Enterprise development incentives

Highlights
The Government has introduced a programme to support the development of successful black owned enterprises.

Black Business Supplier Development Programme (BBSDP)

The BBSDP is a cost-sharing grant, which offers support to black-owned enterprises
in South Africa to  assist them in improving their competitiveness and sustainability in order to become part of the mainstream economy.

The programme has been revised and now provides grants to a maximum of R1 000 000 (R800 000 will be ring-fenced for tools, machinery and equipment) per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology. The focus is on formal black enterprises that are registered for VAT and that have the potential or capacity to supply goods and services to public and private sector corporations and local, provincial and national government departments on a sustainable basis. The BBSDP will offer a cost-sharing grant of 50 percent of the approved business development services costs of qualifying projects and approved enterprises will contribute 50 percent of the cost. With regard to tools, machinery and equipment, the BBSDP will offer a cost-sharing grant of 35 percent of the approved costs of qualifying equipment with a limit of R800 000.

The revised BBSDP will open for business on 01 April 2010 and will be administered for a period of seven years up to 2016.