THE BLACK INDUSTRIALISTS SCHEME (BIS)
The purpose of the Black Industrialists(BI) policy is to leverage the state’s 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-financial interventions as described in the Industrial Policy Action Plan (IPAP) and other government policies.
Objectives
- Accelerate the quantitative and qualitative increase and participation of Black Industrialists in the national economy, selected industrial sectors and value chains, as reflected 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, the broader objective is aimed at promoting industrialisation, sustainable economic growth and transformation through the support of black-owned entities in the manufacturing sector and related services linked to the manufacturing sector and related services linked to the manufacturing value chain.
Watch an overview of the BIS here
Focus areas
The programme focuses on the following productive sectors:
- Blue/ocean economy, including vessel building and repair
- Oil and gas
- Clean technology and energy
- Mineral beneficiation
- Aerospace, rail and automotive components
- Industrial infrastructure
- Information communication technologies
- Agro-processing
- Clothing, textiles/leather and footwear
- Pulp, paper and furniture
- Chemicals, pharmaceuticals and plastics
- Nuclear
- Manufacturing-related logistics
- Designated sectors for localisation
Benefits
The BIS offers a cost-sharing grant ranging from 30% to 50% to approved entities, to a maximum of R50 million. The size of the grant will depend on the level of black ownership and control, the economic benefit of the project and the project value.
The BIS offers support on a cost-sharing basis towards:
- capital investment costs
- feasibility studies towards a bankable business plan (to a maximum of 3% of
- projected investment costs)
- post-investment support (maximum of R500 000)
- business development services (maximum of R2 million)
Mandatory conditions
- Be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended) or the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended).
- Be a taxpayer in good standing and must provide a valid tax clearance certificate at assessment and before the grant is disbursed.
- Be involved in starting a new operation or in expanding or upgrading an existing operation or the acquisition of an existing business/operation.
- Be aligned to the productive sectors of the economy within the identified sectors as outlined in
- section 3.4 above.
- Have more than 50% shareholding and management control.
- Have a valid B-BBEE certificate of compliance.
- Be directly involved in the day-to-day running of the operation and must have requisite
- expertise in the sector.
- Have a project with a minimum investment of R30 million.
- Undertake a project that should result in securing or increasing direct employment.
- In addition to the mandatory conditions, the black industrialist will have to achieve at least four of the following criteria to participate in the programme:
Application:
Applicants are required to engage with the Strategic Partnerships and Customer Care Unit within the Incentive Development and Administration Division prior to submitting, for guidance on completing the application form. Failure to comply with the aforementioned requirements will render the submission / application ineligible.
Gauteng & the rest of SA 012 394 9523 or 012 394 9528
Eastern Cape 041 502 9000
Western Cape 021 480 8057
KwaZulu-Natal 031 334 2560
Applicants are requested to contact bienquiries@thedti.gov.za for - programme related enquiries.
Useful links:
Department of Trade and Industry (Owner)
