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 Africa’s 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 Government’s 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 Government’s Six I’s 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 Africa’s 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 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-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

Industrial Infrastructure

Information Communication Technologies

AgroProcessing

Clothing,Textiles/Leatherand Footwear

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

Africa’s 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

Enquiriesbienquiries@thedti.gov.za

Applications Submissionsbiapplications@thedti.gov.za

the dti website:www.thedti.gov.za

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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 Furniturek. Chemicals, Pharmaceuticals and Plasticsl. Nuclearm. Manufacturing related logisticsn. Designated Sectors for localisation

*NB - 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 dti.

2.4. What does the dti incentive offer to Black Industrialists?The Black Industrialists Scheme offers a cost sharing grant ranging from 30% to 50% to approved entities to a maximum of R50 million.

The quantum of the grant will depend on the level of black ownership and management control, the economic benefi t of the project and the project value.

What does the R50 million grant cover?(a) Capital investment costs; (b) Feasibility studies towards a bankable

business plan (to the maximum of 3% of projected investment project cost);

(c) Post-investment support (to the maximum of R500 000); and

(d) Business Development Services (to the maximum of R2 million)

2.5. How do BIs apply for the dti Black Industrialists Scheme?We encourage applicants to contact the dti for guidance on completing the assessment form and supporting documents.

Fully completed assessment forms must be submitted to the dti for pre assessment and consideration for approval before commencement of the investment project.

Contact details:Enquiries: bienquiries@thedti.gov.zaApplications Submissions: biapplications@thedti.gov.za

Guidelines and application forms are available on: www.thedti.gov.za

2.6. Turnaround time90 days depending on the quality and completeness of the proposal.

*NB: Should there be no fi nancial closure for the BI project within 90 days after grant approval; the BI grant approval will be withdrawn.

2.7. 7. Other dti incentives available to support the BI projects:• Export Marketing and Investment Assistance (EMIA)• Critical Infrastructure Programme (CIP)• Support Programme for Industrial Innovation (SPII)• Technology and Human Resources for Industry Programme (THRIP)• Special Economic Zone (for BI locating or having a linkage to SEZs or IDZs)

2. THE BLACK INDUSTRIALISTS SCHEME (BIS)

• The work of the committee will include co-ordinating and ensuring that SOCs publish long-term procurement opportunities as per SOC’s demand management strategies. Furthermore, its work will include leverage state procurement through PPPFA and targeted procurement for local production, and, in working with retail industry and supermarket chains, facilitate access to domestic supermarket shelves.

• the dti will further champion engagementswith private sectors, to negotiate off-take agreements, enterprise and supplier development, in order to strengthen and empower Black Industrialists. Thus, facilitate localisation and transformation of SOC’s supplier base by increasing capacity and capability of local suppliers, whilst creating linkages with other institutions to enhance synergies that are complementarily to the implementation of the Black Industrialist Policy. All these initiatives will be done with a view of them becoming globally competitive.

• the dti wil l fur ther co-ordinatecollaborations with all spheres of government, to ensure a streamlined access to opportunities and targeted procurement.

• State Owned Enterprise Procurement Forum has already been established to facilitate access to contracts within the procurement rules of each State-owned enterprise.

• AND OTHER NON-FINANCIAL SUPPORTA suite of other support measures will also be made available to increase visibility of Black Industrialists these includes:- Establishing a portal for networking and

match-making- Facilitating mentoring and incubation

of Black Industrialists (BI); the incubation programme of the dti will be tailor made for this purpose.

- Access to Black Industrialists support measures

• The DFIs has already set aside funding commitments in collaboration with the dti to support this programme.

1.6. Policy support measures ...continued

“the dti will further co-ordinate collaborations with all spheres of government, to ensure a streamlined

access to opportunities and targeted procurement.”

Guidelines and application forms are available on: www.thedti.gov.za

2.6. Turnaround time90 days depending on the quality and completeness of the proposal.

“The Black Industrialists Scheme offers a cost sharing

grant ranging from 30% to 50% to approved entities to a

maximum of R50 million.”

“Create multiple and diverse pathways

and instruments for Black Industrialists to enter strategic and

targeted manufacturing sectors and value

chains.”

2 5 How do BIs apply *NB: Should there be no financial closure for the

“We encourage applicants to contact the dti for guidance on completing the assessment form and

supporting documents.”

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1. BLACK INDUSTRIALISTS POLICY AND2. BLACK INDUSTRIALISTS SCHEME (BIS):

An Incentive Scheme of theBlack Industrialists Policy

towards full-scale industrialisationand inclusive growth

INDUSTRIALISTSBLACK

Trade and IndustryDepartment:

REPUBLIC OF SOUTH AFRICA

thedti