“How do I apply for the Black Industrialist Scheme grant funding?”
When reviewing our web statistics, this is one of the most common referring search phrases.
With this in mind, we have decided to share some supporting information about the incentive and what you will require to access it.
What is the Black Industrialist Scheme (BIS)?
The purpose of 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 IPAP and other government policies.
The incentive out of the Department of Trade, Industry and Competition (DTIC) provides up to R50m in grant funding to qualifying entrepreneurs who are looking to build industrial and manufacturing businesses.
The below video gives you an overview of the incentive.
The Black Industrialist Scheme (BIS) is matched funding not an outright grant
It is important to note that when you are applying for funding out of the BIS, you need to understand that this grant is “matched” funding and not a stand-alone funding mechanism.
If you are making use of co-funding out of the likes of the Industrial Development Corporation (IDC), It is best for entrepreneurs to align their applications for funding from the IDC with the request to the DTIC for the BIS Grant. The main reason is that the DTIC grant is approved on the basis that co-funding has been raised/obtained
Applying for the Black Industrialist Scheme is not a quick process
Entrepreneurs expecting to access the Black Industrialist Scheme (BIS) funding incentive should develop appropriate time-tables.
This will not be a simple case of filling in forms or applying online for finance.
In their report entitled: “South Africa’s Black Industrialists Scheme: Evaluating programme design, performance and outcomes” Teboho Bosiu, Grace Nsomba, and Thando Vilakazi looked at the incentive and how successful it had been.
The report makes for intriguing reading but a key point raised:
“While beneficiaries have expressed a positive view of the need for the programme and the manner in which it has aided their businesses, there are significant administrative problems with the time taken for processing applications, the complexity of application review processes at DTI and other co-funders such as the Industrial Development Corporation (IDC), weak communication and responsiveness of DTI in some cases, and lengthy periods taken for disbursements under the claims-based grant system.”
Should I budget for professional service fees when applying for the Black Industrialist Scheme (BIS)?
When planning to apply for incentives out of the DTIC, many entrepreneurs fail to budget for professional services which are a key part of the application process.
This will include input from lawyers, accountants, analysts and DTIC incentive consultants who will help guide you through the process.
While each application will be unique, we recommend budgeting between 5% and 7% of the value of the capital you wish to raise as a benchmark for professional service fees. It is important to remember that these costs will be incurred prior to any funds being disbursed.
What documents will I require when applying for the Black Industrialist Scheme?
You will require the following documents when applying for the BIS incentive.
- The claim form;
- The checklist (providing a full list of required documents);
- The credit order instruction form
- The Factual Finding Report (FFR) completed by an accredited auditor; and
- Asset (register) list
- Employee list
- Invoice Reconciliation Sheet
Can you help us apply for the Black Industrialist Scheme (BIS?)
Yes! Absolutely! We have a professional team of consultants with extensive experience in applying for various DTIC grants and incentives including the Black Industrialist Scheme (BIS). They will work with you and help you identify the most appropriate incentives for your project as well as the opportunity to make your business bankable.
If you would like to discuss applying for the Black Industrialist Scheme and would like to setup a consultation, please complete the form below and one of our team will be in contact with you.