Foreign Investors – Apply for a Foreign Investment Grant from the South African Government
The SA Government encourages foreign businesses to establish factories by assisting with the cost of transporting production machinery to South Africa. This programme is also known as the Foreign Investment Grant (“FIG”)
This benefit is available upon application to companies incorporated in South Africa with a foreign direct shareholding of at least 50%. Costs associated with the transfer of new plant and machinery (excluding vehicles) from abroad will be considered. FIG is conditional on the approval of a project under the EIP – Enterprise Investment programme.
How much?
The lower of the actual qualifying transportation costs or 15% of the cost of new plant and machinery acquired from abroad, limited to SA Rand 10 million.
In order to claim the Foreign Investment Grant, entities must meet the following requirements:
- 50% or greater foreign shareholdings
- Relocated machinery must be new, fully paid for using foreign capital and free of all debt.
Foreign-owned entities can claim for the following expenses related to relocation – freight transportation costs, statutory expenses (including duty, handling, agency costs), insurance, offloading costs and airfare + accommodation for installation technicians.
The Foreign Investment Grant manufacturing incentives are limited to R10 million, or 15% of the relocated machinery’s value, or the actual relocation costs of the qualifying expenses, whichever is lowest.
Find out if your business is entitled to the Foreign Investment Grant – contact us today using the form below, or give us a call for an immediate answer:
Or call one of our advisors for more information on:
Tel: +27 (012)348 5871
Fax: +27 (012)348 3287