The SEIF intends to leverage public sector investment that would provide necessary infrastructure by creating an enabling environment for businesses to crowd in investment, mostly in townships, rural areas and the inner city where there is clear business activity taking place.
OBJECTIVES OF INCENTIVE SCHEME
The objective of the programme is to encourage public sector partnerships for the establishment and improvement of the SEIF to support businesses with an intention to improve access, create local economic benefits and optimise the performance of businesses operating in those facilities.
- SEIF is a 50:50 cost-sharing grant made available on a reimbursable basis, where the dti contributes 50% towards qualifying infrastructure projects upon the completion of agreed project milestones.
- the dti’s contribution is capped at a maximum grant of R5 million (vat inclusive) per qualifying applicant.
QUALIFYING INFRASTRUCTURE COSTS
- Shared facility infrastructure refers to the structural foundations, upgrading and maintenance of a multi-purpose facility to be shared by the number of enterprises.
- Qualifying shared infrastructure costs refer directly to the design; installation, construction and erection of the infrastructure and includes the following:
o Warehouse/storage facilities
o Lighting, water (including irrigation for farming) and ablution (including plumbing works)
o Parking, paving (entry and internal roads) and fencing (including walls)
o Shelter/stalls for trading area of vendors
o Cold storage for common use
o Common use tools, equipment and machinery
o Administration and information centre
o Exhibition spaces
o Child care facility for traders
o Business infrastructure (e.g. industrial facilities)
- The eligible applicant must be:
o A municipality of the Republic of South Africa;
o A municipal entity as defined in section one of the Local Government Municipal Systems Act, 2000; or
o A provincial government entity.
- The provincial government can contribute towards the shared economic infrastructure project, but cannot be an applicant under this programme.