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South African Business 2016 edition

  • Text
  • Investment
  • Government
  • Business
  • Development
  • Network
  • Sectors
  • Investing
  • Business
  • Africa
  • African
  • Economic
  • Manufacturing
  • Mining
  • Opportunities
  • Economy
  • Overview
South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication. The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.

SPECIAL FEATURE Black

SPECIAL FEATURE Black Business Supplier Development Programme (BBSDP) The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black-owned small enterprises, to assist them in improving their competitiveness and sustainability, in order for them to become integrated into the mainstream economy and create employment. Contact: 011 363 3000, www.bbsdp.co.za Enterprise Investment Programme (EIP) The Department of Trade and Industry’s (the dti’s) Tourism Support Programme (TSP) is a sub-programme of the Enterprise Investment Programme (EIP). It is a targeted incentive, aimed at supporting the development of tourism enterprises, thereby stimulating job creation and encouraging the geographic spread of tourism investment. Contact: 0861 843 384, www.thedti.gov.za Support Programme for Industrial Innovation (SPII) The Support Programme for Industrial Innovation (SPII) is designed to promote technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and/or processes. Contact: 0861 843 384, www.thedti.gov.za The Co-Operative Incentive Scheme (CIS) The Co-operative Incentive Scheme (CIS) is a 90:10 matching cash grant for registered primary co-operatives (a primary co-operative consists of five or more members). Contact: 0861 843 384, www.thedti.gov.za Source: Standard Bank Funding Agencies in South Africa South African government funding and grants are focused on providin g funding for business ventures that can make a difference to the economy. The Department of Trade and Industry (dti) provides funding to qualifying businesses from a range of sectors. The National Empowerment Fund (NEF) supports B-BEEE and previously disadvantaged individuals and communities. It offers a funding for start ups and expansion as a loan, equity funding. The National Youth Development Agency (NYDA) provides enterprise funds for young entrepreneurs aged between 18 and 35 years old and aims to assist them in starting a business or growing an existing one. The Industrial Development Corporation (IDC) has multiple funds available offering financial support to start-up businesses needing capital for equipment, working capital and buildings. It also funds business expansion. The KZN Growth Fund’s primary mandate is investment in infrastructure to promote economic development with in the Province. The KFW Development Bank as part of the KFW banking group is responsible for Financial Cooperation with developing countries. In terms of volume, this form of cooperation is the most important instrument in German development cooperation. The Land Bank offers a wide range of loans for all financial needs like buying land, equipment and working capital for agricultural projects. Applications require a business plan. The Small Enterprise Finance Agency is founded in 2012 and has access to R1.4-billion in funding given by IDC and the Government for South African small businesses over the next three years. The Technology Innovation Agency (TIA) was established in 2008. The objectives are stimulating and intensifying technological innovation in order to improve economic growth. The goal is to increase the quality of life of all South Africans by developing and exploiting technological innovations. Sources: Fundingconnection.co.za, Mediaclubsouthafrica.com SOUTH AFRICAN BUSINESS 2016 32

OVERVIEW SEZs and IDZs Industry is growing thanks to Government’s incentivised and structured industrial zones. The South African government established the Industrial Development Zones (IDZ) to attract Foreign Direct Investment and export of value-added commodities. These zones were developed with the aim to increase industrial growth.There are currently five operating IDZs in South Africa. The Coega IDZ is the largest IDZ in Southern Africa. It was designated in 2001 and became South Africas first Industrial Development Zone. It is located in the Nelson Mandela Bay Metropolitan Municipality in the Eastern Cape Province and it is strategically located on the east-west trade route to service both world and African markets. The Coega IDZ leverages public sector investment to attract foreign and domestic direct investment in the manufacturing sector with an export orientation. The IDZ has attracted investment in the agro-processing,automotive, aquaculture, energy, metals logistics and business process services sectors. The Richards Bay Industrial Development Zone (RBIDZ) is a purpose built and secure industrial estate on the North-Eastern South African coast. The N2 business corridor links the Province’s two major ports, Durban and Richards Bay, and connects with Maputo in Mozambique and, ultimately, areas of East Africa. It is linked to an international sea port of Richards Bay, tailored for manufacturing and storage of minerals and products to boost beneficiation, investment, economic growth and, most importantly, the development of skills and employment. First-world infrastructure allows for the full exploitation of the areas’ natural and strategic advantages. Innovation, Efficiency, Growth and Sustainability are key to the East London Industrial Development Zone’s (ELIDZ’s) reason for existence. Established in 2003, as part of the South African government initiative to improve industrial competitiveness and economic growth in the country, the zone has become a prime industrial park in South Africa, renowned for its customised solutions for various industries including automotive, agro-processing and aqua-culture. The ELIDZ offers growth oriented companies a specialised manufacturing platform, innovative industrial and business solutions access to new markets and strategic industry networks. The Saldanha Bay Industrial Development Zone (IDZ) received its operator permit on 31 October 2013 at Saldanha Bay in the Western Cape Province. This newly established IDZ will serve as the primary oil, gas and Marine Repair engineering and logistics services complex in Africa, servicing the needs of the upstream Oil Exploration Industry and Production service companies operating in the oil and gas fields off Sub-Saharan Africa. Dube TradePort is a catalyst for global trade and a portal between KwaZulu-Natal and the world. It’s the only African facility that brings together an international airport, a cargo terminal, warehousing, offices, a retail sector, hotels, and an agricultural area. It comprises the Dube TradeZone, which aims to focus on manufacturing and value-addition primarily for automotive, electronics and fashion garments, and the Dube AgriZone, a high-tech, future farming facility and host to the c ontinent’s largest climate-controlled growing area under glass will focus on high-value, niche agricultural and horticultural products. 33 SOUTH AFRICAN BUSINESS 2016

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