Promoting localisation in marine manufacturing supply chain

Industry engagement highlights grant assistance

SOUTH AFRICA: Offering financial assistance with the goal to promote localisation of the South African marine manufacturing supply chain, the Aerospace Industry Support Initiative (AISI) presented information on how to apply and benefit from the financial assistance they offer during a stakeholder engagement in Cape Town yesterday.

Co-hosted with the South African Boatbuilders Export Council (SABBEX), the marine industry day attracted participation from a wide variety of suppliers, shipyards and ship repairers.

“You are shining the flag for South Africa as far as boat building is concerned,” Zukiswa Kimani of the AISI told the audience as she explained why they had seen the need to focus on the sector and provide interventions for the boat building industry.

Although initially established for the aerospace industry in 2006, AISI saw a need to include the marine manufacturing sector and, in 2011, decided to provide similar assistance within the maritime space.

“Our aim is to strengthen the domestic capability and help position the sector to be a part of the supply chain as well as promote exports,” she said, adding that 32 companies had already been assisted by the programme representing an investment of R15,6 m.

Assistance for marine class approval is at the forefront of the programme but AISI also provides grants to help advance technological enhancements in marine manufacturing.

Erik Wegman provided an overview of the application process as he highlighted several companies that had been able to successfully take advantage of the programme including Skye Advance, Hop Yachts, Icarus Marine, Paltech, CMT, Carbontech and more.

“By focusing on supporting the manufacturing of marine components, we are hopeful that this will lead to import replacement and the development of the industry,” he told those gathered in the audience.

“We understand that it is difficult to break into the international market and the purpose of today’s engagement is to meet with the industry and provide more information about the programme as well as how to apply,” he added.

Although the AISI programme does support assistance for technological enhancement and marine accreditation approvals, it does not extend to the support of feasibility studies, software licences or infrastructure and equipment purchases.

In addition, non-marine related ISO accreditations are not covered, but companies seeking assistance with this are referred on to the Small Enterprise Development Agency (SEDA) where their progress is continuously monitored.

Both forms of grants provide up to a maximum of R750,000 in assistance, but the AISI also collaborates with other government support programmes. In addition, recipients are not required to provide equity in exchange for the grant and all intellectual property remains with the company.

Issued last year, an invitation for expression of interest in the marine supplier development programme closes towards the end of next month and companies are being urged to apply.

Mary-Clare and Paul Tomes of Hop Yachts, a recipient of AISI assistance, provided some feedback on working within the system, highlighting how regular reporting helps unlock the funds as required.

“It is a very well-run system with good support and actionable milestones,” said Mary-Clare who added that they are now reaching the final stages of the technological enhancement programme that they undertook with AISI funding. “The new moulds have already impacted our production times and helped to contribute to skills development,“ she added.

According to Paul Tomes, the aim of the project was to focus on finding every inch possible to make their vessel offering as compact and efficient as possible. Providing added background about the design concept of their yacht, he confirmed that it had been well received by the intended market segment internationally.

PHOTO: The AISI and SABBEX Marine Industry Day attracted wide participation from the marine manufacturing sector in Cape Town. (© Maritime Review Africa)

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