The Department of Trade, Industry, and Competition (DTIC) offers several grants and incentives to support the growth and development of small businesses in South Africa. These programmes are designed to encourage innovation, job creation, and the development of key industries. Below is a detailed guide to some of the most relevant DTI grants for small businesses.
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Seed Fund Grant
The Seed Fund aims to assist small businesses, higher education institutions (HEIs), and start-up companies in funding research, technology development, and pre-commercialisation activities. This fund bridges the financing gap to translate research outputs into fundable, commercialised ideas.
- Objective: To support the development of innovative products and services, assisting small, medium, and micro-sized enterprises (SMMEs) and start-ups in transforming research into commercial opportunities.
- Beneficiaries: SMMEs, start-up companies, higher education institutions (HEIs), and science councils.
- Benefits:
- Minimum funding: R100,000
- Maximum funding: R500,000
- Funding duration: 12 months
- Implementing Agency: Technology Innovation Agency (TIA)
- More information: Seed Fund
South African Film and Television Production Incentive Grant
This incentive is designed to support the local film and television industry by providing financial support for qualifying productions, encouraging job creation, skills development, and promoting diversity and inclusion in the sector.
- Objective: To increase the international profile of the South African film industry, contribute to job creation, and improve procurement from black-owned entities.
- Benefits:
- 35% of Qualifying South African Production Expenditure (QSAPE)
- Additional 5% QSAPE for productions that hire 30% Black South Africans as heads of department and source 30% of QSAPE from black-owned entities.
- Maximum reimbursable grant: R25 million per project.
- Eligibility:
- Minimum QSAPE: R1.5 million for production formats, R500,000 for documentaries.
- 60% of principal photography must be filmed in South Africa.
- Intellectual property and key personnel must be predominantly South African.
- More information: South African Film and Television Production Incentive
Strategic Partnership Programme (SPP) Grant
The SPP is designed to develop and support small businesses by building their capacity to become sustainable suppliers of goods and services within the supply chains of large, strategic partners in the private sector.
- Objective: To strengthen B-BBEE policy by encouraging large businesses to develop small businesses within their supply chains.
- Qualifying Costs:
- Machinery and equipment
- Infrastructure development
- Product or service development
- Information and Communication Technology (ICT)
- Operational costs
- Business development services
- Grant Support:
- Maximum grant: R15 million per financial year, provided on a cost-sharing basis (50:50 for manufacturing, 70:30 for supply chain services).
- Eligibility:
- Strategic partner must be a South African registered entity with a turnover of at least R100 million per year.
- 60% of the SMEs supported must be at least 51% black-owned.
- More information: Strategic Partnership Programme (SPP)
Support Programme for Industrial Innovation (SPII) Grant
The SPII programme provides financial assistance to small and micro-enterprises for the development of innovative products or processes in South Africa. This programme focuses on funding the development phase, from the conclusion of basic research to the production of a pre-commercial prototype.
- Objective: To promote technology development in South Africa’s industry through financial support for product and process innovation.
- Types of Support:
- SPII Product Process Development (PPD) Scheme: Focuses on small and micro-enterprises.
- SPII Matching Scheme: Available to all enterprises, providing a non-repayable grant.
- Grant Limits:
- Product Process Development Scheme: Maximum grant of R2 million
- Matching Scheme: Maximum grant of R5 million
- Qualifying Costs:
- Personnel costs, travel expenses, direct materials, software, documentation, testing, and licensing costs.
- More information: Support Programme for Industrial Innovation (SPII)
Technology and Human Resource for Industry Programme (THRIP) Grant
The THRIP is a collaborative programme that promotes applied research and technology development. It is aimed at leveraging partnerships between government, industry, and academia to develop new technologies and highly skilled human resources in science, engineering, and technology.
- Objective: To develop new technologies for industrial application and improve competitiveness through collaborative projects.
- Benefits:
- Grant funding between R5 million and R15 million per project, covering research costs, student bursaries, and pre-commercialisation costs.
- Eligibility:
- Projects must be focused on applied research in science, engineering, and technology sectors, with a strong focus on innovation and technology transfer.
- More information: Technology and Human Resource for Industry Programme (THRIP)
Workplace Challenge Programme (WPC) Grant
The Workplace Challenge Programme (WPC) is a DTIC initiative managed by Productivity South Africa. The programme focuses on improving the productivity and competitiveness of South African businesses in the manufacturing, agriculture, agro-processing, mining, and beneficiation sectors. The WPC supports companies by encouraging continuous improvement and lean manufacturing practices.
- Objective: To enhance productivity, encourage world-class competitiveness, and improve operational efficiency in businesses, while promoting job creation.
- Target Sectors: Manufacturing, agriculture, agro-processing, mining, and beneficiation.
- How It Works: Companies participate in regional clusters (groups of 5 to 7 companies) facilitated over a period of 24 months by Productivity SA coaches (Change Facilitators).
- Partnership: Jointly initiated by Nedlac and the DTIC.
- More information: Workplace Challenge Programme
Clothing and Textiles Competitiveness Programme (CTCP) Grant
The Clothing and Textiles Competitiveness Programme (CTCP) is a key initiative aimed at improving the competitiveness of South Africa’s clothing, textiles, footwear, leather, and leather goods industries. The programme provides financial assistance for upgrading equipment, processes, products, and skills to position South African companies to compete globally, especially against low-cost producers.
- Objective: To re-position South Africa’s clothing and textiles industries by upgrading their capacity and efficiency, thereby increasing global competitiveness.
- Target Sectors: Clothing, textiles, footwear, leather, and leather goods.
- What It Funds: Equipment, skills development, process improvements, and product development.
- More information: Clothing and Textiles Competitiveness Programme
Black Industrialists Scheme (BIS) Grant
The Black Industrialists Scheme (BIS) aims to support the creation and expansion of black-owned and black-controlled industrial businesses in South Africa. The scheme provides financial and non-financial support to black industrialists operating in sectors aligned with the Industrial Policy Action Plan (IPAP).
- Objective: To accelerate the participation of black industrialists in South Africa’s manufacturing sectors, facilitating growth, investment, exports, and employment.
- Target Sectors: Manufacturing, particularly in industries such as automotive, oil and gas, chemicals, agro-processing, information technology, mineral beneficiation, and others.
- Grant Offering: A cost-sharing grant ranging from 30% to 50% of approved costs, capped at R50 million. It also offers grants for:
- Capital investment costs
- Feasibility studies (up to R3 million)
- Post-investment support (up to R500,000)
- Business development services (up to R2 million)
- More information: Black Industrialists Scheme (BIS)
Aquaculture Development and Enhancement Programme (ADEP) Grant
The Aquaculture Development and Enhancement Programme (ADEP) provides financial support to businesses involved in aquaculture operations, including fish hatcheries, fish farming, and processing of aquaculture products. This programme is aimed at boosting investment in the sector while ensuring job creation and production growth.
- Objective: To stimulate investment in the aquaculture sector and support job creation, increased production, and broader participation in the industry.
- Grant Offering: Up to 50% of qualifying costs, capped at R20 million. This includes:
- Machinery and equipment
- Infrastructure (water and electrical infrastructure)
- Buildings and leasehold improvements
- Commercial vehicles or workboats
- Competitiveness improvement activities (skills development)
- Aquaculture feed (up to 10% of total costs)
- Eligible Enterprises:
- Primary Aquaculture Operations (e.g. hatcheries, grow-out facilities)
- Secondary Aquaculture Operations (e.g. processing and value-adding)
- Ancillary Aquaculture Operations (e.g. feed manufacturing)
- More information: Aquaculture Development and Enhancement Programme (ADEP)
Workplace Challenge Programme (WPC) Grant
The Workplace Challenge Programme (WPC) is a DTIC initiative managed by Productivity South Africa. The programme focuses on improving the productivity and competitiveness of South African businesses in the manufacturing, agriculture, agro-processing, mining, and beneficiation sectors. The WPC supports companies by encouraging continuous improvement and lean manufacturing practices.
- Objective: To enhance productivity, encourage world-class competitiveness, and improve operational efficiency in businesses, while promoting job creation.
- Target Sectors: Manufacturing, agriculture, agro-processing, mining, and beneficiation.
- How It Works: Companies participate in regional clusters (groups of 5 to 7 companies) facilitated over a period of 24 months by Productivity SA coaches (Change Facilitators).
- Partnership: Jointly initiated by Nedlac and the DTIC.
- More information: Workplace Challenge Programme
Clothing and Textiles Competitiveness Programme (CTCP) Grant
The Clothing and Textiles Competitiveness Programme (CTCP) is a key initiative aimed at improving the competitiveness of South Africa’s clothing, textiles, footwear, leather, and leather goods industries. The programme provides financial assistance for upgrading equipment, processes, products, and skills to position South African companies to compete globally, especially against low-cost producers.
- Objective: To re-position South Africa’s clothing and textiles industries by upgrading their capacity and efficiency, thereby increasing global competitiveness.
- Target Sectors: Clothing, textiles, footwear, leather, and leather goods.
- What It Funds: Equipment, skills development, process improvements, and product development.
- More information: Clothing and Textiles Competitiveness Programme
Black Industrialists Scheme (BIS) Grant
The Black Industrialists Scheme (BIS) aims to support the creation and expansion of black-owned and black-controlled industrial businesses in South Africa. The scheme provides financial and non-financial support to black industrialists operating in sectors aligned with the Industrial Policy Action Plan (IPAP).
- Objective: To accelerate the participation of black industrialists in South Africa’s manufacturing sectors, facilitating growth, investment, exports, and employment.
- Target Sectors: Manufacturing, particularly in industries such as automotive, oil and gas, chemicals, agro-processing, information technology, mineral beneficiation, and others.
- Grant Offering: A cost-sharing grant ranging from 30% to 50% of approved costs, capped at R50 million. It also offers grants for:
- Capital investment costs
- Feasibility studies (up to R3 million)
- Post-investment support (up to R500,000)
- Business development services (up to R2 million)
- More information: Black Industrialists Scheme (BIS)
Aquaculture Development and Enhancement Programme (ADEP) Grant
The Aquaculture Development and Enhancement Programme (ADEP) provides financial support to businesses involved in aquaculture operations, including fish hatcheries, fish farming, and processing of aquaculture products. This programme is aimed at boosting investment in the sector while ensuring job creation and production growth.
- Objective: To stimulate investment in the aquaculture sector and support job creation, increased production, and broader participation in the industry.
- Grant Offering: Up to 50% of qualifying costs, capped at R20 million. This includes:
- Machinery and equipment
- Infrastructure (water and electrical infrastructure)
- Buildings and leasehold improvements
- Commercial vehicles or workboats
- Competitiveness improvement activities (skills development)
- Aquaculture feed (up to 10% of total costs)
- Eligible Enterprises:
- Primary Aquaculture Operations (e.g. hatcheries, grow-out facilities)
- Secondary Aquaculture Operations (e.g. processing and value-adding)
- Ancillary Aquaculture Operations (e.g. feed manufacturing)
- More information: Aquaculture Development and Enhancement Programme (ADEP)