IDC SPII Fund
Support Programme for Industrial Innovation (SPII)
The SPII is designed to promote and assist technology development in South African industry through the provision of financial assistance for projects that develop innovative products and/or processes. The SPII is focussed specifically on the phase that begins at the conclusion of basic research (at the stage of proof of concept) and ends at the point where a pre-production prototype has been produced. The Industrial Development Corporation of South Africa Limited (IDC), on behalf of the Department of Trade and Industry (the DTI), manages the programme.
It is important to note that the SPII programme "refunds" claimable expenses - i.e. one needs to have the money to spend on the development work upfront as the grant is only paid later. This needs to be taken into account in terms of cash flow and upfront funding.
The SPII currently consists of three schemes: the Product Process Development, Matching and Partnership Schemes.
The Product Process Development Scheme
Financial assistance is provided for small, very small and micro enterprises (employees under 50; turnover below R13 million; assets below R5 million) in the form of a grant of between 50% and 85% of the qualifying cost incurred during the technical development stage with a maximum grant amount of half a million Rand (R500 000) per project. For enterprises with less than 25% black shareholding - the grant is 50%, but for enterprises with between 25% and 50% women/physically challenged shareholding - the grant amount is 50%, whilst for enterprises with between 25% and 50% black shareholding or more than 50% women/physically challenged shareholding - the grant amount is 75%, and for enterprises with black shareholding is greater than 50%, the grant amount is 85%.
The Matching Scheme
Financial assistance under the Matching Scheme is provided to SMEs (employees under 200; turnover under R51 million; assets under R19 million) in the form of a grant of up to between 50% to 75% of the qualifying cost incurred during the technical development stage - up to a maximum grant amount of three million Rand (R3 000 000) per project. For enterprises with <25% black shareholding - the grant is 50%, for enterprises with between 25% and 50% black shareholding or more than 50% women/physically challenged shareholding, the grant amount is 65%, and for enterprises with black shareholding of greater than 50%, the grant amount is 75%.
The Partnership Scheme
Financial assistance under the Partnership Scheme is provided in the form of a conditionally repayable grant of 50% of the qualifying cost incurred during development activity with a minimum grant amount of one and a half million Rand (R1 500 000) per project, repayable on successful commercialisation of the project. In considering support for a project under PII, there should be a clear indication of the causality (additionality) that will follow from the support.
Visit the SPII website for additional information and to download their documentation.
For applications in which UCT/UCT IP is involved, contact Dr Andrew Bailey or call him on 021 650 2425.
The IDC contact is Mr Farouk Mangera, Senior Fund Manager, Support Programme for Industrial Innovation. Tel 011 269 3607, Or Email:Farouk.