South Africa


  • Type: Press release
  • Date: 2012/05/16

The Manufacturing Competitiveness Enhancement Programme 

The Manufacturing Competitiveness Enhancement Programme (MCEP) was launched in Cape Town on Monday, 14 May, as one of the key action programmes of the Industrial Policy Action Plan.

The R5.75 billion programme will be available from 4 June 2012 to 31 March 2018, with R1.25 billion budgeted for the year ending 31 March 2013. This incentive programme aims to support manufacturing enterprises in upgrading their plant and thereby support the value-add process.


The MCEP consists of two programmes. The first, Production Incentive, has the subcategories Capital Investment; Green Technology and Resource Efficiency Improvement; Enterprise Level Competitiveness Improvement; Feasibility Studies and lastly, Cluster Competitiveness Improvement, and is managed by the Department of Trade and Industry. The second programme, the Industrial Financing Loan Facilities, consist of a Pre- and Post-Dispatch Working Capital Facility and the Industrial Policy Niche Projects Fund. This programme is managed by the Industrial Development Corporation.


The production incentive will be between seven percent and 15 percent of the manufacturing value added. This incentive may then be allocated in any combination to any of the subcategories of the production incentive. The industrial financing facility will be to a maximum of R30 million at six percent for a period up to four years.


This incentive programme is great news for an industry under tremendous strain. A non-sector-specific programme has been omitted for years in the government suite of incentive programmes. Considering the state of local and international economics, we can only applaud such government initiative in supporting and driving growth in the manufacturing sector.


About KPMG International


KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 152 countries and have 145 000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.





Mark Smith
Associate Director
Industrial, Automotive and Pharmaceutical
Tel: +27 (0)11 647 6815