The Manufacturing Competitiveness Enhancement Programme (MCEP) is a key action programme of IPAP2, providing enhanced manufacturing support, encouraging manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value-addition in the short to medium term. The MCEP comprises two sub-programmes: the Production Incentive (PI) and the Industrial Financing Loan Facilities, managed by the dti and the Industrial Development Corporation (IDC) respectively.
The Production Incentive is the largest component of the MCEP at 80% by Rand value. Calculation of MCEP credits for the Production Incentive for each enterprise will be up to 25% of the manufacturing value added.
The Industrial Financing and Loan Facilities
comprise of two components, i.e. Pre- and post-dispatch Working Capital Facility (a working capital facility up to a maximum of R30 million for a period of up to four years, at a preferential fixed interest rate of 6%) and an Industrial Policy Niche Projects Fund (focused on new areas with the potential for job creation, diversification of manufacturing output and contribution to exports, otherwise not candidates for funding).