Capital Projects Feasibility Programme (CPFP)
The CPFP is a cost-sharing grant that contributes to the cost of feasibility studies likely to lead to projects that will increase local exports and stimulate the market for South African capital goods and services.
The programme provides support to facilitate feasibility studies in the manufacturing and capital goods sector. The programme makes a contribution in the form of a cost-sharing grant payable according to agreed milestones; 50% of the total feasibility study costs for capital projects outside Africa and 55% of total feasibility study costs for capital projects in Africa, 50% of the total feasibility study costs for manufacturing projects with total assets above R30 million, and 70% of the total feasibility study costs for manufacturing projects with total assets below R30 million. To be eligible the study must be undertaken by a registered South African legal entity. In the case where a study is undertaken by a foreign applicant, it will only be eligible if it partnered with a South African entity, and the application is submitted by the South African entity. Applicants must be in compliance with the requirements of Broad-Based Black Economic Empowerment (B-BEEE) and submit a valid certificate.
Costs relating to feasibility studies.
A feasibility study will not qualify if it is; 1) Expected not to result in a project which is manufacturing or capital goods and services in nature. 2) Expected not to result in a project which can be readily carried out without even conducting a feasibility study. 3) Expected not to result in a bankable document which can translate into an implementable project. 4) Receiving government funding for the same aspect of the same project.
The applicant must submit the following documents to apply for the programme; completed application form, valid tax clearance certificate, audited and independently reviewed financial statements for existing projects or projected financial statements for new projects, curriculum vitae of the main study team, copy of the pre-feasibility study report, company references, company profile, copy of signed MoU, MoA, joint ventures and off-take agreements and company registration documents (CK1).
Feasibility studies must be undertaken by a South African firm registered as a legal entity. Whereas a feasibility study is undertaken by a foreign applicant, the foreign applicant will only be considered if they partner with South African firms, and the applications are submitted by the South African registered firm. Applicants must be in compliance with the requirements of B-BEEE, and submit a valid certificate in terms of the B-BBEE Codes of Good Practice.