Medium Enterprise Development Programme (SMEDP) incentive scheme
31 August 2006
The Department of Trade and Industry (dti) has announced that it is
temporarily suspending applications to its Small Medium Enterprise Development
Programme incentive scheme on 31 August 2006, in order to refine the guidelines
for the programme. The programme will resume in three to six months once this
process has been completed. All incoming applications received by 31 August
2006, for projects starting production on or before 31 August 2007 would be
considered.
The department wants to make it clear that this is a temporary suspension
for a limited period to enable it to strengthen it in areas where the programme
is having the greatest impact.
Three separate and independent studies have indicated that the SMEDP
successfully influenced decisions by small enterprises about the timing and
size of their investments. Enterprises using the scheme have indicated that the
availability of the incentive had influenced them to bring forward planned
investment projects and to make investments on a scale that was larger than
their initial intentions. The scheme has also had a significant impact on
downstream beneficiation in sectors like furniture and plastic products
manufacturing, where it is a significant contributor to annual Gross Fixed
Capital Formation (GFCP).
The programme was one of a suite of investment support programmes introduced
in 2000. The scheme was originally intended to be available until August
2006.
Since its inception, 7 434 projects have been approved under the programme.
Investment by firms in qualifying costs is R36 billion. The average size of
investment in qualifying costs is R4,8 million and the average grant is R390
000 per annum. During the past six years investment by firms receiving the
incentive has created 195 000 jobs.
For further details contact:
Henriette van der Merwe
Tel: (012) 394 1640
Cell: 082 572 8184
Bongani Lukhele
Tel: (012) 394 1643
Cell: 083 291 8689
Bethuel Mnguni
Tel: (012) 394 1647
Cell: 083 624 8888
Donavan Jacobs
Tel: (012) 394 1641
Cell: 082 751 1078
Please address all your media enquiries to:
mediarelations@thedti.gov.za
Issued by: Department of Trade and Industry
31 August 2006
