Black Industrialist Programme
To increase meaningful participation of black-owned companies in the mainstream economy in line with the Industrial Policy Action Plan (IPAP).
The three pillars of the programme are access to 1) funding, 2) markets and 3) non-financial support.
Who Are The Beneficiaries?
The intended beneficiaries are entities that want to expand their current operations or start up a new operation and become self-sufficient within 10 years of participation in the programme. They should be directly involved in the day-to-day running of the business and have the relevant expertise.
The incentive will fund 30% to 50% of the project, capped to R50 million, and a pre-requisite is a co-funder (either a commercial bank or developmental funding institution) to match the grant funding.
The funding covers:
- capital investments (machinery and equipment, owned or leased buildings, commercial vehicles and assets purchased from business development services);
- feasibility studies and post-investment support; and
- business development support such as costs for patents, product development, IT and procurement systems etc.
the dti is rolling out the black industrialist programme through memoranda of agreement (MOAs) with the provinces, which in turn will implement their own programmes. KwaZulu-Natal has already launched its programmes, while MOAs have been signed with the Free State and Mpumalanga.
The black industrialist programme, which kicked off in 2016, has funded 70 companies and assisted with access to markets through memoranda of understanding with commercial banks and state-owned entities.
the dti uses various marketing instruments, such as missions, to give black-owned entities access to markets. There have been several missions into Africa, including Ghana, Nigeria, Uganda, Madagascar and Namibia. Black industrialists are also encouraged to use the Export Marketing and Investment Assistance (EMIA) programmes offered by the dti .
Black Industrialists Success Stories
Microfinish, a 100% black-owned automotive valve guide and valve seat manufacturer, is one of the success stories of the black industrialist programme. The company, which officially launched on 7 July 2017, employs 123 people and exports 95% of its products. Microfinish used the funding from the programme to diversify its offering to include the manufacturing of locomotive valves that were 100% imported. As a result, Microfinish grew its turnover by 60% in 2016 and the workforce increased by 40%.
Another success story is 90% black-owned United Industrial Cables, which manufactures, sells and distributes cables for various applications, including copper, aluminium and steel cables for the mining, transportation, communications industries and power utilities.