1. the dti Incentive Programmes CHEMICALS VALUE CHAIN 09 MARCH 2016 1

2. “A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and development, decent employment and equity, built on the full potential of all citizens”. Vision

3. 3 Mission the dti’s revised Mission is to: Promote structural transformation towards a dynamic industrial and globally competitive economy. Provide a predictable, competitive, equitable and socially responsible environment for investment, trade and enterprise development. Broaden participation in the economy to strengthen economic development. Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to the needs of South Africa’s economic citizens.

4. Strategic Goals Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives Facilitate broad- based economic participation through targeted interventions to achieve more inclusive growth Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner Promote a professional, ethical, dynamic, competitive and customer- focused working environment that ensures effective and efficient service delivery

5. 5 the dti Clusters The work of the dti is organised in terms of the following clusters:- Industrial Development – development of policies & strategies that promote sector competitiveness, growth, job creation & efficient administration of support measures Trade, Investment and Exports - strengthening trade & investment links with key economies; & fostering African development, including through regional and continental integration & development co-operation in line with the New Partnership for African’s Development (NEPAD) Broadening Participation - developing interventions & strategies that promote enterprise growth, empowerment & equity Regulation - development & implementation of coherent, predictable & transparent regulatory solutions that facilitate easy access to redress and efficient regulatory services for economic citizens. Administration and Co-ordination - effective co-ordination of departmental programmes and provision of necessary support for efficient implementation.

6. INCENTIVE SCHEMES CLUSTERINCENTIVE SCHEME MANUFACTURING INVESTMENT 12i Tax Incentive Support Programme for Industrial Innovation (SPII) Technology and Human Resources for Industry Programme (THRIP) COMPETITIVENESS INVESTMENT Manufacturing Competitiveness Enhancement Programme (MCEP) Sector Specific Assistance Scheme (SSAS) Export Marketing & Investment Assistance (EMIA) Capital Projects Feasibility Programme (CPFP) BROADENING PARTICIPATION Incubator Support Programme (ISP) Black Industrialist Scheme (BIS) INFRASTRUCTURECritical Infrastructure Programme IDZs and SEZs

7. MANUFACTURING CLUSTER PRODUCTPURPOSETARGETOFFERING 12i INVESTMENT AND TRAINING ALLOWANCE To promote industrial upgrading and new investment in manufacturing Medium to large manufacturers with investment between R50m and R1.5bn Training allowance: max R36 000 per person Max 55% of qualifying investment costs in machinery & equipment. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) To promote the development of new products and or processes Entities engaged in pre- competitive development activity in manufacturing, services or software development Non taxable grant 50%- 80% ≤ 25% BEE shareholding 50% grant > 25% but ≤ 50% BEE shareholding 50% grant >50% shareholding by women or people with disabilities – 75% grant > 50% BEE shareholding – 85% grant 7

8. BROADENING CLUSTER PRODUCTPURPOSEQUALIFYING PROJECTS OFFERING TECHNONOLY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME (THRIP) To encourage public- private to develop and nurture sustainable businesses. South African registered legal entity Industry Associations (Partnership with) Public Institutions of Higher Learning Science Engineering and Technology Institutions National Research Facilities Applied Research (Science, Engineering and Technology to improve the industry competitiveness. Innovation leading to prototype or new process. Registration and litigation of costs of patents Clearly defined scientific and technology and human resource output expected per each year of support. Demonstrate the need for THRIP R200 000 per student (additional R50 000.00 if 75% of students are black and females) Maximum of R8 mil over 3 years 90% SMME level 1 BBBEE 80% LEV 2 BBBEE 75% SMMEs 50% large businesses 8

9. 12I Tax Allowance for Eastern Cape Per Sector (2014/15) 9 Chemicals Projected investment R319 741 060 Tax allowance approved R239 805 795 Training allowance approved R720 000 Projected jobs 20

10. COMPETITIVENESS CLUSTER PRODUCTPURPOSETARGETOFFERING Manufacturing Competitiveness Enhancement Programme (MCEP) Improve Manufacturing Competitiveness South African Manufacturers and Services Supporting Manufacturing Cost sharing grant for Capital investment; 50% - 30% & 10% bonus Green Technology & Resource efficiency improvement 50%-70% Enterprise-level competitiveness improvement; 70% - 50% Feasibility studies; 70% - 50% Cluster competitiveness improvement; 25% MVA 100% black shareholding 25% MVA historical total assets cost of R5million & less than R30 million 20% MVA historical total assets cost of R30million & less than R200 million 10% MVA historical total assets cost s above R2mil Export Marketing and Investment Assistance (EMIA ) To develop export market for SA goods and services and recruit FDI Export ready manufacturers and service providers. Cost sharing grant for exhibition costs, marketing material & research in foreign markets Capital Projects Feasibility Programme Promote the export of South African capital goods and services Capital goods sectors and consulting engineers Cost sharing grant (max 55%) for feasibility study costs 10

11. 11 EASTERN CAPE MCEP VALUE AND NUMBER OF APPROVALS PER SECTOR FOR 2014/15 Agro-Processing R24.3 m (6) Metals R17.6 m (7) Chemicals R3.4 m (3) Non-Metals R4.3 m (2) Furniture & Appliance R2.1 m (1) Services R498 216 (1) Plastics R6 m (3) 2013/14 32 Approvals R101.1 m, 2014/15 23 Approvals R58.4 m Eastern Cape reported R368.9 million worth of projected investment in 2014/15

12. 12 EASTERN CAPE EMIA VALUE AND NUMBER OF APPROVALS PER SECTOR 2014/15 AEROSPACE R196 351 (2) AGRO- PROCESSING R221 388 (3) AUTOMOTIVE R57 000 (1) CHEMICALS R296 234 (4) CULTURAL INDUSTRIES R335 952 (4) ELECTRO- TECHNICAL R76 913 (1) TEXTILES R1 m (12) 26 Approvals R2.2 m

13. BROADENING CLUSTER PRODUCTPURPOSETARGETOFFERING INCUBATION SUPPORT PROGRAMME (ISP) To encourage public- private to develop and nurture sustainable businesses. South African registered legal entity Registered higher education or further education institution Licensed and/or registered science council 50:50 cost-sharing support for large private sector investors 60:40 cost-sharing support for SMMEs Capped at a maximum of R10 million per financial year over a 3 year period. 13

14. ISP: Grant Approved per Province (R’m) 14

15. INFRASTRUCTURE CLUSTER PRODUCTPURPOSETARGETOFFERING CRITICAL INFRASTRUCTURE PROGRAMME (CIP) To leverage strategic investment projects by financially supporting critical infrastructure. Transport systems Electricity and distribution systems Telecommunications systems Transmission systems Sewage systems Waste storage, disposal and treatment systems Fuel supply systems Contractors Municipalities Public private partnerships 30% for direct costs incurred in demolition and constructing infrastructure. 15

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17. 17 CONTACT DETAILS Nopinkie Bentsile Tel: 041 502 9000 NYBentsile@thedti.gov.za Website: www.thedti.gov.zawww.thedti.gov.za Government incentives website: www.investmentincentives.co.za