Manufacturing Competitiveness Enhancement Programme (MCEP)

this incentive funds small scale manufacturing, market entry and market development

The MCEP is a support scheme which offers manufacturing companies incentives to raise their competitiveness and retain jobs. It has a budget of R5.8-billion over a three-year period.

The MCEP comprises two sub-programmes: the Production Incentive (PI) and the Industrial Financing Loan Facilities which will be managed by the dtiand the Industrial Development Corporation respectively. ÿ

Production Incentive

The Production Incentive is the largest component of the MCEP (80% by Rand value). Calculation of MCEP credits for the Production Incentive for each enterprise will be up to 25% of the manufacturing value added.

Applicants may apply their credits to a combination of any of the following five sub-components of the Production Incentive: ÿ

  • Capital Investment grant;
  • Green Technology and Resource Efficiency Improvement grant;
  • Enterprise-Level Competitiveness Improvement grant;
  • Feasibility Studies grant; and
  • Cluster Interventions grant.

Industrial Financing and Loan Facilities

The Industrial Financing and Loan facilities comprises two components i.e. Pre and post-dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund.

  • Pre/Post-dispatch Working Capital Facility offers a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%.
  • Industrial Policy Niche Projects Fund: projects identified by the dti sector desks and IDC’s Strategic Business Units that focus on new areas with the potential for job creation, diversification of manufacturing output and contribution to exports, that would otherwise not be candidates for commercial or IDC funding, may be eligible for an MCEP grant that may be structured as part of the borrower’s equity contribution


Agro-processing, biofuels, forestry, furniture, timber, paper & pulp

Ms Puleng Botlhole
Tel: +27(0)12 394 1207

Advanced manufacturing, metals fabrication, capital, electro-technical and transport equipment

Ms Magdeline Thwala
Tel: +27(0)12 394 1089

Non-metallic minerals, chemicals, cosmetics, plastics, pharmaceuticals, printing and green industries

Mr Sithembile Tantsi
Tel: +27(0)12 394 1258


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