The DTIC is instrumental in advancing the objectives of the Black Industrialists Policy. This policy, initiated in 2015, was developed to enable black South Africans to gain ownership and control of enterprises in key sectors and value chains of the economy. The DTIC’s role is pivotal in providing grant funding to applicants who seek to establish a foothold in these productive sectors. By doing so, the DTIC not only supports the creation of new enterprises but also complements existing transformation policies .
Black Industrialists Scheme (BIS) and Its Advantages
The BIS is a key tool in the DTIC’s arsenal to stimulate the development of sustainable and competitive enterprises. It specifically addresses the historically low representation of black industrialists with majority ownership, providing them the necessary support to transform their organisations into viable and sustainable enterprises. This aligns with the national priorities of local economic development and economic inclusivity.
The scheme offers both grant funding and loan funding, involving a collaborative effort with institutions like the IDC, NEF, commercial banks, and equity funders. Here are some of the advantages of the BIS:
- Co-Funding Support: The BIS offers a cost-sharing grant ranging from 30% to 50% of approved funds, up to a maximum of R50 million. This co-funding approach reduces the financial burden on the industrialist and enhances the feasibility of large-scale projects.
- Diverse Funding Options: The scheme supports capital investments in machinery, equipment, property, commercial vehicles, feasibility studies, and business development services like product design and IT systems.
- Encouraging Entrepreneurial Involvement: The black industrialist must be directly involved in the day-to-day running of the operation and possess expertise in the sector. This ensures that the businesses not only benefit financially but also develop strong leadership and management skills .
- Job Creation and Economic Impact: Projects funded under BIS are expected to secure or increase direct employment, contributing significantly to job creation and economic growth.
- Focus on Manufacturing: For those in the manufacturing sector, the BIS provides a substantial boost, enabling them to invest in state-of-the-art machinery and technology, which is fundamental for staying competitive.
Conclusion
The DTIC, through its Black Industrialist Policy and the BIS, offers a unique and advantageous platform for Black Industrialists, particularly in the manufacturing sector. By leveraging these opportunities and adopting strategies such as collaborative approaches, data-driven decision-making, and stakeholder engagement, Black Industrialists can significantly contribute to South Africa’s industrial and economic landscape.