Entrepreneurs in South Africa will be excited to hear that the Department of Trade and Industry (DTI) intends to invest up to R40bn in supporting black-owned businesses through the Black Industrialist Grant over the next 5 years.
This was announced earlier this week as part of the response to the State of the Nation Address (SONA) where political parties challenged government on how it was going to go to come up with ways to stimulate and industrialise the local economy.
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 initiative offers grant funding for high-growth entrepreneurs who have the goal of building sustainable businesses which can tackle unemployment in South Africa.
The Department of Trade and Industry defines the following as 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;
F. Makes a long-term commitment to the business and is a medium- to long-term investor
Typically, this grant is not suitable for start-up SMEs but is ideal for businesses who have more than 1 year of trading history with financial statements, existing supply or off-take agreements and are able to provide risk capital of their own for the project.
Industries which are typically funded include:
• Blue/Ocean Economy (incl. Vessel Building
• and Repair
• Oil and Gas
• Clean Technology and Energy
• Mineral Beneficiation
• Manufacturing-related Logistics
• Industrial Infrastructure
• Information Communication Technologies
• Clothing, Textiles/Leather and Footwear
• Pulp, Paper and Furniture
• Chemicals, Pharmaceuticals and Plastics
• Aerospace, Rail and Automotive
• Designated sectors for localisation
If you would like professional assistance in applying for this funding, please complete the form below and one of our Problem-Solvers will be in contact with you