MSP vs BIS: Which DTIC Grant Fits Your Manufacturing Project?

Both the Manufacturing Support Programme (MSP) and the Black Industrialists Scheme (BIS) help South African manufacturers pay for new machinery, buildings and expansion. But they are built for very different projects, and choosing the wrong one can cost you months. Here is how they compare.

The Short Answer

• MSP suits small and mid-sized manufacturers with B-BBEE Level 1 to 4 that are buying new equipment or expanding capacity. There is no minimum project size, and the grant is capped at R10 million.

• BIS suits larger projects of R30 million or more, in businesses that are more than 51% Black-owned and managed. The grant is bigger, from 30% to 50%, capped at R50 million.

Side by Side

Who Can Apply

• MSP: any South African manufacturer with B-BBEE Level 1 to 4.

• BIS: manufacturers that are more than 51% Black-owned and managed, with the owners involved day to day, B-BBEE Level 1 to 4 and in a priority sector.

Minimum Project Size

• MSP: none.

• BIS: R30 million total project value.

Grant Rate and Cap

• MSP: up to 20% of qualifying costs (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.

• BIS: 30% to 50%, depending on the level of Black ownership and the economic benefits, to a maximum of R50 million.

How You Apply

• MSP: by email to the dtic.

• BIS: only through the dtic's online portal (OIS), since 1 June 2026.

Local Sourcing and Jobs

• MSP: at least 50% of inputs must come from South African producers, and jobs must be kept or created. On an expansion, any drop in headcount disqualifies the claim.

• BIS: projects are scored on seven economic-benefit criteria, such as localisation, green technology and regional spread, and must meet at least four.

Deadlines After Approval

• MSP: commercial production must start within 180 days of approval.

• BIS: financial close must be reached within 90 days of approval.

Five Facts Most Applicants Don't Know

• Neither grant is paid upfront. Both reimburse you after you have spent the money, against approved milestones.

• Under the MSP, a deposit of up to 40% paid in the three months before you apply can still qualify, as long as the machine is not yet in use.

• BIS is often combined with funding from the IDC or NEF, so the dtic grant can be one part of a larger funding package.

• BIS will not pay for buying an existing business, only for expanding it afterwards.

• The dtic charges no fees to process MSP applications or claims.

Which One Should You Choose?

If your project is under R30 million, the MSP is usually the route. If it is R30 million or more and your business is majority Black-owned and managed, BIS normally offers a much bigger grant. You cannot claim from both for the same assets, so it pays to choose correctly from the start.

Not sure which fits your project? Contact Hilder Consulting for a free eligibility check before you commit to any spending.

Based on the dtic MSP guidelines (2024) and Interpretation Note 01/2025, and the BIS guidelines (2024). Approval is at the dtic's discretion and subject to available funds.