Ugu South Coast Development Agency Ugu South Coast Development Agency
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Park Rynie lndustrial Development.
Clothing and textiles.
Furniture manufacturing and incubation.
Craft commercialisation.
Timber processing.
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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.
Development of tourist packages for
domestic markets.
African and Asian cuisine outlets.
Horse Shoe Farm Agri-tourism.
Nature/game reserve.
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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.
Solar energy.
Waste and wastewater management.
Water and water technologies.
Wind energy.
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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.
Compartmentalised cold storages.
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.
Upgrade beach facilities and tidal pools.
Margate Olympic swimming pool.
Development of a Technology Hub.

The Critical Infrastructure Programme

The Critical Infrastructure Programme (CIP) is a non-refundable, cash grant that is available to the approved beneficiary upon the completion of the infrastructure project. The scheme covers between 10% and 30% of the total development costs of the qualifying infrastructure.

In terms of the CIP, the infrastructure for which funds are required is deemed to be ‘critical’ if the investment would not take place:
  • Without the CIP funding contribution;
  • If the infrastructure projects would be executed without the CIP contribution;
  • It can be proven that it would be of a smaller scale, or
  • Lower quality, or
  • Would be established at a later stage than the period than when it was intended.

Without the CIP funding contribution; The CIP supports only the construction of the infrastructure that enables the investment project or the expansion of existing fixed investment. Under no circumstances will the CIP fund the investment itself unless the infrastructure is itself the investment.

Aims of the incentive scheme

The CIP is an incentive for projects that support infrastructure necessary for the establishment investment projects. The key objectives of the programme are to:

  • Support the competitiveness of South African industries by lowering business costs and risks;
  • Provide targeted financial support for physical infrastructure that will leverage strategic investment with a positive impact on the economy;
  • Stimulate upstream and downstream linkages, taking into account government priorities such as growth and employment, BEE, Integrated Rural Development, Urban Renewal Strategies and Spatial Development.
Eligible Entities Entities that could qualify for the CIP grant are:
  • Private sector enterprises that are legal entities, incorporated and registered in terms of the Companies Act (Act No. 69 of 1984, as amended), and any external legal entity registered in terms of Chapter XIII of the Companies Act (Act No. 61 of 1973, as amended);
  • Public sector enterprises (i.e. public entities);
  • Private/public partnerships (PPP) comprising a: o local government and a private legal entity; o local government and a public enterprise; or o public enterprise and a private legal entity; o combination of any of the above. CIP will fund Private Public Partnerships only if they meet the criteria as set down by the National Treasury.
Qualifying infrastructure for the incentive scheme It is intended that:
  • The component of the infrastructure installed or constructed beyond the point of supply i.e. inside the private property/yard/fence of the client company for the sole use by a specific investment project will not be funded under this programme;
  • A project application that is submitted to the Secretariat after the construction of the infrastructure project has commenced shall not be considered;
  • The infrastructure installed or constructed should be accessible to the general public and other investors.
The infrastructure contemplated to qualify under this programme:

Qualifying infrastructure may be the structural foundations or permanent network facilities via which enterprises and society in general receive or supply basic services such as transport, electricity and water, sanitation, telecommunications etc. Examples of infrastructure include roads and bridges, electricity transmission lines, water pipelines, sewers, and telephone lines, as well as their associated generation, storage, purification and other facilities that supply, protect or in any way facilitate the networks and systems.

Mandatory requirements of the incentive scheme

For an application to be considered by the Adjudication Board, the following documents should be submitted with every application:

Applicant’s State of Financial Affairs
  • A guaranteed source of additional funding to complete the infrastructure project is required. (Example: a letter of intent from a financial institution etc);
  • Written undertakings by the source(s) mentioned above stating that a matching grant of at least 70% as additional funding would be provided;
  • Historical audited financial statements for the past three financial years;
  • Projected financial statements for the next three years or over the lifespan of the proposed project.
Commitment to establish investment projects

A written undertaking by the investor that the infrastructure project to be funded will:

  • Service new investment project(s) in South Africa that will contribute to the growth of the economy, which investment project(s) will create direct and indirect employment opportunities as well as the retention of existing employment;
  • Service the expansion(s) of existing investment project(s) in South Africa that contribute to the growth of the economy, which investment project(s) will sustain or retain current jobs and will create additional direct and indirect employment opportunities.
Long-Term commercial viability

Summary information that demonstrates long-term commercial viability of the intended investment project should be attached.

Applicant’s state of tax affairs

A valid Tax Clearance Certificate associated with the applicant, obtained from the South African Revenue Services (SARS).

Compliance with all other statutory regulations
  • Environmental permits;
  • Permits or authorisation regarding land use;
  • Technical drawings, and designs (or at least preliminary designs), including details of capacity and technical specifications of the infrastructure;
  • Health and safety permits;
  • Other permits that may be applicable to the specific project;
  • If in the process of acquiring the necessary permits, proof of considerations by the relevant authorities must be submitted.
Project budget plans

Project plan(s) for the infrastructure project and the expected investment. The project plans should contain the following details:

  • The time-frame and key milestones associated with each main project activity;
  • Description of each of the main project activities and sub-activities associated with the infrastructure project;
  • The financial cost and budget associated with each major project activity. (Applicants are kindly advised that budgets based on “order of magnitude” estimation are not acceptable).
Other relevant documents

The dti reserves the right to request other documentation that may be relevant in its adjudication of the application.

Funding requirements for the incentive scheme 

At the time of submitting an application for funding, applicants must satisfy all requirements as set out in the publication.

Claiming process for the incentive scheme 

The approved beneficiary will be reimbursed in two phases upon receipt of such claims from the entity. The approved amount to be claimed in each of the phases will be determined by the beneficiary.


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