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Free State Business 2021

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The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

SPECIAL FEATURE South

SPECIAL FEATURE South African investment incentives The South African government, particularly the Department of Trade, Industry and Competition, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors. South Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and develop- ment (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP). FREE STATE BUSINESS 2021 24

is renting out 18 850 sqm standalone factory including Furniture FDC Machinery, Equipment, and Furniture for Business Manufacturing SPECIAL FEATURE Manufacturing Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was launched in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere. The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors. Aimed at smaller companies, the maximum grant is R30-million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act. Other incentives Other incentives that are available to investors as well as existing businesses in more than one sector include the following: • Technology and Human Resources for Industry Programme (THRIP) • Support Programme for Industrial Innovation (SPII) • Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises • Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure • Co-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives • Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations. I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H FDC is renting out 18 850 sqm standalone factory including Furniture O P E R T Y T O R E N T I N H A R R I S M I T H Manufacturing Machinery, Equipment, and Furniture for Business R P L A I R T S U D N I Operation.. The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Operation.. arterial routes and Quick access onto N3 Freeway. main This factory offers the following: 2277 in Harrismith and close proximity to all amenities, on Site at Situated is factory The Sprinkler System. and Quick access onto N3 Freeway. routes arterial main factory offers the following: Security Guard House This System. Well fenced and secured Sprinkler Ample parking Doors Roller 4 3 phase power with 100 amps House Guard Security 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with Well secured and fenced shower Ample parking phase power with 100 amps Occupation available immediately. Please contact Mr Tefo Matla for more 3 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with information or to view: 8 shower 4 Roller Doors Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za available immediately. Please contact Mr Tefo Matla for more FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND Occupation CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 information or to view: Incentives for SMMEs Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include: • Small Medium Enterprise Development Programme (SMEDP) • Isivande Women’s Fund • Seda Technology Programme (Stp). • Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business Development that exists to promote SMMEs. Trade-related incentives The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods. ■ Online Resources Department of Trade, Industry and Competition: www.thedtic.gov.za Free State Development Corporation: www.fdc.co.za Industrial Development Corporation: www.idc.co.za Official South African government incentive schemes: www.investmentincentives.co.za 25 FREE STATE BUSINESS 2021

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