Although it was intended to be implemented until July next year‚ the MIP has met with overwhelming interest from industry‚ the DTI says‚ with the result that the six-year budget set aside for the programme has been over-subscribed.
"The MIP was introduced during 2008 with an objective to support investment in new and expansion projects by small and medium-sized enterprises in the manufacturing sector‚" the deputy director-general of the department's industrial development and incentive administration division‚ Tumelo Chipfupa‚ said.
He said that although the programme was intended to be implemented until mid-2014‚ its over-subscription had necessitated its suspension earlier than originally intended.
"As a result of the suspension no new applications will be considered for support under the MIP‚" Chipfupa said.
However‚ the department said all applications that had been registered on the MIP online system before midday on 20 September could still be completed and would be evaluated and considered for support in line with programme guidelines.
Chipfupa said that by the end of June‚ about 2‚000 new and expansion projects in the manufacturing sector had been approved under the MIP‚ with more than R2bn disbursed to enterprises.
More than 200‚ or about 10%‚ of the approved projects were in the form of foreign direct investment (FDI)‚ by both new or already established entities in SA.
Expected FDI investment supported by the programme was more than R13bn. More than 20‚000 jobs were expected to be created and sustained by these enterprises.
"About 1‚000‚ or 50%‚ of all approved projects were from small enterprises with investments of less than R5m per project. These supported more than 30‚000 jobs‚" the department said.
"The department is in the process of considering amendments to the existing Manufacturing Competitiveness Enhancement Programme that will enable the continuation of support for newly establishing manufacturing projects by small and medium-sized enterprises‚" Chipfupa said.
He said announcements in this regard would be made before the end of this fiscal year.
