Strategic Partnership Programme (SPP)
SPP was initiated to develop and support programmes/interventions aimed at enhancing the manufacturing and services supply capacity of suppliers with linkages to strategic partners' supply chains, industries or sectors.
The grant support is available for machinery and equipment, infrastructure, commercial vehicles and business development services necessary to grow enterprises to ensure that within a period of 3 years, the Small and Medium Enterprises (SME’s) will have developed to be self-sustainable by providing locally manufactured products and/or services relevant to the sector. The strategic partner can either be; a South African registered legal entity with a minimum turnover of R100 million per annum for at least two consecutive years at application stage, confirmed by the latest available audited financial statements, or an industry registered association representing
interests of member manufacturing companies. Applicants that are receiving grant funding from other government departments or agencies will not qualify for the similar expenditure or activities under this programme and such costs will be excluded when determining the cost-sharing contributions. The following costs are excluded (not funded): basic and applied research, costs incurred or assets acquired prior to approval of complete proposal submitted to the dti, bonus payments and/or any cost, which the adjudication committee in its sole discretion deems as non-qualifying.
The following costs are eligible for support: machinery, equipment and tools, infrastructure linked to the strategic partner’s supplier development initiative (owned/ leased buildings, leasehold improvements) product or service development, Information and Communication Technology (ICT), operational costs and business development services limited to specified costs.
To apply visit the dti website, and locate the financial assistance tab. All information including application forms and guidelines is provided for in each of the dti funding and/or incentives.
The applicant/project will be evaluated based on the following evaluation criteria: management competency with business and technical background and entrepreneurial and leadership skills, track record in successfully mentoring and coaching SMEs, comprehensive project proposal, availability of funding and commitment from strategic partners to fund the project, SME support and capacity to develop networks, extent to which partners are committed to and have demonstrated capacity to create market access opportunities for the product and services arising out of the strategic partnership programme, realistic exit strategy and post-programme support plan and contract values.
The strategic-partner should either register a Special Purpose Corporate Vehicle (SPCV) incorporated in the Republic of South Africa or set up a separate cost centre or branch solely dedicated to the purpose of participating in this programme. The SMEs supported by the strategic-partner must be a South African registered legal entity, involved in manufacturing, agro-processing, mineral beneficiation and manufacturing related service sectors of the economy.