1.3. The policy seeks to achieve the following objectives: Accelerate the quantitative and
qualitative increase and participation of Black Industrialists in the national economy, selected industrial sectors and value chains, as refl ected by their contribution to growth, investment, exports and employment; and
Create multiple and diverse pathways and instruments for Black Industrialists to enter strategic and targeted industrial sectors and value chains.
In short therefore the broader objective is aimed at promoting industrialisation, sustainable economic growth and transformation through the support of black-owned entities in the manufacturing sector.
1.4. BlackIndustrialists Defi ned A Black Industrialist is a juristic person
that includes co-operatives, incorporated in terms of the Companies Act (2008) that are owned by black South Africans, as defi ned by the B-BBEE Act, who create and own value-adding industrial capacity and who provide long-term strategic and operational leadership to a business. A Black Industrialist can also be a natural person.
The following are characteristics of a Black Industrialist: Provides strategic and operational
leadership to the business; has a high level of ownership (>50%) and/or exercises control over the business;
Identifi es opportunities and develops business to take advantage of these opportunities (entrepreneurial);
Takes personal risk in the business; Does business in the manufacturing
sector, with particular reference to IPAP focus areas;
and makes a long term commitment to the business and is a medium to long term investor.
While there is a desire to support entities with significant and dominant black ownership and control, it is accepted that there may be a need to include other shareholders to attract relevant skills, fi nance and opportunities.
This policy targets entities that have experience, operations and track record in their respective or envisaged industrial sectors and value chains to expand, start a new operation or acquire an existing enterprise to become a major player in the domestic and/or global markets.
These sectors will be reviewed from time to time, in line with government priorities. Interpretation of the support areas within each sector will be at the discretion of the State.
1.5. Economic developmental impact It envisaged that the industrialists will contribute towards South Africas developmental objectives, such as job creation, exports, skills development, supplier development, industrial decentralisation and localisation. Particular focus will be given to assisting entities owned by women, youth and people with disabilities and based in historically disadvantaged regions when supporting Black Industrialists.
1.6. Policy support measuresSupport will be provided to BIs projects in relation to: ACCESS TO CAPITAL:
Financial support will be provided through concessional loans, investment grants and concessional export insurance funding and export market exploration support.
the dti will work with all development fi nance institutions to assist Black Industrialists. The
Black Industrialist Financing Forum has already been established to facilitate syndicated funding for Black Industrialists. Some of the DFIs have already set aside funding for this purpose. Private sector funders are invited to support the programme. A number of banks have already approached the dti, indicating their interest to partner with Government on this initiative.
ACCESS TO MARKETS AND CONTRACTS The Department will be working with various institutions to facilitate access to market opportunities, these include: State-Owned Enterprises Government departments; Chief Procurement Offi ce Transversal
and Targeted procurement Private Sector companies
The Cabinet approval of the Black Industrialists Policy indicated that the dti will work with State Owned Enterprises Procurement Forum, in order to explore market opportunities, both in government departments, SOEs and in private sector.
the dti will lead this area of work, and the process of amending the current SOEPF MoU has been initiated, the intended objective is to establish a dedicated Black Industrialist State Owned Procurement Forum (BISOEPF), which will focus on facilitating access to procurement opportunities both in private and public sectors. Senior members from all State-owned enterprises will participate in the forum to facilitate access to opportunities for the Black Industrialists, after careful considerations of the capacity, skills requirement and due diligence conducted of the proposals.
...promoting industrialisation, sustainable economic growth and transformation through the support of black-owned entities in the manufacturing sector.
1. THE BLACK INDUSTRIALISTS POLICY1.1. Introduction The Black Industrialists Policy is a key part
of Governments broad industrialisation initiatives to expand the industrial base and inject new entrepreneurial dynamism in the economy as highlighted in the latest iteration of the Industrial Policy Action Plan (IPAP).
This policy complements the BBBEE by focusing support directly at black manufacturers. Current support measures provided to business in general by the department will continue as normal.
In line with Governments Six Is of Industrialisation, Infrastructure, Investment, Innovation, Inclusion and Integration, this policy proposes focused efforts to facilitate inclusion and participation of Black Industrialists in manufacturing activities, with an understanding that more equal
societies tend to grow faster than those that are unequal.
The intention is to contribute towards shifting the demographic composition of South Africas industrial sector and engage the under-utilised source of jobs, revenue, taxes and innovation, which are Black Industrialists.
1.2. Policy Purpose The purpose of this policy is to leverage
the States capacity to unlock the industrial potential that exists within black-owned and managed businesses that operate within the South African economy through deliberate, targeted and well-defined financial and non-fi nancial interventions as described in the IPAP and other government policies.
Such entities should be operating in the manufacturing sectors of the economy in line with the industrialisation path as articulated in the IPAP as follows:
Blue/Ocean Economy, including VesselBuilding and Repair
Oil and Gas MineralBenefi ciation
Aerospace, Rail and Automotive Components
Information Communication Technologies
Pulp, Paper and Furniture
Chemicals, Pharmaceutical and Plastics
Nuclear Manufacturing-related logistics
Sectors designated for localisation
Clean Technology and Energy
Particular focus will be given to assisting entities owned by women, youth
and people with disabilities and based in historically disadvantaged regions.
...contribute towards shifting the
demographic composition of South
Africas industrial sector...
Trade and IndustryDepartment:
REPUBLIC OF SOUTH AFRICA
thedtitowards full-scale industrialisation
and inclusive growth
the dti campus77 Meintjies Street, Sunnyside
Pretoria, Gauteng, 0002
the dtiPrivate Bag X84,
Pretoria, Gauteng, 0001
the dti Customer Contact Centre: 0861 843 384
the dti website:www.thedti.gov.za
2.1. What is the Black Industrialists Scheme?The Black Industrialists Scheme (BIS) is a dti incentive programme of the Black Industrialists Policy which aims to promote the participation of Black Industrialists as manufacturers in key sectors as identifi ed in the Industrial Policy Action Plan (IPAP).
The incentive programme provides key measures aimed at supporting majority black-owned manufacturing companies such as access to finance, access to markets, skills development, quality standards, and productivity improvement.
2.2. The objectives of the BIS are to:a. Accelerate the quantitative and
qualitative increase and participation of Black Industrialists in the national economy, selected manufacturing sectors and value chains; as refl ected by their contribution to growth, investment, exports and employment; and
b. Create multiple and diverse pathways and instruments for Black Industrialists to enter strategic and targeted manufacturing sectors and value chains.
2.3. Who qualify to apply for the BIS?- Black Industrialists as defi ned by the
policy with >50% black shareholding and management control, a minimum project value of R30 million and generate direct employment/jobs.
- The BIS targets entities that have extensive experience, operations and track record in their respective or envisaged industrial sectors and value chains, that can become real players in domestic and or global markets within 10 years of being in the programme through:
New operation or business start-up Current business expansion Acquisition of an existing business
Targeted sectorsSuch entities should be operating in the following manufacturing sectors in line with industrialisation path as articulated by IPAP:a. Blue/Ocean economy, including vessel building and repairb. Oil and Gasc. Clean Technology and Energyd. Mineral Benefi ciation
e. Aerospace, Rail and Automotive Componentsf. Industrial Infrastructureg. Information Communication Technologiesh. Agro-Processingi. Clothing, Textiles/Leather and Footwearj. Pulp, Paper and Furnitur