Ugu South Coast Development Agency Ugu South Coast Development Agency
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Manufacturing
Park Rynie lndustrial Development.
Clothing and textiles.
Furniture manufacturing and incubation.
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Craft commercialisation.
Timber processing.
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Tourism
Investigate a Special Economic Zone (EPZ),
specifically a Tourism Development Zone (TDZ).
Development of adventure tourism cluster at Oribi Gorge.
Development of a conference/convention centre.
Hotels and beachfront leisure facilities.
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Development of tourist packages for
domestic markets.
African and Asian cuisine outlets.
Horse Shoe Farm Agri-tourism.
Nature/game reserve.
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Mining
Small-scale quarrying.
Formalisation of sand-winning.
Small-scale building material mining.
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Green Economy
Bio fuels production (such as the Hans Merensky project).
Biomass production.
Green buildings, materials and construction products.
Hydropower.
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Solar energy.
Waste and wastewater management.
Water and water technologies.
Wind energy.
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Agriculture
Agri-processing linked to Dube Tradeport.
Timber beneficiation.
Transition from subsistence to commercial farming
(incl Mariculture).
Expansion of macadamia, sugarcane, timber, bananas,
and vegetable production.
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Compartmentalised cold storages.
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Food processing industry opportunities (incl.
fruits and vegetable processing and
canning industry).
Greenhouse farming of cut flowers.
Seed production and processing.
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Infrastructure Development
Port Shepstone and Scottburgh beachfront re-development.
Ugu Sports Leisure Centre.
Small craft harbour.
Margate Airport upgrade.
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Upgrade beach facilities and tidal pools.
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Margate Olympic swimming pool.
Development of a Technology Hub.

Black Business Supplier Development

The BBSDP is a 90:10 cost-sharing grant, which offers support to black-owned enterprises in South Africa, whereby the dti contributes 90% of the cost of a project and the approved applicant 10%. The scheme provides such companies with access to business development services that assist them to improve their core competencies upgrade managerial capabilities and restructure their processes to become more competitive.

Objectives of the incentive scheme
  • To fast track existing SMMEs that exhibit good potential for growth into the mainstream economy;
  • To grow black-owned enterprises by fostering linkages between black SMMEs and the corporate and public sector enterprises;
  • To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises;
  • To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.
Qualifying criteria of the incentive scheme
  • Enterprises that are majority black owned (fifty plus one share) and have a significant representation of black managers on their management team;
  • Enterprises with a maximum annual turnover of R12 million per annum;
  • A key criterion for eligibility is that the enterprise must have a minimum trading history of one year;
  • If the enterprise is registered for less than a year, but has been operating previously, the following proof must be submitted: (registration with local municipality and VAT registration) or invoices to confirm trade activity;
  • Enterprises accessing the scheme must also comply with commercial regulatory requirements applicable to their areas of business, e.g. registration with CIPRO and SARS.
Projects to be incentivised
  • Projects aimed at improving the effectiveness of the management system of an enterprise, e.g. scoping and implementation of production planning and control systems; implementation of quality management systems, such as ISO 9000 and ISO 14000; development of business plans for raising finance (marketing plans and marketing strategies should be part of the business plan). Limited cost-sharing grant support will be made available for the procurement of software and the printing of manuals that support the implementation of “best practice” management systems;
  • Projects aimed at assisting the entry of enterprises into targeted markets, e.g. market research where (a new product is developed); design and development of marketing materials, website design, etc. Limited cost-sharing grant support will be available for the printing of marketing materials. Payment towards the design of marketing material is limited to R18 000 and printing R12 500;
  • Projects that aim to impart specialised, enterprise-specific skills to employees e.g. specialised technical courses, such as computer maintenance and repair courses / jewellery making;
  • Projects aimed at upgrading the capability of the management team of an enterprise through generic training programmes, e.g. executive management development programmes, financial management programmes, seminars on preparation of bids for public and corporate sector tenders, R7 000 per individual and group training is preferred;
  • Payment towards skills training is limited to R15 000 (excluding VAT) per individual and group training is preferred;
  • Payment towards executive management training is limited to R10 000 (excluding VAT) per enterprise and the cost of the training programme should compare favourably with similar programmes;
  • Service providers should be SAQA or SETA accredited.
  • The length of training should not exceed 5 (five) weeks or hundred and sixty notional hours (160);
  • Preference will be given to training that enhances the capacity development of an enterprise;
  • Long-term formal training (e.g. MBA) at accredited institutions like universities will not be incentivised.
Benefits of the incentive scheme
  • The maximum grant amount that a single enterprise can qualify for is limited to R100 000 (one hundred thousand rands);
  • The requested amount should not exceed 25% of the entity’s previous year’s turnover;
  • Enterprises will exercise their own choice in selecting service providers, subject to the constraint that at least three competitive bids are obtained in the selection process. Enterprises do not necessarily have to select the lowest cost service providers. The profile(s) of the service providers must also be submitted;
  • In a case where a higher quote is chosen, a good motivation letter from the grant applicant must be provided.
Applying for the BBSDP Grant. To apply for the BBSDP grant, enterprises submit a completed application form, with the following:
  • A detailed business plan (a suggested format is available);
  • Three (3) sets of comparable quotations for each activity applied for;
  • Submitted quotations must be authentic (i.e. must indicate a registration number, telephone number, fax number, be addressed to the grant applicant and must be signed);
  • If the dti is of the view that quotations are not market related / inflated, the dti reserves the right to obtain competitive quotations for the activities applied for;
  • The preferred service provider must provide samples of work done previously if activities applied for are marketing materials;
  • Motivation for preferred service provider;
  • Proof of registration of enterprises (CK1 or CK2);
  • Turnover projections for next 2 years;
  • Financial statements;
  • Valid tax clearance certificate.
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