THE LOCAL COMPETITIVENESS FUND (LCF)

The Local Competitiveness Fund (LCF) aims to create a more competitive Limpopo. The primary purpose of this fund is to help companies become more competitive in the priority sectors of the Provincial Growth and Development Strategy (PGDS): agri-business, tourism, mining, manufacturing and construction. A key feature of this fund is that it will support organisations to co-operate together in a partnership in order to improve their competitiveness.The LCF can be used in one of two ways: to undertake a Competitiveness Action Plan (CAP); or to implement a Competitiveness Action Plan (ICAP).

Competitiveness Action Plan (CAP)

This supports research or processes which help to identify actions to improve competitiveness of a sector, area, or group of companies. It will typically result in a business plan, financial plan, project feasibility study, or sector competitiveness plan.
Some examples of the type of actions the LCF could support include, but are not limited to:

* Workshops, technical assistance, training and consultation exercises to support formation of a CAP;
* Competitive advantage identification exercises, including costs of experts;
* Research, economic analysis and assessment exercises (value chain, SWOT, sector analysis, market research, training needs assessment); and
* Support for setting up and running of a partnership or group of companies.

Implementation of Competitiveness Action Plan (ICAP)

Some examples of the types of projects which could be funded to strengthen competitiveness under an ICAP include, but are not limited to:

* Consolidating and extending value chains and supply chains in existing markets: for example, moving upstream into processing;
* Providing infrastructure and a service platform for increasing competitiveness of a group of companies or sub-sector: for example, developing an industrial park or logistics hub;
* Improving the operation and provision of business development services related to a specific cluster, value chain or sub-sector;
* Upgrading and developing the skills base of human resources related to a group of organisations, sub-sector or cluster;
* Helping to access new markets and outlets for products and services: for example, co-operative marketing; and
* Facilitating access to investment and loan finance.

Budget and Financial Allocations

The total overall funds available under the LCF are estimated at R59,200,000. The allocations between the two different interventions are as follows:

Competitiveness Action Plan (CAP)

There is an indicative allocation of R16 million to contribute to funding of CAPs up to a maximum of 80% of the total project costs. In terms of amounts, the LCF will finance a minimum of R600,000 and a maximum of R1,200,000 for CAP projects.

Implementation of a Competitiveness Action Plan (ICAP)

There is an indicative allocation of R43,200,000 to contribute to funding of ICAPs up to a maximum of 70% of the total project costs. In terms of amounts, the LCF will finance a minimum of R2 million and a maximum of R7 million for ICAP projects.

What costs are eligible for support under the LCF?

Eligible costs which can be covered by these grant funds include:
* Technical assistance;
* Training costs and study tours;
* Knowledge management, IT and research;
* Common capital expenditure; and
* Project management costs.

Who can apply?

Any legally registered organisation can apply for grant funding as long as the project brings direct benefits to Limpopo province. The applicant must be directly responsible for the preparation and management of a project, and not act as an intermediary.

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