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STEP 9: OBTAINING FINANCING FOR YOUR EXPORTS
You are here: Step 9: Obtaining financing for your exports > EMIA > National Pavilions > Types of assistance and financial contribution

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National Pavilions - Types of assistance and financial contribution

Introduction

The Department of Trade and Industry provides different financial contributions and applies different criteria for approval of international versus local National Pavilions. These are discussed below undere the following two headings:

  1. Financial contribution for participation in international National Pavilions
  2. Financial contribution for participation in local National Pavilions

1. Financial contribution for participation in international National Pavilions

The Department of Trade and Industry will provide the following compensation in respect of the types of entities as listed below:

  • HDI's
    • 100% of the costs of an economy class return airfare to a maximum of R13 000: Trade and Industry SA (TISA) makes the provisional arrangements and bears the costs.
    • Approved exhibitors are allowed to claim a subsistence allowance for one day prior to the exhibition official starting date, to ensure that the stand is ready for the opening of the exhibition, and subsistence for the duration of the exhibition. The benefit is R1 800/day.
    • Transport of samples - thedti will appoint a freight forwarder and will pay certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods).
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organisers, sub-contractors and experts to realise National Pavilions successfully.
  • SMME's
    • 100% of the costs of an economy class return airfare to a maximum of R13 000: (TISA) makes the provisional arrangements and bears the costs.
    • Approved exhibitors are allowed to claim a subsistence allowance for one day prior to the exhibition official starting date, to ensure that the stand is ready for the opening of the exhibition, and subsistence for the duration of the exhibition. The benefit is R1 800/day.
    • Transport of samples - thedti will appoint a freight forwarder and will pay certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods).
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organisers, sub-contractors and experts to realise National Pavilions successfully.
  • Other size entity
    • Transport of samples - thedti will appoint a freight forwarder and will pay certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods).
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organizers, sub-contractors and experts to realise National Pavilions successfully.

Criteria for approval for particiaption in international National Pavilions abroad

The Department of Trade and Industry participates in these shows as the Republic of South Africa by means of a National Pavilion or Mini National Pavilion. There is a limited amount of space available on these pavilions, restricting the number of participants, which can be accommodated. Selection is undertaken by the National Pavilions Selection Committee and based on a number of important factors, which consist of the following:

  1. Foreign market demand - thedti foreign economic office recommendation
  2. Product range on SA pavilion
  3. Quality of the products
  4. Number of possible participants allowed
  5. Size of exhibition space available
  6. Time when applications are received i.e. each pavilion has a certain selection date - Applicants should contact thedti to ensure that their complete applications are received timeously for consideration at the selection meeting

Selection is done on a committee basis consisting of the Director Export Promotion, the Deputy Director: National Pavilions, the Project Manager of the particular Pavilion, the Export Council, and the Sector Specialist from Trade and Investment South Africa ((TISA)). One representative per SMME/HDI business will qualify for the travel and subsistence allowance, if applicable. The representative should be a senior executive, and in authority to conclude contracts on behalf of the firm.

Organisations, which qualify to organise mini-National Pavilions, include Export Councils, Industry Associations and Joint Action Groups, which are registered as a section 21 company and recognised officially by thedti.

Once an exhibitor has been approved to participate on a National Pavilion, they will receive a letter of approval stating the approval and the costs covered by thedti, as well as other important information and the conditions which apply. The responsible person from the firm is required to signify their acceptance of the terms and conditions contained in the approval letter, by signing the last page in the space provided, in the presence of two witnesses. This has to be faxed back to the National Pavilions Section of thedti by the date indicated in the letter. Failure to do this can result in the cancellation of the exhibitor's participation in the event and thedti's financial support to the firm.

The Director: Export Promotion may authorise the appointment and funding of foreign specialists to undertake market research, targeting of potential foreign buyers and undertaking promotions on behalf of the approved exhibitors on a National Pavilion. The amount approved for the appointment of a consultant per National Pavilion in a foreign market may not exceed R50 000 per pavilion, payable from the National Pavilions budget (Programme funds). The applicable Export Council/Industry Association has to submit a written request with three quotes from possible marketing specialists to the Director: Export Promotion, motivating the request and detailing the costs.

2. Financial contribution for participation in local National Pavilions in SA

The Department of Trade and Industry will provide the following compensation in respect of the types of entities as listed below:

  • HDI's
    • 100% of the costs of a domestic economy class return airfare to a maximum of R1 200, where the SMME is located more than 200 kilometres from the event.
    • Approved exhibitors are allowed to claim a subsistence allowance for one day prior to the exhibition official starting date, to ensure that the stand is ready for the opening of the exhibition, and subsistence for the duration of the exhibition. The benefit is R800/day and only applications of firms located more than 200 kilometres from the evnt will be considered.
    • Transport of samples - thedti will appoint a freight forwarder and will pay 100% of certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods). Only applications of firms located more than 200 kilometres from the event will be considered.
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organizers, sub-contractors and experts to realise National Pavilions successfully.
  • SMME's
    • 100% of the costs of a domestic economy class return airfare to a maximum of R1 200, where the SMME is located more than 200 kilometres from the event.
    • Approved exhibitors are allowed to claim a subsistence allowance for one day prior to the exhibition official starting date, to ensure that the stand is ready for the opening of the exhibition, and subsistence for the duration of the exhibition. The benefit is 800/day. Only applications of firms located more than 200 kilometres from the event will be considered.
    • Transport of samples - thedti will appoint a freight forwarder and will pay 100% of certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods). Only applications of firms located more than 200 kilometres from the event will be considered.
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organisers, sub-contractors and experts to realise National Pavilions successfully.
  • Other size entity
    • Transport of samples - thedti will appoint a freight forwarder and will pay 100% of certain costs relating to the consolidation of exhibition material and the transport thereof from the point of consolidation to the exhibition and back to the consolidation point in SA, if so desired by the exhibitor. thedti will be responsible for the freight costs of display material up to a maximum of 2000kg or 3 cubic meters. The one shall not exceed the other. Any excess must be paid directly to the appointed freight forwarder. In certain cases, thedti may authorise freight costs, which exceed the above guideline (eg. capital equipment and other large goods). Only applications of firms located more than 200 kilometres from the event will be considered.
    • Exhibition-related costs - thedti makes arrangements and bears the costs. The exhibition and related costs relative to National Pavilions relates to all costs for services provided by exhibition organisers, sub-contractors and experts to realise National Pavilions successfully.

Criteria for approval for participation in local National Pavilions in SA

For the selection of the event the criteria for the selection of an event to qualify for EMIA are listed below:

  • The event should be a recognised event by all industry players in the industry. Assistance will only be towards one domestic event annually.
  • Domestic Pavilions may only be organised at exhibitions which bear the Exhibitions Organisation of South Africa (EXSA) stamp of approval.
  • The initiative to have such an event should be taken by one or more recognised industry players and not by an event management company.
  • The industry association or sector desk should provide motivation and research that such an event will help promote exports and increase the HDI export base.
  • The event should coincide with a well planned mission programme to bring in foreign buyers.
  • The relevant dti Sector Desk or dti responsible division should support the event.
  • Other important criteria include:
    • No funding will be made directly to the event organisers
    • Specific activities will be funded direct to participants in support of the event
    • Other issues with regard to BEE and branding requirements from thedti will be considered

Selection of exhibitors is based on a number of important factors, which consist of the following:

  • Product range on SA pavilion
  • Quality of the products
  • Number of possible participants allowed
  • Size of exhibition space available
  • Time when applications are received i.e. each pavilion has a certain selection date - Applicants should contact thedti to ensure that their complete applications are received timeously for consideration at the selection meeting

Selection is done on a committee basis consisting of the Director Export Promotion, the Deputy Director: National Pavilions, the Project Manager, the Export Council and Sector Specialist from Trade and Investment South Africa. Only one representative per business (SMME/HDI) will qualify for the air travel and subsistence. The representative should be a senior executive, and in authority to conclude contracts on behalf of the firm.

Organisations which qualify to organise Mini National Pavilions include Export Councils, Industry Associations and Joint Action Groups, which are registered as a section 21 company and recognised officially by thedti.

Once an exhibitor has been approved to participate on a National Pavilion, they will receive a letter of approval stating the approval and the costs covered by thedti, as well as other important information and the conditions which apply. The responsible person from the firm is required to signify their acceptance of the terms and conditions contained in the approval letter, by signing the last page in the space provided, in the presence of two witnesses. This has to be faxed back to the National Pavilions Section of thedti by the date indicated in the letter.

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Step 9: more information

Step 9: Obtaining finances/resources for your exports
      Bank financing
      Payment methods as a means of financing
      dti EMIA incentives
            Definitions and terminology
INDIVIDUAL PARTICIPATION INCENTIVE SCHEMES
            Individual Exhibitions (IE)
            Individual Inward-bound Mission (IIBM)
            In-store promotions (IP)
            Primary Market Research (PMR)
GROUP PARTICIPATION INCENTIVE SCHEMES
            Group Inward Buying Trade Missions (IBM)
            National Pavilions (NP)
                  .Types of National Pavilions
                  .Who qualifies for National Pavilions?
                  .Steps involved in applying for assistance
                  .Claims procedures
                  .Exporter advice and responsibilities when attending National Pavilions
                  .Special conditions
                  .Supplementary information
                  .Contact details for National Pavilions
                  .Corresponding with EMIA
                  .Preferred Service Providers
      Payment terms and export financing
      Pricing as a means of financing
      Export receivables
      Foreign currency loans
      Alternative sources of financing

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More information on Step 9
Learning to export... The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
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