Incentives for exporters
The government provides various incentives to South African firms to export their
products internationally. Chief among these is the Export Marketing and Investment Assistance (EMIA) scheme, which compensates exporters for costs involved in developing export markets for South African products.
Export Marketing & Investment Assistance
Administered by the Department of Trade and Industry (DTI), the EMIA offers exporters financial assistance with market research, trade missions, and showcasing products and services at international exhibitions, among other things.
Specific schemes include:
- Primary export market research - reimburses the costs of contact with potential clients in international markets (airfares, car rental, daily allowances).
- Individual exhibitions - reimburses a percentage of the costs of participating in trade fairs.
- Outward selling trade missions - helps exporters to make contact with
foreign buyers.
- Inward buying trade missions - puts prospective buyers in contact with South African exporters.
South African manufacturers of products can apply for assistance, as can export
trading houses, commission agents and export councils.
Financial benefits work on a reimbursement basis, with the applicant bearing initial costs and then submitting a claim afterwards (some upfront assistance is available under the National Pavilions scheme). Applications must be submitted at least one month before the event.
See the DTI website for:
The DTI website carries more detailed
information on the following EMIA schemes:
More information:
Other incentives for exporters
Export credit incentives
The Industrial Development Corporation (IDC) makes financing available at reduced rates for selected expansion schemes that are expected to result in increased foreign exchange earnings.
Financing of credit for exporters of capital goods is also
available through the IDC or private sector merchant banks at reduced rates.
Export credit insurance
Under the Export Credit Finance Guarantee Scheme, the Credit Guarantee Insurance Corporation provides substantial export credit insurance to small, medium and micro enterprises (SMMEs).
Export credit insurance provides an exporter with insurance protection against financial loss owing to non-receipt of payment of a legally enforceable debt due and payable by a non-South African importer to the exporter for goods and services delivered. The guarantees are reinsured by the
Department of Trade and Industry.
To qualify, the export transaction must include
substantial South African content of goods and/or services.
Credit facilities are also made available to exporters of capital projects under the
Export Finance Scheme for Capital Projects to allow them to complete
internationally by offering buyers competitive rates denominated in US dollars.
Customs and Excise duty refunds
Provision is made in the Customs and Excise Act for general refunds, as well as a
large number of specific drawbacks and refunds of customs and excise duties, to
exporters. These concessions are available to manufacturers as well as to
merchants who import goods for re-export.
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