Support for innovation in South Africa

The South African government offers a variety of financial and non-financial programmes, funds and incentives to promote innovation.*

These help firms of all sizes access diverse resources to support their product and process innovations.*

*As at February 2022

Programme/SectorWebsiteSupport provided
Agriculturehttps://bit.ly/3JRH6pzSupport to develop agricultural technology innovations, commercialise de-risked technologies and improve the diffusion of appropriate agricultural technologies to small-scale and emerging farmers.
Agro-Processing Support Scheme (APSS)https://bit.ly/3v6ibu8A cost-sharing grant to stimulate investment in agro-processing / beneficiation (agri-business) enterprises to increase capacity, create employment, modernise machinery and equipment, improve competitiveness and productivity, and broaden participation.
Aquaculture Development and Enhancement Programme (ADEP)https://bit.ly/3HbUF15A reimbursable cost-sharing grant towards the costs of machinery and equipment; bulk infrastructure; owned land or buildings; leasehold improvements; and competitiveness improvement activities in marine and freshwater enterprises including fish hatcheries and fish farms, and the production, processing and preserving of aquaculture fish.
Automotive Investment Schemes (AISs)https://bit.ly/35kWawUTo grow and develop the automotive sector through investment in new and replacement models and components to increase plant production volumes, sustain employment and strengthen the automotive value chain. It also offers a non-taxable cash grant for projects that include research and development.
Capital Projects Feasibility Programme (CPFP)https://bit.ly/3p8xTRvFacilitates feasibility studies likely to lead to high-impact projects to stimulate value-adding economic activities, including strengthening the international competitiveness of South Africa’s capital goods sector and allied industries.
Clothing, Textiles, Footwear and Leather Growth Programme (CTFLGP)https://bit.ly/3v8pbGQSupport and funding to grow employment, improve overall competitiveness and grow the clothing, textiles, footwear, leather and leather goods manufacturing industries.
Commercialisation Support Fundhttps://bit.ly/3veVpQZPrepares innovators for follow-on funding through limited support for market testing and validation.
CSIR Contract Research and Developmenthttps://bit.ly/3va6ItxHelps businesses and organisations deliver innovative solutions, in fields that include computer and information science, chemical sciences, biological and environmental sciences, engineering, nanotechnology and aeronautics, as well as medical and health sciences and agriculture.
Enterprise Incubation Programme (EIP)https://bit.ly/3Hbac1gFunding for early stage entities to supply local markets.
European South African Science and Technology Advancement Programme (ESASTAP)https://bit.ly/3paYXzFA collaborative initiative between South Africa and the European Union to  strengthen ties in science, technology and innovation. A range of funding options for projects is sourced from South Africa’s Department of Science and Innovation and the European Commission.
Export Marketing and Investment Assistance Scheme (EMIA)https://bit.ly/3h9keW8Assisting the development of export markets for South African products and services and recruiting new foreign direct investment into the country, including improving companies’ competitiveness by supporting patent registrations, quality marks and product marks.
Global Cleantech Innovation Programme (GCIP)https://bit.ly/3v5OE3BPart of a global initiative to promote clean technology innovation and support entrepreneurs to grow their small, medium and micro enterprises (SMMEs) and start-ups into viable, investment-ready businesses. Services include training, mentoring and access to capital.
Health Business Sectorhttps://bit.ly/3LV1QOYStimulating and supporting the development, registration, manufacture and commercialisation of products and services which address the healthcare needs of the country and support local industry. Services include sourcing investments and providing funding for technologically innovative opportunities.
Industry Innovation Supporthttps://bit.ly/36riPIhThe CSIR in collaboration with the Industry Innovation Partnership Fund gives participants access to large-scale prototyping and pre-commercial manufacturing infrastructure, equipment, expertise and access to business and technical networks. Research, development and innovation activities range from laboratory-scale validation to technology prototyping and pilot manufacture. Fields include biomanufacturing, nanomaterials, biorefining, mining, photonics and biocatalysis.
Innovation for Inclusive Development (IID)https://bit.ly/3LT9toXThe IID’s Project Management Unit provides grant funding, technology development, IP support, business development support, and market access opportunities for grassroots innovators.
Innovation Skills Programmehttps://bit.ly/3IeFBkCProvides an enabling and innovation environment and training to build critical thinking competencies through access to  international programmes and initiatives. Aims to support the progression of technologies from proof-of-concept stage to pre-commercialisation (technology readiness level 3-8).
Investments/funding for innovationhttps://bit.ly/3saHM3hSourcing investments and providing funding for technologically innovative opportunities and driving their commercialisation and exploitation.
Khoebo Innovation Promotion Programme (KIPP)https://bit.ly/3M3z9zsEnabling early stage innovative SMMEs to penetrate the market with locally developed innovations, specifically offering capital and business support in the early stages of commercialisation with particular emphasis on township and rural entrepreneurs, grassroots innovators and locally developed innovations.
Manufacturing Competitiveness Enhancement Programme (MCEP)https://bit.ly/3IejzP9Loans to manufacturing companies to stimulate their competitiveness and ensure job retention in the sector.
Pre-commercialisation Support Fundhttps://bit.ly/3JPondVTo support pre-commercialisation activities, e.g. market testing and validation of the technology in the potential customer environment, as well as bridging finance.
Research and Development Tax Incentivehttps://bit.ly/3haZ365Tax deductions offered under section 11D of the Income Tax Act (Act 58 of `1962).  To be eligible a company of any size, in any sector of the economy, must engage in eligible R&D activities in South Africa. These must be approved by the Minister of Science and Innovation. At corporate tax rate of 28%, the incentive translates into 14 cents per Rand spent on R&D.
Sector funding through TIAhttps://bit.ly/3LSi3o1To source investment and provide funding for innovative technology development and commercialisation in key areas in specific sectors including: waste management, water and mining products and services; the energy industry (renewable energy, energy storage, distributed generation and hydrogen fuel cells in particular); ICT products and services; and the advanced manufacturing industry.
Small Enterprise Development Agency (SEDA) Technology Programme (STP) – Incubation Programmehttps://bit.ly/3JJkNlNSupports technology and market validation, process and product development, small-scale manufacturing, market entry and market development.
Small Enterprise Development Agency (SEDA) Technology Programme (STP) – Quality Standards and Technology Transfer Fundhttps://bit.ly/35lzhZWProvides funding to enhance the competitiveness and sustainability of small enterprise in South Africa by promoting quality and excellence as competitive tools for SMMEs.
Seed Fundhttps://bit.ly/3IgDb56To assist with bridging finance to translate research outputs into fundable ideas for commercialisation (technology readiness level 3-8).
Small Enterprise Finance Agency (SEFA) Fund of Fundshttps://bit.ly/3vh6ssyA portion of the fund targets SMMEs in innovative sectors, including technology as well as new and emerging industries, typically with locally developed IP and technologies with significant potential to scale. Funding provided is mainly in the early stages of development as SMMEs progress through the technology readiness and commercialisation stages. This will also be used as a catalyst to attract second round funding and support for industrialisation of large-scale R&D initiatives. Funding provided will be a combination of debt and equity.
South African Biodesign Initiative (SABDI)https://bit.ly/35kXmAoSupport for collaborative and integrative research projects focusing on functional genomics, structural biology, synthetic biology and systems biology and projects with cross-functional application (technology readiness level 2).
Strategic Partnership Programme (SPP)https://bit.ly/3Ha2YL2Develops and supports programmes or interventions aimed at enhancing the manufacturing and services capacity of suppliers with linkages to strategic partner supply chains, industries or sectors.
Support Programme for Industrial Innovation (SPII)https://bit.ly/36rmQMNProvides financial assistance for the development of innovative products or processes, focussed specifically on the development phase, which begins at the conclusion of basic research and ends at when a pre-production prototype has been produced.
Technology Development Fundhttps://bit.ly/3p8wg6ySupports the development of technologies from proof-of-concept leading to product prototype and ultimately demonstration in an operating environment (technology readiness level 4-7).
Technology Platform Programme (TPP)https://bit.ly/35ip2FMCreating and enabling access to life science infrastructure and services, supporting development and commercialisation of life science research projects, products and services, and accelerating the commercialisation and uptake of platform research projects and technologies (technology readiness level 3-7).
Technology Innovation Cluster Programmehttps://bit.ly/3IsjCHjSupporting the creation of multi-disciplinary clusters along a technology development value chain with stakeholders fulfilling different functions: technology incubatory access and support, business incubatory access and support, and access to funding.
Technology and Human Resource for Industry Programme (THRIP)https://bit.ly/3h9UDw6A partnership programme of the dti that promotes collaboration between industry and academia and science councils, and enhances competitiveness in South African industries through new technology and skills generation.
Technology Localisation Implementation Unithttps://bit.ly/3BJ7sqXRaises the capabilities of local manufacturing companies so that they can earn a share of recapitalisation investments and, ultimately, enter export markets as competitive suppliers into Original Equipment Manufacturers (OEM) global supply chains.
Technology Stations Programmehttps://bit.ly/3p79JHfA network of 18 centres with state-of-the-art equipment and experts in specialised fields located at universities of technology to provide science, engineering and technology services to SMMEs and entrepreneurs for product development, product improvement, prototype development and a range of other engineering services.
Technology Venture Capital (TVC)https://bit.ly/33Kb4fIProviding business support and seed capital for the commercialisation of innovative products, processes and technologies. 
Youth Technology Innovation Programmehttps://bit.ly/33KbeUm | https://bit.ly/3LT5VmxCreates and enables access to infrastructure and services, mentoring and incubation, to support development and commercialisation of youth-led technology enterprises. Assistance also for innovators not linked to any science council, higher education institution or small, medium and micro enterprise. Offerings include prototype development at TIA Technology Stations and Technology Platforms, IPP, testing and product certification, stipends towards establishing an enterprise, business coaching and incubation services.

From innovations in large firms to innovation in small- and medium-sized enterprises, these mechanisms are helping to make it easier for firms to access the resources to push forward in their drive to improve their product and processes.*

*As at September 2017

Acronyms | DST = Department of Science and Technology, TIA = Technology Innovation Agency, the dti = Department of Trade and Industry, NRF = National Research Foundation, CSIR = Council for Scientific and Industrial Research, IDC = Industrial Development Corporation, DBSB = Department of Small Business Development

SUPPORT MECHANISM | HOST INSTITUTION(S) SUPPORT MECHANISM GOALS IN BRIEF
R&D Tax Incentive Programme | DSTOffers a tax deduction to encourage locally registered businesses to invest in R&D in South Africa. The R&D tax incentive can be accessed by companies of all sizes and in all sectors undertaking R&D.
Industry Innovation Partnership (IiP) | DSTProvides co-funding to support organised industry partners in their R&D and innovation initiatives. In this initiative, industry actors work together and decide on R&D programmes appropriate to enhancing their competitiveness.
Technology and Human Development Programme (THRIP) | the dti/NRFA triple-helix partnership programme of the dti that promotes collaboration between industry and academia/science councils, and enhances competitiveness in South African industries through new technology and skills generation.
Support Progamme for Industrial Innovation (SPII) | the dtiOffers grants to all South African registered enterprises, in manufacturing or services, that are engaged in pre-competitive development activity leading to the commercialisation of the product, process, system or prototype being developed.
Manufacturing Competitiveness Enhancement Programme | the dti/IDCFinancial support in the form of loans to manufacturing companies to stimulate their competitiveness and ensure job retention in the sector.
Strategic Partnership Programme (SPP) | the dti Develops and supports programmes or interventions aimed at enhancing the manufacturing and services capacity of suppliers with linkages to strategic partner supply chains, industries or sectors.
Seed Fund | DST/TIAAssists researchers from higher education institutions, science councils, technology entrepreneurs and SMMEs to advance their research outputs and ideas towards proof of concept, development of prototypes and business cases.
Technology Development Fund | DST/TIAAssists innovators from higher education institutions, science councils, SMMEs and start-ups to advance technologies along the innovation value chain, from proof of concept to prototyping to technology demonstration.
Commercialization Support Fund | DST/TIAConnects technology innovators from higher education institutions, science councils, SMMEs and start-ups to onward business and investment opportunities, and helps to prepare innovators for follow-on funding, through limited support for market testing and validation.
Technology Stations | DST/TIAA network of 18 centres with state-of-the-art equipment and experts in specialised fields located at universities of technology to provide science, engineering and technology services to SMMEs and entrepreneurs for product development, product improvement, prototype development and a range of other engineering services.
Technology Venture Capital | the dti/IDCProvides funding and business support to small companies at early stages of the commercialisation of innovative products, processes and technologies across all sectors which have the potential to make a significant developmental impact on the South African economy.
Technology  Localization  Programme | DST/CSIRRaises the capabilities of local manufacturing companies so that they can earn a share of
recapitalisation investments and, ultimately, enter export markets as competitive suppliers into the Original Equipment Manufacturers (OEM) global supply chains.
Seda Technology Programme (Stp)| DSBDProvides financial and non-financial support to small enterprises through technology transfer, quality services and business incubation.

Your engagement matters.