| (1) | All monies distributed from the Fund must be used to achieve the objects of the Act contemplated in section 2 of the Act and purpose of Special Economic Zones contemplated in section 4 of the Act. |
| (2) | Monies in the Fund may be distributed for: |
| (d) | infrastructure development; |
| (e) | business development and performance improvement; |
| (g) | skills development; and |
| (h) | initiatives to support industrialisation and economic growth and achieve the purpose of Special Economic Zones as identified in the Special Economic Zones Policy (referred to in section 5 of the Act) and Strategy (referred to in section 6 of the Act). |
An applicant contemplated in section 23(1) of the Act may apply for monies from the Fund to conduct a feasibility study to support the establishment, planning and development of a Special Economic Zone.
| (a) | An applicant contemplated in section 23(1) or a licensee contemplated in section 23(6) of the Act may apply for monies from the Fund for nonrecurring start-up costs associated with setting up the Special Economic Zone, including accountant's fees, legal fees, registration charges, marketing costs and employee training. |
| (b) | An applicant or licensee will only be eligible for start-up costs incurred in the first three years of operation of the Special Economic Zone. |
An applicant may apply for monies from the Fund for site preparation necessary to enable businesses to locate within the Special Economic Zone.
| (6) | Infrastructure development |
An applicant may, apply for monies from the Fund for infrastructure development 25 within a Special Economic Zone.
| (7) | Business development and performance improvement |
| (a) | An applicant may apply for monies from the Fund for business development and performance improvement of a Special Economic Zone including expenditure associated with: |
| (i) | improving supplier and supply chain competitiveness; |
| (ii) | initiatives that reduce time between operating cost and revenue breakeven; |
| (iii) | initiatives that reduce utility and facility maintenance costs and result in improved operating models; and |
| (iv) | environmental impact improvement initiatives including green building compliance, emission control, water preservation, waste management and control, waste -to- energy initiatives and energy co- generation initiatives. |
An applicant may apply for monies from the Fund for skills development programmes and initiatives.
An applicant may apply for monies from the Fund in order to deliver services offered by a business incubator to SMEs.
| (10) | Funding options and funding agreement |
| (a) | Monies in the Fund may be awarded in the following manner: |
| (i) | a grant, with conditions; |
| (ii) | a matching, grant with conditions, in terms of which the Fund will provide a portion of the funds applied for and the applicant will provide either: |
| (aa) | funds equal to the amount provided by the Fund; or |
| (bb) | the remaining portion of the total application for funds. |
| (b) | A successful applicant for funds must conclude a funding agreement with the Department regulating the terms and conditions upon which the funds have been granted including: |
| (i) | the purpose for which the funds have been granted; |
| (ii) | the manner in which the use of the funds will be monitored, to ensure compliance with the purpose and terms and conditions on which the funds have been granted; and |
| (iii) | remedies for breach of the funding agreement which may include repayment of funds granted to the applicant and instituting legal proceedings against the applicant to recover funds granted. |
| (11) | The Director -General must monitor the implementation and use of the monies distributed from the Fund and report to the Minister on an annual basis on how the monies distributed from the Fund have been used. |
