Staff Reporter
The Free State Department of Small Business Development, Tourism and Environmental Affairs (DESTEA) has launched various industrial support incentives aimed at assisting local businesses to kick-start their operations with limited hurdles.
DESTEA MEC Makalo Mohale said when he launched the packages last Friday that the support is aimed at stimulating local domestic manufacturing and production in order to retain and create more jobs in the province.
“The focus for this initiative will be towards Maluti-a-Phofung Special Economic Zone in Phuthaditjhaba as well as Thaba Nchu and Botshabelo industrial areas,” he said during a virtual launch of the support plan.
He said the incentives will ensure that these industrial parks become attractive to potential investors, improve the occupancy rate and thus create much-needed jobs.
“Furthermore, this will ensure that informal and emerging manufacturers have access to proper industrial infrastructure which will allow them to grow their businesses,” said the MEC.
The incentives include rental and set-up cost subsidies and are divided into three categories for established, emerging and informal manufacturers.
- Established Manufacturers’ Incentive: to provide established enterprises involved in manufacturing and industrialisation with factory space rental subsidies – up to R2 million per applicant.
- Emerging Manufacturers’ Incentive: to provide enterprises at the incubation or start-up stage, who are in manufacturing and industrialisation, with factory rental subsidy – up to R1 million per applicant.
- Informal Manufacturers’ Incentive: to provide informal/unregistered manufacturers with factory space rental subsidies, and set-up costs grants to support manufacturing and industrialisation operations – R300 000 maximum per applicant.
“This is a decisive action to enhance the work already done in these areas, this time focusing at propelling SMMEs (small, micro and medium enterprises) in those areas to production levels,” said Mohale.
“Our emphasis is to ensure that our people access opportunities that will ensure that the means of production are in their hands,” he added.
According to Mohale, about 18 000 permanent job opportunities have been created in those areas.
“Our responsibility is to create conducive opportunities to increase these levels of employment opportunities and we believe that the Industrialisation Support Incentives Programme is our answer,” he pointed out.
The province has a budget of about R10.1 million per year for the support scheme over the next three years.
Applications opened on Monday and will be close on June 15.