Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

South Africa Investment Environment

VIEWS: 15 PAGES: 40

									           SOUTH AFRICA’S
      INVESTMENT ENVIRONMENT

SOUTH AFRICA’S INVESTMENT
      ENVIRONMENT


        TRADE AND INVESTMENT
   TRADE AND INVESTMENT SOUTH AFRICA
            SOUTH AFRICA
   A division of the Department of Trade and Industry
                                                        August 2007
         A division of the Department of
               Trade and Industry

                  November 2005
South Africa at a glance
         •Area 1,219, 090 km2
         •Population 44,8m
         •Currency R1 = 100 cents
         •Time GMT + 2 hrs
         •Head of the State: President Thabo M Mbeki
         •11 Official languages with English the business language
         •Total GDP: 2006 R1 726 bn        (US$ 255 bn)
         •GDP 2006 per capita: R35 994     (US$ 5 324)
         •Real GDP Growth: 5,0 (2006)
         •Inflation (CPIX): 4.6% (annual 2006 average)
         •Exports: Tourism, minerals, diamonds, metals and
         metal products, food products & automotive components.
         •Main trading partners: Germany, USA, China, Japan &
          the UK.
SADC and South Africa




            ANGOLA
                   Macro-Economic Policy
Macroeconomic interventions to accelerate growth and ensure
                     social inclusion
              Higher public sector investment
              Reduce the cost of doing business
              Expand public works & micro-credit programmes
              Improve state capacity to provide economic services
              Strengthen social cohesion

                     Growth in 2005 was 4,9%

                  Broad framework of further steps needed to raise the
                   range of growth to higher levels
                  Proceeds from premise that positive factors in the
                   economy afford society the possibility to pursue for
                   better economic performance.
              Achieving sustained and balanced growth

                 A tested and         Abundant mineral        Established
Economic                                                      industrial &
                 reliable legal           & natural
advantages          system               resources              financial
which                                                        infrastructure
create a
positive            Cheap                                A relatively large
                  electricity                              labour force
environment


Further, ‘[c]onsistently prudent macroeconomic policies have
succeeded in reducing the fiscal deficit, stabilising debt
levels, and lowering inflation and interest rates’; and the
country ‘stands out among its peers due to its democratic and
transparent institutions and entrenched political stability…’
                                  Standard and Poor’s, August 2005
     Macro-Economic Stability
                                               Fiscal Policy


450000

400000

350000

300000

250000                                                                                                                          Gov. Revenue
200000                                                                                                                          Gov. Expenditure

150000

100000

50000

    0
                              1993
                                     1994
                                            1995
                                                   1996
                                                          1997
                                                                 1998
                                                                        1999
                                                                               2000
                                                                                      2001
                                                                                             2002
                                                                                                    2003
                                                                                                           2004
                                                                                                                  2005
                                                                                                                         2006
         1990
                1991
                       1992




                                                                                                                                                   Source: SARB
                    South African Economy
                           1994       2004        2006

GDP (billions)             R 482      R 1 374     R 1 726
                                      US$ 213     US$ 255
GDP per capita             R 12 507   R 29 422    R 35 994
                                      US$ 4 561   US$ 5 324
Merchandise exports        R 69, 8    R 281,8     R 398,5
(billions)                            US$ 43,6    US$ 58,9
Total Foreign Debt / GDP   21,8%      20,2%       22,4%
GDP Growth                 3,2%       3,7%        5,0%

Unemployment               20%        26,5%       25,5%

Inflation (CPIX)           9% (CPI)   4,3%        4,6%

Prime Rate                 15,75%     12%         12,5%
                                                          Source: SARB
    SA’s Export Performance by
          Country - 2006
                    Rb     US$b
1. Japan            41.3   6.1
2. United States    41.2   6.1
3. United Kingdom   31.7   4.7
4. Germany          26.8   3.0
5. Netherlands      18.0   2.6
6. China            14.0   2.0
9. Switzerland      11.6   1.7
7. Belgium          10.2   1.5
8. Spain            10.0   1.5
10. Italy           9.3    1.4


                                  Source: SARS
Business Environment
      Infrastructure




                       Source: ABSA
                       SA’s Export Performance by
                                Country
Country                2005 (Rm)   2005 (US$m)
                                                 Country                2006 (Rm)   2006 (US$m)

Japan                   32,935.5       5,146.2   Japan                   40,833.0       6,380.2

United Kingdom          32,039.3       5,006.1   United States           40,205.7       6,282.1

United States           30,385.9       4,747.8   United Kingdom          31,291.6       4,889.3

Germany                 20,701.0       3,234.5   Germany                 26,354.1       4,117.8

Netherlands             14,187.5       2,216.8   Netherlands             17,261.5       2,697.1

Australia                9,663.4       1,509.9   China Ranked 6          13,584.6       2,122.6


Belgium                  8,713.9       1,361.5   Switzerland             10,214.5       1,596.0


Spain                    8,704.5       1,360.1   Spain                    9,975.5       1,558.7


China Ranked 9           8,387.0       1,310.5   Belgium                  9,721.8       1,519.0

Total exports to all                             Total exports to all
      countries        320,004.0      50,000.6   countries              380,884.3      59,513.2
                          SA-CHINA
                        Bilateral Trade

     60,000.0
     40,000.0
     20,000.0
Rm




           0.0
     -20,000.0   2002   2003               2004              2005    2006

     -40,000.0

                           Total Exports   Total Imports   Balance
                                                 SA-CHINA
                                               Bilateral Trade
                                                          Imports from China to SA 2006
Exports from SA to China 2006
                                                          Top 10 Products                            Rm      US$m
Top 10 Products                         Rm       US$m
                                                          H84: Boilers, machinery, etc            9,872.8   1,542.6
H26: Ores, slag and ash              5,416.1     846.3
                                                          H85: Electrical, electronic
H72: Iron and steel                  2,312.3     361.3          equipment                         8,643.8   1,350.6

H27: Mineral fuels, oils,                                 H62: Articles of apparel,
distillation product                 1,958.1     306.0          accessories,                      3,127.0    488.6

H76: Aluminium and articles                               H64: Footwear, gaiters and the like,
thereof                               665.8      104.0          parts                             2,846.9    444.8
                                                          H61: Articles of apparel,
H74: Copper and articles thereof      453.2       70.8          accessories, knit or              2,288.6    357.6

H75: Nickel and articles thereof      422.1       65.9    H90: Optical, photo, technical,
                                                               medical, etc                       1,591.9    248.7
H29: Organic chemicals                323.9       50.6
                                                          H94: Furniture, lighting, signs,
H84: Nuclear reactors, boilers,                                 prefab                            1,529.3    239.0
machinery                             316.6       49.5
                                                          H95: Toys, games, sports requisites     1,394.3    217.9
H51: Wool, animal hair, horsehair
yarn and                              309.4       48.3    H73: Articles of iron or steel          1,173.0    183.3
H71: Pearls, precious stones,                             H87: Vehicles other than railway,
metals, coins                         191.6       29.9          tramway                           1,162.3    181.6

Top 10 Products                     12,369.0    1,932.7   Top 10 Products                        33,629.9   5,254.7

Total Exports                       13,584.6    2,122.6   Total Imports                          46,693.2   7,295.8
              Business Environment
                  Legal and Financial Markets

•   World Class Legal Framework
     – Substantive legal framework particularly in commercial,
       labour and maritime law regimes
     – Advanced legislation relating to competition policy,
       copyrights, patents, trademarks, and disputes
     – Independence of judiciary is guaranteed by the
       Constitution

•   Financial System / Markets
     – Financial system is robust and well regulated
     – Four of South Africa’s banks are in the world top 500
     – The Johannesburg Securities Exchange (JSE) is the 17th
       largest in the world
     – South African commercial banks have wide presentation in
       Africa
                  Infrastructure Development
Overall government plans for infrastructure spending
 totals some R416 bn/ $ 59,4bn over the next 3 years
   Further allocations are envisaged going forward
   Such investment levels have not been seen before since 1994


50%     To be spent by the three spheres of govt


5%      To be spent through Public Private Partnerships


3%      To be spent by development finance institutions

40%     To be spent by State Owned Enterprises.
                         Infrastructure Development
                           Core national programmes of SOEs
                          R 150 bn/ $ 21,4bn in the next 5 years for
                          infrastructure investments and refurbishments,
                          raised from cash flow and off its balance sheet:
    70% - generation capacity
    30% - transmission and distribution: 6 metro Regional Electricity
     Distributors to be set up within next six months
    Rehabilitation of three power stations; plus the construction of two
     peaking plants (R15 bn/ $ 2,4bn)
R40bn/ $ 6,3bn for a range of core
projects – railways, ports, infrastructure
& operations and petroleum pipeline

 A further R8,5bn/ $ 1,3bn to be invested in SAA and other non-core projects
 Spoornet will spend some R8bn/ $1,3 bn on locomotives, wagons and
  equipment
 Funding options: divesting from non-core businesses, PPPs, own revenue,
  concessioning, borrowing and strategic equity arrangements
                       Infrastructure Development
                  Core national programmes of SOEs

    Water
Infrastructure          Some R19,7bn/ $ 3,1bn of water resource projects
                        planned
                             R3bn/ $ 0,5bn to be funded from the fiscus
                             Rest to be funded from cost recovery and
                              financial markets

   ACSA plans to spend R 19,3 bn/ $ 2,75bn by
                                                            Air Transport
    2010 in improving existing facilities particularly
                                                            infrastructure
    in Johannesburg and Cape Town
   In addition, the Dube Trade Port initiative
    includes a new airport in Durban.
                      INDUSTRIAL DEVELOPMENT ZONES
 IDZ’s are considered part of
 the Customs Territory of
 South Africa.
 SARS Customs will perform
 specific controls within the
 CCA to provide for Expedited
                                                       JIA
 Services
                                   Customs Territory
                                         of                      RCB
                                     South Africa




                                                                   Customs
                                                             Customs
                                   Coega                                Services
                                               ELN                Controlled
                                                             Secured
                                                                       Enterprises
An IDZ is located adjacent to a                                Area Area
port allowing importation of raw                                                     IDZ
materials, plant machinery &                                  Industry &     One
equipment; and the export of                                 Service Area    Stop
                                                                            Center
finished products;
                    East London IDZ




Multi-Level Car Terminal     Containerisation




Dry Dock & Ship Repair       Grain Elevator
Johannesburg International
       Airport IDZ
RICHARDS BAY IDZ
     NEW DEEPWATER PORT OF NGQURA




• 80,000 DWT Bulk Carriers      • 9 000 TEU Cellular Containership




• Inner Basin 16.5 m below CD
• Entrance Channel 18m
• 175,000 DWT Bulk Carriers
STRATEGIC GEOGRAPHIC POSITION TO
    GLOBAL SHIPPING ROUTES
                                              Freight growth future requirements
                                                                                                                                                           Includes Gauteng-Polokwane &
                                                                                                                                                                 Gauteng-Beitbridge

                                 Walvis Bay                                                                                                                  Projected Growth 2003
                                                                                                                                       Beitbridge                 to 2020 40%
                                                                                                                                 17
                                                                                                                                (12)                           Road       Rail
        Projected Growth 2003                                                                                        Lobatse                                   90%        10%
             to 2020 38%                                                                                                                                     Dominant Commodities
                                                                                                                                                            •Processed foods
         Road             Rail                                                                                                                              •Chemicals & Fertilizer
                                                                                                                                             Maputo          minerals
          77%             23%                                                                                        Gauteng                                •Gold & Uranium
       Dominant Commodities
                                                                                                                                                                 Projected Growth 2003
       •Maize                                                                                                                              53                         to 2020 40%
       •Fuel & petroleum products                                                                                                         (57)                     Road               Rail
                                                                                                                       3
                                                                                                                                                                   73%        27%
                                                                                                                      (6)                        Durban
                                                                                                                                                                 Dominant Commodities

                                                   19                                                                                                           •Maize
                                                                                  5                                                                             •Processed foods
                                                  (15)
                                                                                 (9)                                                                            •Coal
       Projected Growth 2003
            to 2020: 40%                                                                                                       East London
        2003 corridor stats:
         Road          Rail                                                                                                                                   Projected Growth 2003
                                      Cape Town                        Port Elizabeth                                            Projected Growth 2003             to 2020: 38%
         85%           15%
                                                   Projected Growth 2003                                                              to 2020: 31%             2003 corridor stats:
       Domestic Export/Import
                                                        to 2020 : 39%                                                             2003 corridor stats:          Road          Rail
         90%           10%                          2003 corridor stats:                                                           Road          Rail
       Dominant Commodities                          Road           Rail                                                                                        82%           18%
                                                                                                                                   91%            9%
                                                     92%             8%                                                                                       Domestic Export/Import
                                                                                                                                 Domestic Export/Import
                                                                                  Excluding primary export haulage



       •Processed foods                            Domestic Export/Import                                                                                       84%           16%
       •Coal                                         90%            10%                                                            90%           10%
       •Chemicals                                                                                                                                            Dominant Commodities
                                                   Dominant Commodities                                                          Dominant Commodities
       •Beverages                                                                                                                                            •Stone Quarrying
       •Fruit produce                             •Processed Food
                                                  •Maize                                                                         •Processed foods            •Limestone
                                                  •Chemicals                                                                     •Maize                      •Processed foods
                                                  •Iron Steel and ferro-alloys                                                   •Chemicals                  •Fuel & Petroleum products
         Million tons 2003                        •Railway equipment                                                             •Wood and wood products
(Million tons 2020 MSA forecast)                  •Motor Vehicles                                                                                           Source: CSIR and DOT
                                                                                                                                                                    2003
                                                                                                                              Gauteng          Volume         Value
                                                                                                                              Mega             (mt)           (Rbn)
                                                                                                                              Domestic
                             Rail and port volumes and investment                                                             Zone
                                                                                                                              Road             334            19.5

                                                                                                      Beit                    Rail             17.8           0.6
          Sishen-Saldanha                     Gauteng-Beit Bridge
                                                                                                      Bridge                                   Gauteng-Maputo
            Volume (mt) Value (Rbn)              Volume (mt) Value (Rbn)             Gauteng                                                     Volume (mt) Value (Rbn)
 Road                                 Road           29,5             8,5             Mega                                           Road             23,1           4,6
 Rail          27,0          0,8      Rail           3,2              0,6           Industrial                                       Rail              4             0,4
 Total         27,0          0,8      Total          32,7             9,1                                                            Total
                                                                                      Zone                                                            27.1           5,0
       Investment (Rbn)                                                                                               Maputo                Investment (Rbn)
 NPA               0.35                           Spoornet - Other                                                                   Spoornet           0.27
 SAPO              0.38                                                                                                              Petronet           0.92
                                                 Investment (Rbn)
 Spoornet          1.10                                                                                                              Total                   1.19
                                      Branchlines             0.18
 Total                1.83            Other                  16.80                                                                            Gauteng-Richardsbay
                                      Total                  16.98
                                                                                                                                                  Volume (mt) Value (Rbn)
            Sishen-PE
                                                                Sishen                                                    Richards Road
            Volume (mt) Value (Rbn)                                                                                                Rail               74,0           3,8
Road                                                                                                                      Bay
                                                                                                                                      Total           74,0           3,8
Rail            2,4           0,3
Total                                                                                                                                           Investment (Rbn)
                                      Saldanha                                                                      Durban
                                                                                                                                      NPA                    0.92
         Investment (Rbn)
                                                                                                                                      SAPO                   1.17
NPA                   0.25                                                                East London
Total                 0.25                                                                                                            Spoornet               2.70
                                                                                                                                      Total                  4.79
                                                                             Port
         Gauteng-Cape Town                                                                  Gauteng-PE/East London                             Gauteng-Durban
                                                                             Elizabeth
            Volume (mt) Value (Rbn)    Cape Town                                                    Volume (mt) Value (Rbn)                      Volume (mt) Value (Rbn)
 Road          16,6          13,3                                                        Road          9,1          5,2              Road             44,7           16,1
                                                              Coega                                                                  Rail             9,7            1,9
 Rail          2,7           0,7                                                         Rail          0,7          0,3
 Total         19,3          14,0                        Investment (Rbn)                                                            Total            53,4           18,0
                                                                                         Total         9,8          5,5
                                              NPA                     2.17                                                                     Investment (Rbn)
          Investment (Rbn)                    Spoornet                1.02                       Investment (Rbn)
                                                                                                                                     NPA                     6.20
 NPA                  1.26                    Total                   3.20               NPA                 2.76                    SAPO                    1.90
 SAPO                 0.79                                                               SAPO                0.20                    Spoornet                0.40
 Spoornet             0.10                                                               Spoornet            1.02                    Petronet                2.51
 Total                2.14                                                               Total               3.98                    Total                   11.01
Leveraging SOE capex
                      WHAT IS B-BBEE?
• BBBEE is an integrated and coherent socio-economic
  process that directly contributes to the economic
  transformation of South Africa and brings about
  significant increases in the numbers of black people
  who manage, own and control the country’s economy,
  as well as significant decreases in income inequalities

• BBBEE includes elements of human resource
  development, enterprise development, preferential
  procurement, as well as investment, ownership and
  control of enterprises and economic assets.
             *Black people include all African, Indian and Coloured South African Citizens
                    (Source: Broad-based Black Economic Empowerment Strategy
                            Department of Trade and Industry, March 2003)
                                 Broad-Based Beneficiary Base
 Equitable Economic Opportunities
                                                                                Emerging
                           Ownership                                          black middle
                        And Management
                                                                                 class &
          The Opportunity Barrier                                               investors

       Preferential                          Enterprise
       Procurement                          Development                           Black
                                                                              entrepreneurs
           The Business Barrier

                  Skills Development                                          Black workers,
                                                                              professionals,
               The Skills Barrier                                               graduates,
                                                                              school-leavers
    Employment                              Corporate
  Equity/Job creation                    Social Investment                        Black
                                                                              unemployed &
             The Poverty Barrier                                                rural poor

• Broad-based                                                BEE must be inclusive
• Result in economic growth                                  Accounted for with substance over form
              Economic Implications of Broad-Based BEE
• Increase level of participation by black
  people in mainstream economy
• Increase real market size in SA
  economy                                    Mainstream economy
• Increase income through resulting
  economic growth




                                                     BEE Upliftment
        More economic participants




                                              Second economy
        Increased economic growth
      Promulgation of BEE Framework
              2001 BEE Commissions Report
              2003 Publication of the BB-BEE Strategy
              2004 Promulgation of BB-BEE Act
              2005 Release of the Codes of Good Practice
                          SACOB Business Confidence Index
                                                                                        Release of the draf t Codes of
                                                                                               Good Practice
130
                                                                 Promulgation of Broad-
125                                                                   based BEE


120               Business
                  Confidence                        Publication of Broad-based
115
                                                           BEE Strategy
                        Publication of BEE
110
                       Commissions Report

105


100


95                                                          Provision of clearly defined BEE
90
                                                          framework coincides with increase in
85
                                                                  Business Confidence
80
       1998    1999            2000          2001             2002               2003              2004                  2005
               Elements of Broad-Based BEE
                                            Direct
                                       participation in
    Transforming        Ownership        Economic
          the                            Activities
    First Economy                      (Shareholders and
                        Management       Management
                                            Team)

                        Employment
Addressing challenges     Equity       Development of
   of the First and                    Human Capital
  Second Economy           Skills
                                         (Current and
                        Development       prospective
                                          employees)
                        Preferential   Development and
                                        Investment in
Addressing challenges   Procurement      Affirmable
         of                              Enterprises
  Second Economy         Enterprise
                                        (Suppliers and
                        Development      communities)
                Identified and approved ASGISA provincial
                                  projects
Province           Project

Eastern Cape       Mzimvubu Catchments & Biofuels

Northern Cape      Diamond and gem stone jewellery, National Livestock,
                   biofuels,

Free State         Biofuels

KZN                Biofuels, Makhathini casava and sugar

Western Cape       Cape Flats Infrastructure

Mpumalanga         Moloto Corridor (rail)

Limpopo            Dilokong Platinum

Gauteng            OTT Logistics hub and IDZ

North West         National Livestock
                       Lead sectors for fast-tracking
Capital/Transport equipment and Metals
•  Major opportunity to stimulate manufacturing through reducing import leakage of the public
   Capex programme and capitalising on the current mining and mineral-processing boom
•  Platform to position these sectors as major future exporters onto the rest of the continent and
   beyond

Automotives and Components
•  SA’s leading manufacturing sector, generating strong backward linkages from other sectors,
   particularly metals, leather, textiles and plastics
•  Major opportunity to double current vehicle production to 1.2 million units by 2020 with a
   corresponding deepening of local content

Chemicals, Plastic fabrication and Pharmaceuticals
•  Major opportunity to increase local beneficiation of polymers, particularly for automotive and
   packaging applications and leverage state procurement for local production of pharmaceuticals

Forestry, Pulp and paper, and Furniture
•   The sector has the potential to bring jobs and income to poor rural communities
•   Increased plantations in EC and KZN in the next 10 years will contribute to the provinces’
    growth and employment and stimulate processing activities, such as sawmilling and furniture
                     Investment Opportunities
Sector              Sub-sector
Agro-processing     Fisheries and Aquaculture, Floriculture, Fruit and Vegetable Processing Plants,
                    Juices, Meat Processing, Wine Production, Confectionery, Indigenous teas and
                    Natural Fibres.
Automotives         Interiors, Engine Parts/Components, Electronic, Drive Train Components, Body Parts,
                    Aluminum Components and Diesel particulate filters.
Chemicals and       •Titanium Beneficiation Initiative,Fluorochemicals Expansion Initiative,Polypropylene
Allied Industries   Conversion.
                    •Restructuring of State Owned Chemical Enterprises.
Business Process    Call Centres, Back Office Processing and Shared Corporate Services.
Outsourcing & IT    Enterprise solutions viz. fleet management, knowledge management, asset
Enabled Services    management solutions.
Electro Technical   Manufacturing of: automotive electronics, microchips and telecommunication
                    equipment.
Tourism             Hotels and self-catering holiday resorts, Adventure-, Eco-, Sport- Conference- and
                    cultural tourism, gaming, infrastructure development, leisure complexes and world
                    class golf courses, harbour & waterfront developments,transfrontier conservation
                    areas, cruise liners & transportation.
                                                                                         Source: DTI/TISA
                              Investment Opportunities
Sector                        Sub-sector
Clothing, Textiles, Leather   •Manufacturing of Industrial Textiles using Polyester
and Footwear                  •Production of other natural fibre textiles such as flax
                              •Wool and mohair production – downstream opportunities for yarns, knitwear
                              and fabric.
                              •Footwear – manufacturing of leather uppers.
Mining and metal based        Aluminum smelter capacity, Capital equipment: machine tool manufacturing
industries                    and petrochemical equipment, downstream processing and value-adding of
                              iron, carbon steel, aluminum, platinum group metals and gold, ferro-alloys,
                              gold and stainless steel.
Aerospace, Rail and Marine    Aerospace: Rotor and fixed wing aviation equipment and services,
                              Helicopters and aircraft components, Aviation training services for African
                              airlines, IDZ at Johannesburg International Airport, warehousing for aircraft
                              parts.
                              Rail: Rolling stock and services for the domestic market, estimated R7
                              billion Gautrain which includes infrastructure development and rolling stock,
                              Rail infrastructure of the African continent through NEPAD and
                              Rehabilitation of low density rail line.
                              Marine: Development of boat yards and wet docks/floating docks, Joint
                              ventures with local shipyards, manufacture of boats, yachts, catamarans and
                              fleet racing boats, custom-made vessels (tugs) and training schools.
                    Investment Opportunities

Sector               Sub-sector
Capital Equipment    Re-capitalisation of:
                     •Forgings & Castings
                     •Boilers
                     •Tool dies & moulds
                     Expansion & export development
                     •Pumps, valves, material handling & straddle crane carriers
                     •Mechanised mining
                     New investments in:
                     •Turbine assembly
                     •Production of turbine components
                     •Machine tool manufacturing
Film                 •Film studios and post production facilities.
                     •Co-production ventures.
                     •Distribution infrastructure



                                                                                   Source: DTI/TISA
                                 Incentives

   Incentive                   Benefit                        Main Conditions

Small and Medium    Cash grant of up to 10% of           Investments of less than R100m;
Enterprise          qualifying assets                    benefit decreases with size of
Development                                              investment
Programme
(Temporary
suspended)

Support Programme   50% of the direct cost incurred in   Development must be a significant
for Industrial      development                          technological advance and have
Innovation                                               commercial advantage over existing
                                                         product

Industrial          Exemption from VAT when              Prospective IDZ operator
Development Zone    sourcing goods and services          companies must apply for permits to
                    from South African customs           develop and operate an IDZ
                    territory and duty-free imports of
                    raw materials and inputs for
                    export
                                    Incentives

    Incentive                     Benefit                        Main Conditions

Foreign Investment    Foreign entities may qualify up to    Only new machinery, equipment
Grant (Temporary      a maximum of R3m                      acquired from abroad and required
Suspended)                                                  to establish a manufacturing project
                                                            in SA will be considered


Critical              Infrastructure projects intended      The minimum qualifying
Infrastructure Fund   to service IDZ, shall qualify for a   infrastructure development cost is
                      grant of 30% of the qualifying        R15m
                      infrastructure development cost
the dti’s Investment Services

•   Sector Information

•   Finance to Explore Investment Opportunities in SA

•   Facilitating Direct Government Support in the form of

•   Information on Investing in SA and Business Environment

•   Detailed Investment Incentives

     •   Investment Facilitation

     •   After care – ongoing contact
        the dti’s Contact Details


• the dti Call Centre: 0861 843 384
• the dti Switchboard: +27 12 394 0000
• Investment Promotion: +27 12 394 1333/1339
• Website: www.thedti.gov.za
• E-mail: investmentsa@thedti.gov.za
• Postal Address:    Private Bag X 84
                      Pretoria
                      0001
                      South Africa
Thank You

								
To top