Photo by: Duane Daws
The Department of Trade and Industry (DTI) has temporarily suspended new applications for its Manufacturing Competitiveness Enhancement Programme (MCEP), as the large number of applications far exceeded the funds set aside for the programme.
Initially, R5-billion had been set aside for the programme, which was designed as an incentive to support enterprises in the production sectors of the economy, but these funds had now been fully committed.
The MCEP sought to secure higher levels of investment, raise competitiveness and retain employment in the country’s waning manufacturing sector.
To date, the MCEP had supported 1 153 entities acquire capital equipment and reengineer business processes to improve their competitiveness. All assisted enterprises also retained jobs and were committed to black economic empowerment.
The DTI had highlighted the high number of applications it had received under the MCEP in May this year, when it limited the programme incentives to projects requiring investments of less than R50-million.
A new application window would be opened in April 2016, pending the availability of funds. All other incentives of the department would continue as normal.
The DTI also emphasised that it would continue to honour all approved applications under the MCEP.