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7 Facts - The Black Industrialist Scheme - Uzenzele blog

 

It’s official, the Department of Trade and Industry (DTI) has extended the Black Industrialist Scheme (BIS) after hitting their first 100 industrialists a year earlier than targeted.

 

 

The DTI has increased the quota by another 100 beneficiaries over the next 2 years.

 

The Black Industrialist Scheme is:

  1. A cost sharing incentive of between 30% to 50% of total project size, to a maximum of R50 million, i.e. Assume a R150 million project (OPEX plus CAPEX) and that your business qualifies for 30% cost sharing, you receive R50 million as a grant and now only need to raise the remaining R100 million through debt and/or equity.
  2. Up to R50 million in grant capital per applicant, this is money never to be repaid – in exchange for economic development and job creation.
  3. A rebated incentive, i.e. you don’t get the grant in cash to procure the assets you need, you must utilise your debt or equity finance to initiate the process and claim back you spend accordingly.
  4. For commercially viable and bankable manufacturing businesses to invest in establishing or increasing their production capacity (among other investments into the business).
  5. For empowered (majority black-owned) manufacturers with majority black management control.
  6. A process. Preparation of bankable documents and applications should commence as early as possible in order to provide sufficient time for diligent preparation, approval and implementation of your project, with a medium-term implementation timeline expected.
  7. It works. Uzenzele has successfully supported Black Industrialists raise millions in grant funding through the BIS, with a 100% success rate.