Enterprise Investment Programme:

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Enterprise Investment Programme Tourism Support
Programme Bernie Meyer and Mlungisi Mthimunye 25
February 2009
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Presentation Outline

• ENTERPRISE INVESTMENT PROGRAMME (EIP)
• Introduction
• General programme description
• TOURISM SUPPORT PROGRAMME (TSP)
• TSP Strategy
• TSP Overview
• TSP Eligibility Criteria
• TSP Qualifying Activities Assets
• PROGRAMME MANAGEMENT
• Key Programme Principles
• Application Process
• Application Procedure
• Management and Administration

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Enterprise Investment Programme (EIP)
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Introduction

• Enterprise Investment Programme replaces SMEDP,
  which was offered from 2001 to August 2006.
• EIP is made up of the Manufacturing Investment
  Programme the Tourism Support Programme
• The process for developing EIP involved
• NIPF alignment
• the dtis Incentives Review Process
• Impact assessment of SMEDP conducted
• Report by BER on revisions to the SMEDP
• Review of Tourism incentives with DEAT
• World Banks research on SA incentives
• Report on New Investment Incentives, 2000
• Consultations with the dti Sector Desks, IDC,
  NEF, Khula, industry associations and provincial
  economic offices

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General Programme Description

• OFFERING
• Investment grant of 15 to 30 of qualifying
  investment costs
• TARGET PROJECTS
• Establishment of new or expansion projects in
  manufacturing and tourism
• Upgrading of production capability in existing
  clothing and textile production facilities
• Investment by projects capped at R200 million
• Local and foreign owned projects
• PROGRAMME DURATION
• Effective from 21 July 2008 available for 6
  years until 2014

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The Tourism Support Programme
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TSP Strategy
The Tourism Acts mandate is ...
Sustainable GDP Growth
Sustainable job creation
Redistribution and transformation
Increase in tourist volume
Increase in tourist spend
Increase length of stay
. . . through six key objectives . . .
Improve geographic spread
Improve seasonality patterns
Promote transformation
. . . by acting in a focused way to . . .
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TSP Overview

• TARGETED OUTCOMES
• Stimulate job creation outside the traditional
  destination clusters
• Transformation/ Increased BB-BEE participation
• Improved geographic spread of tourism investment
• ELIGIBILITY CRITERIA
• New projects Create a minimum of 8 new jobs,
  Black owned create a minimum 3 new jobs
• Expansion projects Achieve minimum number of
  jobs with minimum of 4 net new additional jobs
• Achieve level (4) BB-BEE contributor status
  scoring gt65 on BB-BEE scorecard
• Project location outside of the 3 metros of
  eThekwini, Cape Town and Johannesburg. Projects
  locating in marginalised areas within these will
  be eligible to apply.

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TSP Eligibility Criteria

• Minimum job requirement

• Wages in line with hospitality sector wages as
  determined by DoL
• Achieve level (4) BB-BEE contributor status
  scoring gt65 on BB-BEE scorecard
• Locate outside Metros of Cape Town, eThekwini
  Johannesburg (marginalised areas in metros
  excluded)

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TSP Qualifying Activities Assets

• QUALIFYING ACTIVITIES
• Accommodation services dedicated to tourists
• Passenger transport services including road,
  rail, water dedicated to tourists (registered in
  SA)
• tour operators
• Cultural services dedicated to tourists
• Recreation services dedicated to tourists
• TYPICAL QUALIFYING ASSETS
• Land an buildings
• Furniture and equipment
• Vehicles
• 2nd hand assets for majority black owned
  enterprises (below R5M)

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Programme Management
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Key Programme Principles
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Key Programme Principles
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Application Process

• Web enabled application process (Online
  application)
• Automation of evaluation and processing
  (Internally)
• Client Relationship Management (Feedback at every
  stage)
• Monitoring and reporting module (Impact
  Assessment)

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Application Procedure
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Management Administration

• Create project teams that can gain knowledge and
  expertise on specific sectors
• Greater focus on more targeted marketing
  packaging material appropriately for targeted
  sectors
• Offer a support package to complement programme
• Work more closely with dti institutions
  (e.g..SEDA, Khula) to allow mentorship of smaller
  projects
• Use BBSDP to deliver investment grant for small
  to micro-enterprises
• Plans and systems to manage application overflows

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Thank you
Queries and information

• TSP Email tspappsq_at_thedti.gov.za
• EIP Website Link http//www.thedti.gov.za/teo/ei
  p.htm
• Telephone [phone]

Contact details
Mlungisi Mthimunye Tel. [phone] Email.
mlungisi_at_thedti.gov.za
Bernie Meyer Tel. [phone] Email.
bmeyer_at_thedti.gov.za