment request.
• Only applications prepared by the applicant will be accepted for evaluation. No consultant or third party prepared application will be processed unless a formal declaration from the applicant is provided. Where applicable, an example of the application form completion will be provided by the SPII administrators

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Support Programme for Industrial Innovation grant.

• The objective of Strategic Partnership Programme to encourage large private sector enterprises in partnership with Government to support, nurture and develop SMEs within the partner’s supply chain or sector to be manufacturers of goods and suppliers of services in a sustainable manner.
• The intention of the programme is to support Broad-Based Black Economic Empowerment (B-BBEE) policy through encouraging businesses to strengthen the element of Enter and Supplier Development (ESD) of the Codes of Good Practice.
• Strategic Partnership Programme will be available on a cost-sharing basis between Government and the strategic partner(s). It is available for infrastructure and business development services necessary to mentor and grow enterprises.

The strategic partner must be:

• A taxpayer in good standing and must be in this regard provide a valid tax clearance certificate.
• In compliance with the requirements of B-BBEE and must provide a valid certificate of B-BBEE Compliance.
• 60% of total SME’s supported by the strategic partner programme should at least be 51% owned by black south African citizen(s).
• Committed to the strategic partnership by having a corporate interest in supplier development and must in this regard provide a market access plan for the SME’s to be developed or off-take agreement(s).

Grant Disbursement

• The grant will be disbursed quarterly or bi-annually based on the actual SMEs supported subject to approved disbursement schedule and actual expenditure incurred with supporting documents.
• The first claim becomes due not later than six (6) months after the date of receiving an approval letter from the dti, and will be reimbursed based on actual expenditure incurred.
• Successive claims thereafter are due three (3) months (quarterly) or six (6) months (bi- annually) after the submission of last claim as approved in the disbursement schedule.
• Failure to submit claims by the due date, the approval will be automatically terminated and no further claim/s will be processed.
• The grant will be disbursed subject to satisfactory verification of expenditure incurred by the strategic-partner and this may include audit confirmation and a physical on-site visit by the dti.
• The claim form should be accompanied by relevant documentation as required by the dti on the approval letter as indicated in paragraph 12.3.
• the dti reserves the right to recoup any monies already disbursed either in total or in part informed by circumstances and conditions deemed necessary to cancel the project.

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for Strategic Partnership Programme.

Sector Specific Assistance Scheme Mandatory Requirements

• A fully completed application form, available on the dtic website.
• Incomplete, non-compliant and late applications will be rejected at receiving stage.
• The project coordinator/applicant must provide a copy of their structured export development programme for the emerging exporters included in their application.
• The three comparable quotations must be sourced from B-BBEE compliant service providers (excluding international service providers).
• All applications for missions must be submitted four (4) months prior to the event date and for exhibitions, at least three to eight (3 – 8) months prior to the event date.
• All benefits except for digital event sample courier costs, will be paid up- front to the approved service providers and will include all qualifying expenditure as approved by the EMIA/SSAS adjudicating committee such as air tickets, ground transport, accommodation, exhibition costs, brochures/marketing material, transport of samples and specialised training.

LIMITATIONS AND EXCLUSIONS

• Assistance is limited to registered qualifying entities.
• Expenses related to Sole Proprietors, Consultants and officials or representatives of Provincial Investment and Local Economic Development Agencies, Export Councils and SEDA, are excluded.
• Qualifying emerging exporters may participate four (4) times in a calendar year and cumulatively, up to twelve (12) times, in this SSAS incentive.
• The focus is on internationally and locally recognised exhibitions/virtual trade event and mission participation, with the aim of developing emerging exporters.
• A minimum of ten (10) to a maximum of twenty (20) entities, will be assisted to participate in a qualifying event.
• The costs of subsistence allowance, visa and cost of duties on products sold at the physical exhibition/virtual trade event, are excluded from the qualifying expenditure.
• The assistance is not available for physical events taking place in the period 15 December up to and including 5 January of each year (virtual trade excluded).
• The project coordinator and the participants, will be jointly and severally liable for costs incurred for non-participation at the event.
• The project coordinator will cover any additional costs incurred by the service provider/s, that were not approved by the dtic.
• Events that cannot be verified by the dtic, will not be considered.
• Only the lowest quotation from service providers will be considered.
• Consultants will not be allowed to submit applications or claims on behalf of the coordinators/applicants. Applications or projects facilitated by a consultant, will be rejected.

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Sector Specific Assistance Scheme.

The Production Incentive Programme (PIP) is a cash-based tax-free incentive grant available to those companies engaged in:

1. Clothing manufacturing
2. Textile manufacturing
3. Footwear
4. CMT and
5. Non-Automotive Leather Industries

Production Incentive Programme (PIP)

The PIP aims to help the industry upgrade its processes, products and people. This is expected to move the industry up the value chain to activities that are far more sustainable than competing against “sweatshop” labour practices and pervasive government subsidisation in other developing countries. The PIP is meant to encourage and support upgrading and competitiveness improvement programmes in the sector.

The PIP consists  of an Upgrade Grant Facility, which is meant to focus on competitiveness improvement and an Interest Subsidy for Working Capital Facility which is meant to support working capital requirements resulting from past and future upgrading interventions The PIP is a market-neutral incentive resulting in an incentive benefit equal to 7.5% for the year based on a company’s Manufacturing Value Addition (MVA). The MVA calculation must be based on audited financial statements not older than 15 months.

It is a cash based, tax free incentive grant, focused on textile / footwear / CMT and
leather manufacturers to improve overall competitiveness in these industries.

• The Production Incentive is aimed at structurally changing the Clothing, Textiles, Footwear, Leather & Leather Goods manufacturing industries by providing funding assistance to invest in competitiveness improvement interventions.

• The Production Incentive consists of a combination of an Upgrade Grant Facility, which is meant to focus on competitiveness improvement and an Interest Subsidy for Working Capital Facility which is meant to support working capital requirements resulting from past and future upgrading interventions.

• The MVA calculation must be independently verified by the company‟s auditors and the auditors‟ confirmation letter submitted to the CTCP Desk together with the benefit application.

• A confirmation of the approved Benefit Ceiling will be issued to qualifying applicants. The amount available under the Benefit Ceiling can only be accessed on presentation of proof of qualifying expenditure to the satisfaction of the CTCP Desk, and/or the acceptance of liability for interest charges on a working capital loan obtained from the IDC or any reputable financial institution.

The PIP is available to the following (collectively referred to as the “the sector”):

• Clothing manufacturers;
• Textile manufacturers;
• Cut, Make and Trim (CMT) operators;
• Footwear manufacturers;
• Leather goods manufacturers and
• Leather processors (Specifically for Leather Goods and Footwear industries).
• Design Houses (Provided the design house partners with one or more CMT‟s)

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Production Incentive.

• The Manufacturing Competitiveness Enhancement Programme incentive funds small scale manufacturing, market entry and market development

• The Manufacturing Competitiveness Enhancement Programme is a support scheme which offers manufacturing companies incentives to raise their competitiveness and retain jobs. It has a budget of R5.8-billion over a three-year period.

• The Manufacturing Competitiveness Enhancement Programme comprises two sub-programmes: the Production Incentive (PI) and the Industrial Financing Loan Facilities which will be managed by the dtiand the Industrial Development Corporation respectively.

Production Incentive

The Production Incentive is the largest component of the MCEP (80% by Rand value). Calculation of MCEP credits for the Production Incentive for each enterprise will be up to 25% of the manufacturing value added.

Applicants may apply their credits to a combination of any of the following five sub-components of the Production Incentive:

• Capital Investment grant;
• Green Technology and Resource Efficiency Improvement grant;
• Enterprise-Level Competitiveness Improvement grant;
• Feasibility Studies grant; and
• Cluster Interventions grant.

Industrial Financing and Loan Facilities

The Industrial Financing and Loan facilities comprises two components i.e. Pre and post-dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund.

• Pre/Post-dispatch Working Capital Facility offers a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%.
• Industrial Policy Niche Projects Fund: projects identified by the dti sector desks and IDC’s Strategic Business Units that focus on new areas with the potential for job creation, diversification of manufacturing output and contribution to exports, that would otherwise not be candidates for commercial or IDC funding, may be eligible for an MCEP grant that may be structured as part of the borrower’s equity contribution

Going forward, incentive and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional

The Innovation Funding and Pre-Commercialisation Support Division Assists with Innovation and Funding Technology Instruments

The Innovation Funding and Pre-Commercialisation Support (IFPCS) Division supports the development and exploitation of technology innovations by enabling and facilitating the conversion of technology ideas into enterprises. This is done by the funding the development of technology and the preparation of the technologies developed for commercialisation or use.

The innovation and funding technology instruments strive to de-risk technological innovations as they mature through the Technology Readiness Levels (TRL) scale. Once the concept for a technology idea has been proven and the application assessed and approved, the IFPCS Division provides financial support to the technology development using the Technology Development Fund (TDF) for further development or the Commercialisation Support Fund (CSF) for projects that have been demonstrated and are now ready and participate in the market. All funded projects are monitored during and after development while providing other non-financial support which varies from project to project. Non-financial support may include linking TIA funded companies with other funders such as the IDC to fully commercialise their technologies. The IFPCS Division seeks to drive the following initiatives in a bid to strengthen the programmes offering:

• Upstream integration;
• Downstream integration;
• Concurrent innovation;
• Development of new funding instruments; and
• Patent Maintenance Support Fund (PMSF).

The IFPCS Division has various business units that respond to the biotechnology sector in supporting technology development. The sub-programmes’ activities are aligned to key DST strategies namely the Bio-Economy Strategy, DST’s Ten-Year Innovation Plan (including addressing the DST Grand Challenges), and the National Research and Development Strategy. Various initiatives have been enacted to support technology development, including:

• Advanced Manufacturing (AM);
• Agriculture;
• Energy;
• Information Communication and Technology (ICT);
• Health;
• Natural Resources;and
• Workout and Restructuring.

Going forward, incentive and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining

The Global Business Services incentive is credited by the industry for incentivising 80% of the employment growth in the Global Business Services sector. Notwithstanding the significant job losses in the South African economy in 2020, according to the industry body BPESA, the Global Business Services sector managed to create 17 354 new jobs servicing the international market largely in retail; utilities and energy; and telecoms industry verticals. 87% of these new jobs were for youth (aged 18-34 years). The country has built an international reputation as a high quality, cost-effective location for outsourced business services, ranked the 2021 top location for outsourced services, having captured the second-place position for three consecutive years. Key to the cost-effective value proposition, is the role of the Global Business Services incentive in reducing the operating costs for new jobs in this sector.

An attractive cash grant for creation of new offshore jobs in South Africa

The Global Business Services incentive targets investors that are looking to locate their shared services centres, customer service centres or centres of excellence in South Africa to service offshore markets. The incentive applies for both captive and outsourced operations. With as little as a commitment to create 30 new jobs³ targeted at youth, within three years and a three-year fixed-term contract for offshore activities, a project could qualify for the Global Business Services cash grant.  

Global Business Services applicants are required to start or expand existing operations in order to engage in global business services

Benefits

• Slight differential on the base incentive offered at each level as well as expected job creation

• Bonus incentive ranges between 20%-30% for both incentive however there is a slight differential on the job creation above minimum thresholds

Global business services include:

• Finance and accounting services
• Human resources function
• Contact centres
• Back office processes
• IT and technical services

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Global Business Services Incentive.

The South African Government offers a package of incentives to promote its film production and post-production industry. The incentives consist of the;

• Foreign Film and Television Production and Post-Production Incentive;
• SA Film & TV Production and Co-production;
• South African film and television production incentive
• The South African Emerging Black Filmmakers Incentive;

Foreign Film and Television Production and Post-Production Incentive;

To encourage and attract large-budget films and television productions and post-production work that will contribute towards employment creation, enhancement of international profile, and increase the country’s creative and technical skills base.

Benefits:

Production and post-production

• Shooting on location in South Africa, the incentive will be calculated at 25% of Qualifying South African Production Expenditure (QSAPE), with a cap of R50 million.
• An additional incentive of 5% of QSAPE is provided for productions shooting and conducting post-production in South Africa, and utilising the services of a black-owned service company.

Post-production

• Conduction post-production in South Africa, the incentive is calculated at 20% QSAPPE
• An additional 2.5% of Qualifying South African Post-Production Expenditure (QSAPPE) is provided for spending at least R10 million of post-production budget in South Africa (22.5% cumulative).
• Foreign post-production with QSAPPE of R15 million and above, the incentive is calculated at 25% of the QSAPPE.

SA Film & TV Production and Co-production;

To support official co-productions and contribute towards employment opportunities in South Africa.

Benefits: 

• The rebate is calculated as 35% of QSAPE.
• An additional 5% of Qualifying South African Production Expenditure (QSAPE) is provided for productions hiring at least 30% of black South African citizens as HODs and procuring at least 30% of QSAPE from 51% South African black- owned entities which have been operating for at least a period of one year; with a cap of R50 million per project.

South African film and television production

To support the local film industry and to contribute towards employment opportunities in South Africa.

Benefits:

• The rebate is calculated as 35% of QSAPE.
• An additional 5% of QSAPE is provided for productions hiring at least 30% of black South African citizens as head of departments (HODs) and procuring at least 30% of QSAPE from 51% South African black-owned entities which have been operating for at least a period of one year; with a cap of R50 million per project.

The South African Emerging Black Filmmakers

To nurture and capacitate emerging black filmmakers to take up big productions and contribute towards employment opportunities.

Benefits:

• A rebate of 50% on the Qualifying South African Production Expenditure (QSAPE).
• The costs for the purchase of key production equipment may qualify once-off under this incentive programme to a maximum cost-sharing incentive of R2 million.

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the film Incentive.