Enterprise Investment Programme (EIP)

Available from 21 July 2008; applicable for a period of 6 years until 2014.

The EIP is dvided into two programmes, namely:

• Manufacturing Investment Programme (MIP), to promote manufacturing with priorities in metal fabrication, chemicals, plastic fabrication and pharmaceuticals, furniture, automotive and components.
• Tourism Support Programme (TSP) to accelerate growth in tourism.

Some of the salient points of the Enterprise Investment Programme state that:

1. Government incentives will apply to new projects, as well as to expansions. However, only one expansion per applicant will be allowed.
2. The incentives will be capped on an investment of R200m per application.
3. The incentives will be as follows:
• Less than R5m investment - up to 30% benefit payable over three years
• Between R5m and R200m - up to 15% benefit payable over two years subject to a maximum of R30m benefit per application.
4. Qualifying expenditure will consist of:
• New machinery and equipment
• Newly acquired land and buildings as part of the investment project
• Commercial vehicles