http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.08Change: 0.00
Au 1216.40 $/ozChange: -0.63
Pt 1339.00 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 02, 2012

Davies sets May launch date for new R5.8bn manufacturing incentive

Back
Trade and Industry Minister Dr Rob Davies and Department of Trade and Industry deputy director-general Nimrod Zalk on the Manufacturing Competitiveness Enhancement Programme. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
Agriculture|Africa|Industrial|MCEP|Resources|Water|Africa|South Africa|Automotive|Embattled Domestic Manufacturing Sector|Manufacturing|Manufacturing Enterprises|Mining|Products|Transport|Water Infrastructure|Coenraad Bezuidenhout|Infrastructure|Nimrod Zalk|Power|Rob Davies|Water
Agriculture|Africa|Industrial|MCEP|Resources|Water|Africa||Automotive|Manufacturing|Mining|Products|Transport||Infrastructure|Power|Water
agriculture|africa-company|industrial|mcep|resources|water-company|africa|south-africa|automotive|embattled-domestic-manufacturing-sector|manufacturing|manufacturing-enterprises|mining|products|transport-industry-term|water-infrastructure|coenraad-bezuidenhout|infrastructure|nimrod-zalk|power|rob-davies|water
© Reuse this



South Africa’s newest R5.8-billion incentive scheme, which has been established to support the embattled domestic manufacturing sector, should become operational during the course of May, Trade and Industry Minister Dr Rob Davies said on Monday.

The rules governing access to the so-called Manufacturing Competitiveness Enhancement Programme (MCEP) would be released soon and the scheme would be open to all manufacturing enterprises not covered by sector-specific industrial financing support mechanisms. In other words, companies in the automotive, clothing and textiles and business process outsourcing industries would not be eligible.

Department of Trade and Industry deputy director-general Nimrod Zalk said the MCEP was also unlikely to support capital-intensive industries, firms in sectors with high levels of market concentration, or those that had been found guilty of anticompetitive behaviour. “We will seek to support initiatives that maximise employment and value-added potential,” Zalk said.

The department’s The Enterprise Organisation would administer the incentive, which was also one of the few new elements included in latest version of the Industrial Policy Action Plan, or Ipap3, also unveiled on April 2.

The larger action plan would also be deployed over the three-year fiscal period from April 1, 2012, through to March 31, 2015, with yearly revisions. It had been closely calibrated to the R845-billion public infrastructure programme and would seek to leverage industrial development opportunities on the back of general public sector procurements and the investments into power, transport and water infrastructure.

The focus of the MCEP was on supporting domestic manufacturing enterprises, many of which were still battling domestic and international headwinds, to upgrade their facilities, processes and products, as well as to initiate targeted skills initiatives.

During the 2009 recession, manufacturing shed 200 000 of the nearly one-million jobs lost over the period and Davies indicated that during the current phase, where many of South Africa’s key trading partners were either facing new recessionary conditions, or protracted periods of low growth, the MCEP was part of South Africa’s “proactive” response plan.

It was also intended to facilitate such upgrading notwithstanding the natural reticence arising from rising power and transport prices and the volatile currency, which a number of manufacturers argued was overvalued.

“There is a risk that we could repeat the situation of 2009, where there is a depressing effect on the South Africa economy arising from global conditions and that manufacturing could be disproportionately affected,” Davies warned.

Manufacturing Circle executive director Coenraad Bezuidenhout said the proposed May launch of the incentive was a welcome development.

The organisation was also thankful that the sector was receiving greater attention from government and that some resources were also being directed towards boosting manufacturing. But to replicate some of the sector-level successes would require closer collaboration between government and business, as well as full buy-in across government departments not only for MCEP, but also for a number of the procurement programmes.

Many of the MCEP’s design elements had been drawn from the Clothing and Textiles Competitiveness Programme (CTCP), which was currently helping to support 208 companies in the sector, employing 48 384 people.

As with the clothing and textile sector ahead of the introduction of the CTCP, many manufacturers were reluctant to invest to elevate their competitiveness over the medium term, preferring to “sweat their assets” until it reach a point where they were forced to close.

“Manufacturers must invest to raise competitiveness,” Davies averred, adding that the MCEP would offer grant funding to support such initiatives.

The grant funding was additional to the R102-billion in loan finance that would be disbursed by the Industrial Development Corporation in the coming five years to support the productive sectors outlined in the New Growth Path, including manufacturing, mining and beneficiation and agriculture and agroprocessing.

The MECP was also over-and-above the R21.7-billion 12(i) tax incentive for large manufacturing investments, and a range of sector and generic incentives on offer, such as the Automotive Production Development Programme and the support available for research and development programmes.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Infrastructure News
Zukie Siyotula, Wandile Mseleku and Govert Rietema.
African investment management firm Thebe Investment Corporation has acquired a 15% stake in Burgan Cape Terminals, which was, last year, awarded a 20-year contract by Transnet National Ports Authority (TNPA) to develop and manage fuel storage and distribution...
Although the national Municipal Benchmarking Initiative (MBI) is not intended to be a solution to service delivery problems, it does aim to improve efficiency and effectiveness by enabling municipalities to share knowledge on a peer-to-peer basis. This is according...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
More
 
 
Latest News
President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks