EXPORT MARKETING AND INVESTMENT ASISTANCE EMIA

1
EXPORT MARKETING AND INVESTMENT ASISTANCE(EMIA)

• 03 October 2008

2
CONTENTS

• Definition of EMIA
• Goals of EMIA
• EMIA Structure
• EMIA Offerings
• Actual Assistance (Financial Contribution)
• SMME/HDI Classification
• Discussion of EMIA Offerings
• Requirements for EMIA Assistance
• Generic Documents
• How to contact the dti

3
the dti Divisions
Executive Management Unit
Enterprise Industry Development
The Enterprise Organisation (TEO)
External Relations Policy Co-ordination
International Trade Economic Development
Consumer Corporate Regulation
Trade Investment South Africa (TISA)
Marketing
Group Systems Support Services
Regulatory
Strategy and Policy
Client Facing
4
EMIA DEFINITION

• Partially compensate SA exporters for costs
  incurred to
• Develop export markets for SA products services
  such as marketing assistance and research,
  match-making, patent registration
• Recruit new foreign direct investment into SA.

5
EMIA GOALS

• Increase contribution of SMMEs to the economy
• Advance broad-based black economy empowerment
  (BBBEE)
• Increase the levels of direct investment in
  priority sectors
• Increase export market access
• Reposition the economy in higher value-added
  segments
• Bridging the gap between the first and second
  economy

6
EMIA STRUCTURE
EMIA Scheme
TEO Donald Mabusela Tel [phone]
TISA Christiaan Saaiman Tel [phone]
National Pavilions
Individual Missions
Individual Exhibitions
GroupMissions
SSAS CGFP
PMR FDI
7
EMIA OFFERINGS
8
ACTUAL ASSISTANCE

• Assistance is provided on the following basis
• Travel (economy class)
• Daily subsistence
• Transport of samples for specific events
• Development of marketing materials for specific
  events
• Exhibition costs relating to stand rental, stand
  design and set up costs
• Costs of brochures
• Project funding.

9
DEFINITION OF SMALL, MEDIUM AND MICRO-SIZED
EXPORTERS (SMMEs)

• SMMEs must be privately, independently or
  co-operatively owned and managed, and must comply
  with any two of the following quantitative
  criteria
• Annual Turnover less than R40m
• Total assets excluding fixed property must be
  less than R15m
• Less than 200 full time employees

10
Definition of a HDI

• Historically Disadvantaged Individuals
• An SMME
• At least 51 ownership by black person(s), women
  or disabled person(s)
• Persons must be of a South Africa Nationality

11
OBJECTIVES OF NATIONAL PAVILIONS

• Dti objectives
• To showcase our Industry (Grouped stands more
  effective than small individual stands)
• To promote the country in general.
• To promote our firms to Foreign buyers
• Gathering of information (Intelligence)
• Promoting SMMEs / PDIs

12
OBJECTIVES OF NATIONAL PAVILIONS

• Exhibitor objectives
• To promote their firm to Foreign buyers and
  potential Investors.
• To generate sales leads.
• Generate sustainable exports
• Gathering of information (Intelligence)

13
BENEFITS NATIONAL PAVILIONS
14
PROPOSED NATIONAL PAVILIONS 2008/9
Refer to hand-out for the National Pavilion list
for 2008/9
15
OBJECTIVES OF MISSIONS

• Export promotion tool
• Introduce local firms to new or existing markets
• Gaining entry or strengthening existing networks
• Exploit number of Free Trade, Bi-lateral and
  Multi-lateral agreements
• Encourage entry and / or expansion when
  experience is still limited
• First hand experience of market through direct
  contact
• Adjust perception of market potential and
  increase knowledge
• Establishment of networks

16
TYPES OF MISSIONS

• Inward
• Buying Missions, including Missions to local
  events, Lobbying/Bidding Missions and Foreign
  Buyer Assistance.
• Investment Missions, including Lobbying/Bidding
  Missions.
• Outward
• Selling Missions, including Export Seminars and
  Conferences, Market Research Missions,
  Lobbying/Bidding Missions.
• Investment Missions, including Investment
  Seminars and Conferences as well as
  Lobbying/Bidding Missions

17
TYPES OF MISSIONS

• MARKET RESEARCH MISSIONS
• Utilized by Economic Sectors/Industries to
  explore opportunities in new markets and gain
  intelligence.
• LOBBYING/BIDDING MISSIONS
• Utilized by specific industries to lobby/bid for
  international projects or hosting of major
  international events and international inspection
  committees.

18
TYPES OF MISSIONS

• INVESTMENT/EXPORT SEMINARS
• International seminars/conferences with a focus
  on export promotion or foreign direct investment
  recruitment.
• FOREIGN BUYER ASSISTANCE
• Assistance to representatives of major
  international purchasing concerns to visit a
  South African National Pavilion at an
  international trade fair/show to ensure meetings
  with South African exhibitors.

19
BENEFITS GROUP MISSIONS
20
PROPOSED MISSIONS PER REGION 2008/9
21
Individual Exhibition Assistance

• Assistance is granted to individual exporters to
  exhibit products at recognised exhibitions abroad
  where the dti does not provide for a national
  pavilion.

22
BENEFITS INDIVIDUAL EXHIBITION
23
EMIA RESEARCH OFFERING

• Primary Market Research and Foreign Direct
  Investment Research
• Assistance is provided to partially compensate
  exporters for costs incurred in developing new
  export markets or recruiting new Foreign Direct
  Investment into South Africa through personal
  contact by visiting potential buyers/investors in
  foreign countries.
• Registration of patents, trade marks quality
  marks
• Assistance is provided to exporters for costs
  incurred relating to registration of a product in
  a foreign market

24
PMR AND FDI
ASSISTANCE
25
Individual Mission Assistance

• Assistance is provided to South African entities
  organising an inward buying/investment mission to
  enable a prospective buyer/investor to make
  contact with them to conclude export orders or
  attract foreign direct investment.

26
Individual Mission Assistance
27
EMIA POJECT FUNDING

• Sector Specific Assistance Scheme (SSAS)
• Capital Projects Feasibility Programme (CPFP)

28
SECTOR SPECIFIC ASSISTANCE SCHEME (SSAS)

• Has three components
• 1. Generic Funding (TISA)
• 2. Project Funding (TEO)
• 3. Project Funding for the Emerging Exporters
  (TEO)
• The aims of SSAS
• Developing an industry sector as a whole
• Developing new export markets
• Broadening the export base
• Proposing the solutions to factors inhibiting the
  export growth
• Stimulating the participation of SMEs, promoting
  BEE WE in the export sector

29
SSAS QUALIFYING APPLICANTS

• Export Councils (comprising of three or more
  organisations)
• Industry Association (Comprising of five or more
  organisations)
• Joint Action Groups (Comprising of three or more
  organisations)

30
NATURE OF SSAS PROJECTS

• A project is a task with a pre-determined
  outcome, a defined or short-term time frame and
  measurable milestones
• The project must be essentially developmental in
  nature. Routine and administrative activities of
  the applicants organisations are not considered
  as projects
• Any research / study undertaken or databases
  obtained will become the property of the dti

31
SASS OFFERING

• The SSAS will support the development of such
  partnership through the provision of 8020
  matching grants
• 80 from SSAS Fund and 20 from the organisation

32
ROJECT FUNDING FOR THE EMERGING EXORTERS -
OBJECTIVE

• To offer support to projects that promote the
• development of emerging exporters

33
ROJECT FUNDING FOR THE EMERGING EXPORTERS -
SERVICE OFFERED

• Assistance is limited to 100 of the cost of the
  approved projects
• SMMEs contribution
• - R750 for local events
• - R1,500 for international events

34
ROJECT FUNDING FOR THE EMERGING EXORTERS -
QUALIFYING APPLICANTS

• Export Councils
• Industrial Associations
• Provincial Investment Promotion and Economic
  Development Agencies
• Business Chambers
• SEDA

35
Scheme Specific Qualifying Criteria

• Participants/Emerging Exporters
• Enterprises should be in operation for more than
  12 months
• Comply with statutory requirements registration
  with SARS for tax clearance certificate export
  registration with custom excise register with
  CIPRO
• Participate in a structured Export Development
  Programme
• Not exported in the past

36
LIMITATIONS

• Assistance is limited to participating
  entrepreneurs only
• Entities participate four times in this project
  and thereafter graduate and apply directly on
  their own for any of the EMIA schemes
• Minimum of 5 up to a maximum of 20 SMMEs per
  project

37
CAPITAL PROJECTS FEASIBILITY PROGRAMME

• The Fund is a cost-sharing scheme, providing a
  contribution to the cost of feasibility studies
  that are likely to lead to projects outside South
  Africa that will increase local exports and
  stimulate the market for the South African
  capital goods and services.

38
FINANCIAL CONTRIBUTION

• The fund contribution is as follows
• a maximum of 50 for projects outside Africa and
• a maximum of 55 for projects in Africa

39
EXAMPLES OF CPFP PROJECTS

• Expansions beyond the SA borders?
• Identified Opportunity?
• Current Projects
• Golf Course Development
• Residential and Commercial Housing Dev
• Cement Production Plant
• Rail and Roads Development
• Bio-diesel
• Sugar Industry Development

40
REQUIREMENTS (FOR ASSISTANCE)

• Export/production performance of the applicant
• Export/marketing competency of the person
  visiting the foreign country
• Potential or available/accessible
  production/export product capacity
• Extent of export marketing planning
• Type of products for export and local sales
  performance
• Level of labour absorption, location and
  technological requirements
• Industry in which the venture operates or is
  planned
• Membership of an Export Council (not compulsory
  but preferable)

41
GENERIC EMIA DOCUMENTS
42
How to contact the dti
Customer Contact Centre 0861 843 384
Website www.thedti.gov.za