15 November 2013
The Department of Trade and Industry has approved more than R3-billion in incentives for 436 manufacturing enterprises since the inception of its Manufacturing Competitiveness Enhancement Programme (MCEP) in May 2012, says Trade and Industry Minister Rob Davies.
The programme offers a number of incentives designed to drive growth in South Africa’s manufacturing sector by helping businesses meet challenges relating to poor market demand, high input (including electricity and transport) costs, cheap imports, and economic uncertainty.
It also includes a package of incentives to help established manufacturers increase their competitiveness while retaining jobs.
Briefing journalists in Johannesburg on Thursday, Davies said the 436 enterprises had a combined investment value of R13.1-billion, and would help to sustain more than 116 000 jobs in manufacturing.
Davies said a key component of the programme was the Green Technology and Resource Efficiency Improvement incentive, which supports green technology upgrades and business development activities that lead to cleaner production and resource efficiency.
“Out of the 436 entities that have been approved since the launch of the MCEP, 26 entities for a total grant of about R274.7-million are green manufacturing related,” Davies said.
“Large export-oriented companies that have been at the forefront of investment in green manufacturing have projected an investment to the value of R727.4-billion and that 43 784 jobs will be sustained as a result of these investments.”