Government Incentive Programmes
At Hilder Consulting, we assist South African businesses in unlocking access to a wide range of government funding opportunities designed to promote investment, competitiveness, and job creation.
Below is a summary of key incentive programmes administered by the Department of Trade, Industry and Competition (the dtic).
Manufacturing Support Programme (MSP)
The MSP provides direct cash support to Level 1–4 B-BBEE manufacturing companies investing in new or expanding operations.
The programme helps enhance production capacity, competitiveness, and job creation.
Qualifying costs include
New machinery and production equipment
Building upgrades or extensions
Commercial and delivery vehicles
Apply before you buy or start using the assets: equipment already in use does not qualify.
How the MSP grant works
The Manufacturing Support Programme (MSP) is a reimbursable grant from the dtic for South African manufacturers investing in a new factory or expanding an existing one. You spend first, and the dtic pays its share back against approved milestones.
Who qualifies
A South African registered company, close corporation or co-operative in manufacturing
B-BBEE Level 1 to 4, at application and at every claim
Tax compliant and paying sectoral minimum wages
Expansion projects must keep or grow jobs; new projects must create jobs
At least 50% of inputs sourced from South African producers, including at least 10% from Black-owned producers or state-owned enterprises
How much funding is available
Up to 20% of qualifying costs
30% where the project is at least 51% owned and managed by women, youth or people with disabilities
A maximum of R10 million over a two-year investment period
Separate caps for buildings (R1 million), commercial vehicles (R1 million), competitiveness improvements (R1 million) and export raw materials (R500,000)
What the grant covers
New machinery, equipment, tools, jigs and dies, including energy- and water-saving equipment
Production-linked commercial vehicles
Building extensions and leasehold improvements
Competitiveness improvements such as quality certification, IT systems, process improvements and renewable energy
Raw materials for a confirmed export contract
Land, wages, passenger vehicles, VAT, rent and rates are not covered.
Key rules to know before you start
Apply before you buy or start using the assets. Equipment already in use does not qualify.
A deposit of up to 40%, paid no more than three months before you apply, may be accepted if the asset is not yet in use.
Commercial production must start within 180 days of approval.
For expansion projects, any drop in headcount during the incentive period disqualifies the claim.
How we handle your application
Eligibility check: we confirm that your project, B-BBEE level and costs qualify before you commit to any spending.
Application: we prepare the business plan, budget and three-year projections and submit them to the dtic.
Approval: we deal with the dtic's questions until your approval letter is issued.
Claims: we compile each milestone claim, including the auditor's factual findings report, so payments are not delayed.
Frequently asked questions
Can I buy the machine first and apply later?
No. Assets bought and already in use before you apply do not qualify. A deposit of up to 40%, paid no more than three months before applying, may be accepted if the asset is not yet in use.
How much can I get?
Up to 20% of qualifying costs, or 30% if the project is at least 51% owned by women, youth or people with disabilities, to a maximum of R10 million over two years.
What B-BBEE level do I need?
Level 4 or better, both when you apply and at every claim.
Is the grant paid upfront?
No. It is reimbursed after you have spent the money, against approved milestones and once the costs are verified.
Can I reduce staff during the project?
No. On expansion projects any drop in headcount disqualifies the claim.
Based on the dtic MSP guidelines (April 2024) and Interpretation Note 01/2025. Approval is at the dtic's discretion and subject to available funds.