Black Industrialists Scheme

The objectives of the Black Industrialists Scheme are to:

• Accelerate the quantitative and qualitative increase and participation of black industrialists in the national economy, selected manufacturing 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 manufacturing sectors and value chains

2. A black industrialist refers to a juristic person, which includes co-operatives incorporated in terms of the Companies Act, 2008 (as amended) that are owned by black South Africans as defined by the Broad-Based Black Economic Empowerment (B-BBEE) Act, that creates and owns value-adding industrial capacity and provides long-term strategic and operational leadership to a business. A black industrialist can be a natural person.

The following are characteristics of a black industrialist:

a. high levels of ownership (>50%);

b. dominant black ownership and management control may be considered for projects that are deemed strategic by the dti, but may need to include other shareholders to attract relevant skills, finance and scale-up the investment opportunities;

c. exercises control over the business;

d. takes personal risk in the business;

e. does business in the manufacturing sector with particular reference to IPAP focus areas;

and

f. makes a long-term commitment to the business and is a medium- to long-term investor

3. Black people refer to African, Coloured and Indian persons who are natural persons and:

a. Are citizens of the Republic of South Africa by birth or descent; or

b. Are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or

c. Became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, had it not been for the Apartheid policy, would have qualified for naturalisation before then.

d. The definition of “black people” now includes South African Chinese people as per the Pretoria High Court ruling on 18 June 2008.

3.4 The key focus areas of the programme will be on the following productive sectors:

a. Blue/ocean economy, including vessel building and repair

b. Oil and gas

c. Clean technology and energy

d. Mineral beneficiation

e. Aerospace, rail and automotive components

f. Industrial Infrastructure

g. Information communication technologies

h. Agro-processing

i. Clothing, textiles/leather and footwear

j. Pulp, paper and furniture

k. Chemicals, pharmaceuticals and plastics

l. Nuclear

m. Manufacturing-related logistics

n. Designated sectors for localisation

Going forward, Business Grants and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining your application for the Black Industrialists Scheme.