South African manufacturing companies are set to benefit from an investment initiative dubbed Manufacturing Competitiveness Enhancement Programme (MCEP), a result of a joint venture between investment giants Sage and IQuad.
Through the MCEP, South Africa’s Department of Trade and Industry (DTI) will offer grants of up to R5.75 billion (US$665 million) in the next three years.
According to IQuad, manufacturers to benefit include those who have invested in capital equipment, such as IT processes, green technology and resource efficiency improvements.
The manufacturers can claim between 50 and 70 percent of their IT investment.
Madeleine Parsons, IQuad’s investments incentives managing director, said many companies are not aware of the available government incentives, and nor do they know how to go about applying for them.
“This results in jeopardising the success of the application when they try to do it themselves, IQuad offers manufacturers a start to finish solution ranging from consulting and advice on the applications, to taking care of the actual application and the submission of eligible claims,” she said.
She added that this setup enables companies to focus on their core business while they are assisted in accessing the cash grants they are eligible for.
The joint venture provides value added services to existing and potential South Africa-based clients of Sage and IQuad who wish to upgrade their manufacturing facilities in terms of IT among other sectors.
Parsons added that the venture will also offer manufacturers valuable advice on obtaining the right ERP system for their business, and at the same time identify how they can benefit from the cash grants available to reduce the cost of their IT investment.
“We take our clients by the hand and walk them through the incentives claiming process in order to make sure that they maximise the incentive benefits they can get from the DTI’s MCEP,” she said.
According to the partnership, the DTI incentives will be available for application submission until 2018, intended to help local manufacturers become more competitive by encouraging investment in capital equipment and IT processes.
Sage is recognised worldwide as an innovative, leading supplier of innovative business solutions while IQuad, listed in the JSE, comprises a group of specialist financial and business services companies.