dtic investment incentives in South Africa: what each pays, who qualifies, how to apply

Part of Investing: guides on bringing capital into South Africa, investing your own money, and the rules that apply.

dtic investment incentives in South Africa are mostly cost-sharing grants: the Department of Trade, Industry and Competition (the dtic) refunds an approved share of what you spend on machinery, buildings, studies, export marketing or jobs, after you prove the spend. Alongside them sit SARS tax incentives, which give a bigger deduction or a lower tax rate rather than cash.

This guide is for business owners and foreign investors planning a factory, an expansion, an export push or a services operation who want to know which programmes are open, what each pays, and how not to disqualify yourself before applying.

This guide was last reviewed on 29 September 2026 and is general information, not legal, immigration, tax or investment advice.

By sector: see how these programmes play out in agro-processing, renewable energy, automotive components and business process outsourcing.

What changed in 2025 and 2026

Several things are different from the version of the rules most websites still describe:

• Online applications for more schemes. From 1 June 2026, applications for the Black Industrialists Scheme and the Agro-Processing Support Scheme must go through the dtic’s Online Incentive Solution (OIS) portal, not email.
• A new tax incentive for electric and hydrogen vehicle production. Section 12V, in operation since 1 March 2026, lets vehicle manufacturers deduct 150% of qualifying investment, according to SARS’s draft interpretation note on section 12V.
• Budget pressure. The dtic rationed new Global Business Services applications in January 2026 and began reviewing the film incentive guidelines in August 2026.
• The enhanced renewable energy deduction has ended. The 125% deduction under section 12BA covered only assets brought into use before 1 March 2025.
• A proposed change for Special Economic Zones. The 2026 Budget Review proposes replacing the connected-party test for the 15% zone tax rate with a check on whether prices are market-related. We have not confirmed whether that has been legislated.

The dtic grant programmes for manufacturers and investors

The dtic’s incentives page lists more than 20 programmes, and its Guide to the dtic Incentive Schemes 2025/26 (dated January 2026) describes them. The summary table further down has the rates side by side. What each is for:

• Manufacturing Support Programme (MSP). Introduced in April 2024, it is now the general grant for new or expanding manufacturers: up to 20% of project costs, capped at R10 million over two years, or 30% for businesses 51% owned and controlled by women, youth or people with disabilities (MSP page). The old MCEP page now sends grant seekers to the MSP and the Black Industrialists Scheme, and loan seekers to the Industrial Development Corporation (IDC).
• Black Industrialists Scheme (BIS). A 30% to 50% cost-sharing grant, up to R50 million, for manufacturers more than 51% black-owned and managed as defined in the B-BBEE Act (BIS page).
• Automotive Investment Scheme (AIS). A non-taxable cash grant of 20% of qualifying investment for vehicle manufacturers and 25% for component and tooling makers. Light vehicle plants must reach 50,000 units a year; component makers need OEM supply-chain turnover of at least 25% of entity turnover or R10 million a year (AIS page, guidelines dated July 2025). For electric vehicles, a February 2024 dtic notice sets 20% for vehicle makers and 35% for component makers and battery assemblers.
• Agro-Processing Support Scheme (APSS). A 20% to 30% grant, up to R20 million over two years, with a possible extra 10% (APSS page). The aquaculture programme (ADEP) pays up to 50%, also capped at R20 million.
• Clothing, textiles, footwear and leather. The IDC runs this growth programme for the dtic. Its guidelines, effective 9 July 2024, describe up to R20 million per applicant as an interest-free loan, 25% of it grant from the start and a further 25% convertible to grant if targets are met.
• Critical Infrastructure Programme (CIP). 10% to 30% of infrastructure costs, up to R50 million, where the investment would not happen or not run properly without that infrastructure. Higher shares apply to agro-processing, projects that cut reliance on the national water or electricity grid, and distressed municipalities (CIP page).
• Capital Projects Feasibility Programme (CPFP). Up to 50% of a feasibility study (55% in Africa), capped at R8 million, for projects outside South Africa that will buy South African capital goods and services (CPFP page).
• Support Programme for Industrial Innovation (SPII). 50% to 85% of development costs up to a pre-production prototype, capped at R2 million or R5 million depending on the scheme (SPII page).

Export, film and services incentives

Export Marketing and Investment Assistance (EMIA) partially refunds exporters for international trade shows, market research visits, inward buying missions and foreign product registration: the 2025/26 guide lists economy-class airfare, a daily subsistence allowance and sample transport among the costs (EMIA page).

Film and television. The foreign film incentive pays 25% of qualifying South African production spend, capped at R25 million, plus 5% for using a black-owned service company. Productions must spend at least R15 million and shoot at least 50% of principal photography, and 21 days, here. The programme is open, but the dtic’s August 2026 notice puts outstanding liabilities at about R255 million on 30 June 2026, says applications are processed first in, first out, and says the Adjudication Committee resumed on 27 August 2026 while guidelines are reviewed.

Global Business Services (GBS) supports operations serving offshore clients. The 2025/26 guide requires at least 50 new offshore jobs within three years for mostly non-complex work (80% youth), or 30 for complex work (60% youth), and a minimum wage of R5,000 a month. A January 2026 notice on the GBS page says existing approvals will be honoured, but new applications will be considered first in, first out as funds allow.

Special Economic Zones: tax and employment benefits

A Special Economic Zone (SEZ) is a designated industrial area, often next to a port or airport, with extra incentives. Invest SA’s SEZ page lists four benefits: a 15% corporate income tax rate instead of the standard 27%, an accelerated building allowance, access to the Employment Tax Incentive, and, inside a customs controlled area, duty-free imports of production inputs and VAT relief.

SARS’s brochure on the SEZ tax incentive says a company qualifies only if at least 90% of its income comes from business within the zone and no more than 20% of its deductible expenses or income comes from transactions with connected persons. Only zones approved by the Minister of Finance count: Coega, Dube TradePort, East London, Maluti-a-Phofung, Richards Bay and Saldanha Bay. A zone can therefore be designated and marketed without its tenants getting the 15% rate, so check before you sign a lease. SARS’s draft guide to income tax benefits in SEZs says section 12R ceases to apply for years of assessment starting on or after 1 January 2031.

Tax incentives run through SARS

Section 12I: closed to new projects

The section 12I tax allowance gave large manufacturing projects an extra deduction of 35% to 55% of new assets (up to R900 million for preferred greenfield projects, and 75% to 100% in an SEZ) plus a training allowance. The dtic states that no applications have been accepted after 31 March 2020, and the 2026 Budget Review shows no 12I tax relief after 2020/21. As at 29 September 2026 we found no official replacement, although many websites still describe 12I as available.

Section 12V: electric and hydrogen vehicles

From 1 March 2026, a motor vehicle manufacturer can deduct 150% of the cost of new buildings, machinery and plant used mainly to produce battery electric or hydrogen-powered vehicles in South Africa. It applies to assets brought into use before 1 March 2036. If the asset is sold or stops being used mainly for this purpose within five years, SARS’s draft note explains that the deduction is clawed back into income.

Illustration only: a manufacturer brings R10 million of qualifying machinery into use. The section 12V deduction is 150% of R10 million, which is R15 million. At the 27% company tax rate, and assuming enough taxable income to absorb it, that deduction reduces tax by R4,050,000.

Section 12B: renewable energy

According to SARS’s draft guide on renewable energy allowances, section 12B allows 100% of the cost of solar PV systems not exceeding one megawatt in the year of first use, and 50%, 30% and 20% over three years for other qualifying renewable assets (wind, larger solar, hydropower up to 30 megawatts and biomass).

Section 11D: research and development

SARS’s R&D incentive page says companies doing scientific or technological R&D in South Africa until 31 December 2033 can deduct 150% of operational R&D spending, if the project is approved by the Minister of Higher Education, Science and Innovation. Spending counts only if incurred within six months before, or after, the Department of Science and Innovation receives the application.

Section 12H: learnerships

SARS’s Interpretation Note 20 sets an annual allowance of R40,000 per learner holding an NQF level 1 to 6 qualification (R20,000 for levels 7 to 10), a matching completion allowance, and more for learners with a disability. It applies to registered learnerships entered into before 1 April 2027. The 2026 Budget Review does not propose an extension, so sign agreements for a planned cohort before that date.

Summary table: incentives and their status at 29 September 2026

Programme	What it supports	Form	Size or rate	Key eligibility	Status at 29 September 2026	Official link
Manufacturing Support Programme	New or expanded manufacturing	Reimbursable grant	20% (30% for some owners), max R10m	SA-registered manufacturer	Listed; email applications	MSP
Black Industrialists Scheme	Black-owned manufacturing	Cost-sharing grant	30% to 50%, max R50m	Over 51% black-owned and managed	Listed; OIS only since 1 June 2026	BIS
Automotive Investment Scheme	Vehicle and component assets	Non-taxable cash grant	20% OEMs, 25% components	Volume and supply-chain tests	Listed; July 2025 guidelines	AIS
Agro-Processing Support Scheme	Agro-processing	Cost-sharing grant	20% to 30%, max R20m	Apply before buying assets	Listed; OIS only since 1 June 2026	APSS
ADEP	Aquaculture	Reimbursable grant	Up to 50%, max R20m	Aquaculture entity	Listed	ADEP
CTFL Growth Programme	Clothing, textiles, footwear, leather	Interest-free loan, part grant	Up to R20m, 25% grant	CTFL manufacturer	Ongoing (IDC desk)	CTFLGP
CIP	Enabling infrastructure	Cost-sharing grant	10% to 30% (more in some cases), max R50m	B-BBEE level 4	Listed	CIP
CPFP	Feasibility studies abroad	Cost-sharing grant	50% (55% in Africa), max R8m	Local content 50% goods, 70% services	Listed	CPFP
EMIA	Export marketing	Partial refund	Per scheme guidelines	SA exporters	Listed; OIS	EMIA
Foreign Film and TV	Foreign productions in SA	Grant	25% (plus 5%), cap R25m	Minimum R15m spend	Open; under review since August 2026	Foreign Film
GBS	Offshore services jobs	Grant	Per GBS guidelines	30 or 50 new jobs	New applications as budget allows	GBS
SPII	Product development	Grant	50% to 85%, max R2m or R5m	IP stays in SA	Listed	SPII
Section 12R (SEZ)	Companies in approved zones	Reduced tax rate	15% instead of 27%	90% of income from zone	Until years starting 1 January 2031	SARS SEZ brochure
Section 12I	Large manufacturing	Tax allowance	35% to 55% of assets	Approved projects only	Closed since 31 March 2020	12I
Section 12V	EV and hydrogen vehicle assets	Tax allowance	150% of cost	Motor vehicle manufacturers	1 March 2026 to 1 March 2036	SARS draft note
Section 12B	Renewable energy assets	Tax allowance	100% or 50:30:20	Used in taxpayer’s trade	In force	SARS guide
Section 11D	R&D	Tax deduction	150% of spend	Ministerial pre-approval	Until 31 December 2033	SARS R&D
Section 12H	Learnerships	Tax allowance	R40,000 a year plus completion (NQF 1 to 6)	SETA-registered agreement	Agreements before 1 April 2027	SARS IN 20

“Listed” means the programme appears on the dtic’s current incentives page with live guidelines and contacts. The dtic publishes no open or closed flag per scheme, so confirm with the programme’s enquiries address before committing money.

What Invest SA and the One Stop Shop do for a foreign investor

Invest SA’s One Stop Shop page says it houses SARS, Home Affairs, environmental authorities, Eskom and the Companies and Intellectual Property Commission (CIPC) under one roof. Its services include company and tax registration, business visa recommendations, critical skills and intra-company transfer visa facilitation, environmental and water-use licences, Eskom connections, incentive identification and referrals to the IDC and NEF. An assigned official maps the approvals your project needs, unresolved bottlenecks go to the dtic Fusion Centre (which it says works to a 60 to 90 day turnaround), and an aftercare programme continues once you are running. The One Stop Shop coordinates. The approvals still come from the departments concerned.

If you need a visa to run the business yourself, read our guide to the South Africa business visa and dtic recommendation. If you are bringing in foreign capital, the rules in our exchange control guide apply from day one.

How incentive applications actually work

Apply before you spend

Several schemes say so in writing:

• APSS: assets bought and taken into use, or costs incurred, before applying are non-qualifying.
• SPII: all costs incurred before a completed application is submitted are excluded.
• Film: apply before the project starts anywhere in the world; a June 2025 dtic notice warns that investment before an approval letter is at the producer’s own risk.
• GBS: the application must come before the qualifying jobs are filled.
• Section 12I: qualifying assets had to be contracted for after approval.
• Section 11D: spending counts only from six months before the application is received.

Expect to be paid in arrears

Most dtic grants are reimbursable: you spend, then claim against approved milestones with an auditor’s factual findings report and supporting schedules. The MSP and APSS want the last claim within six months of the final milestone. Plan cash flow as if the grant arrives late, because the film and GBS notices show it sometimes does.

B-BBEE and local-content conditions

• CIP: the project must reach at least B-BBEE level 4, with a 15-month grace period and a certificate at claim stage.
• Foreign film: level 3 for the production company, and at least 20% of qualifying goods and services from businesses 51% owned by black South Africans.
• AIS and GBS: applicants must be B-BBEE compliant under the scheme guidelines.
• CPFP: minimum local content of 50% for goods and 70% for professional services.

Our B-BBEE scorecard guide explains how levels are measured.

The dtic publishes no standard processing times for these grants, so we quote none.

Common mistakes

• Ordering equipment before the approval letter arrives.
• Assuming every SEZ gives the 15% tax rate.
• Claiming two government incentives for the same cost, which schemes such as the CIP rule out.
• Cutting staff during the incentive period: the APSS, for one, forbids dropping below the 12-month average before the application date.

For smaller businesses, our guide to government funding for small businesses and the government funding finder cover programmes outside the dtic. If the tax side interests you more, see our guide to tax-advantaged investing.

Frequently asked questions

Can a foreign company get dtic incentives?

Usually through a South African registered entity. Most dtic grants require a South African registered applicant, and the CPFP accepts a foreign entity only in partnership with a South African company that submits the application.

Is the section 12I tax incentive still available?

Not for new projects. The dtic says no applications have been accepted after 31 March 2020. Projects approved before then keep their allowances subject to reporting until their compliance period ends.

Will the dtic pay for equipment I have already bought?

Generally not. Schemes such as the APSS and SPII exclude costs incurred before you applied, and the film incentive treats spending before approval as your own risk. Apply first, and wait for the approval letter before committing.

What is the tax rate in a Special Economic Zone?

Qualifying companies pay 15% instead of the standard 27%. The company must earn at least 90% of its income in the zone and operate in one of the six zones the Minister of Finance has approved. The incentive ends for years of assessment starting on or after 1 January 2031.

What does section 12V give electric vehicle manufacturers?

A deduction of 150% of the cost of qualifying buildings, machinery and plant used mainly to make battery electric or hydrogen-powered vehicles in South Africa. It applies to assets brought into use from 1 March 2026 and before 1 March 2036. SARS’s draft note says the deduction is clawed back if the asset is sold or repurposed within five years.

How do I apply for a dtic incentive?

Download the guidelines and application form from the programme’s page on the dtic website, and check whether it now uses the Online Incentive Solution portal, which is compulsory for the BIS and APSS since 1 June 2026 and for EMIA individual applications since 2022. Other schemes still take applications by email.