The minimum South African content required on projects supported from South Africa is 50%of the loan amount. The exporter must be a resident in South Africa as defined in terms of the Income Tax Act, Act 58 of 1962, as amended.
The exporter must have entered into an export contract with a foreign buyer. South African Content consists of:
- The cost of materials and manufactured goods purchased from South African suppliers less the value of any materials, goods or major components of manufactured goods, which have been imported from sources outside South Africa.
- Wages, salaries and other remuneration paid by the exporter in South Africa to its employees and such portions of wages, salaries and other remuneration payable to the exporters employees who are performing work outside South Africa, and which is paid by the exporter in South Africa.
- Freight charges paid in South Africa.
- Insurance premiums paid in respect of a policy issued in South Africa.
- Finance charges excluding any interest for post-delivery finance paid to any financial institution normally operating in South Africa.
- Fees and charges paid for any other services performed in South Africa on the exporters behalf by a South African resident organization.
- Fees and profits accruing to the exporter.