The Black Industrialists Scheme (BIS) Grant ·

Black Industrialists Scheme (BIS) Grant Overview

The Black Industrialists Scheme (BIS) is a flagship incentive programme administered by the Department of Trade, Industry and Competition. Through the Black Industrialists Scheme, the department promotes meaningful participation of black industrialists in key manufacturing sectors identified in the Industrial Policy Action Plan. From the outset, the Black Industrialists Scheme focuses on strengthening black-owned manufacturing businesses and accelerating inclusive industrial growth.

Moreover, the programme provides clear guidelines to support the long-term development of black manufacturing enterprises. In addition, it creates a structured framework that guides enterprise development at both national and provincial levels. As a result, the Black Industrialists Scheme plays a strategic role in advancing sustainable economic transformation.

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Strategic Objectives of the Black Industrialists Scheme

The Black Industrialists Scheme drives coordinated industrial development. Firstly, it formulates a promotion master plan and related policies. Secondly, it prepares targeted action plans for sector-specific black-owned manufacturing enterprises.

Furthermore, it serves as a central information hub for black industrialist development. It also conducts research on sector challenges and opportunities. In addition, it develops information systems that support operational efficiency. Finally, it administers financial incentives that strengthen manufacturing capacity and competitiveness.

Therefore, the Black Industrialists Scheme does not merely provide funding; it actively shapes the direction of black industrial growth in South Africa.

Definition of a Black Industrialist

Under the Black Industrialists Scheme, a black industrialist refers to a historically disadvantaged South African individual. This includes African, Coloured, Indian, Asian and Chinese South Africans. Importantly, the individual must participate directly in the creation, ownership and management of a manufacturing enterprise.

Furthermore, the enterprise must derive value from large-scale production of goods or services. In addition, the individual must exercise significant influence and control through shareholding and executive management roles. Consequently, the Black Industrialists Scheme targets entrepreneurs who drive production, unlock capital assets and create sustainable employment.

Targeted Sectors Under the Black Industrialists Scheme

The Black Industrialists Scheme supports businesses with proven experience or strong potential in their sectors. Specifically, it targets entities that can become significant domestic or global players within ten years.

Applicants may qualify through a new start-up, an expansion project or the acquisition of an existing business. Moreover, the programme prioritises manufacturing operations aligned with productive sectors of the economy. Therefore, it supports companies that demonstrate scalability, sector expertise and growth ambition.

In addition, the scheme promotes access to finance, market access, skills development, quality standards and productivity improvement. As a result, participating enterprises strengthen both operational capacity and competitiveness.

With goals aimed at supporting manufacturing companies such as access to finance, access to markets, skills development, standards, quality and productivity improvement.

Eligibility Criteria

1.) Be a registered legal entity in South Africa in terms of the following legislation: 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).

2.) Be registered as a taxpayer in good standing and must, in this regard provide a valid tax clearance certificate at assessment as well as before the grant is disbursed.

3.) Be involved in starting a new operation or in expanding or upgrading an existing operation or the acquisition of an existing business/ operation.

4.) Be aligned to the productive sectors of the economy within the identified sectors.

5.) Have greater than fifty percent (>50%) shareholding and management control.

6.) Have a valid B-BBEE certificate of compliance.

7.) Be directly involved in the day-to-day running of the operation and must have requisite expertise in the sector.

8.) Have a project with a minimum CAPEX investment of R30m.

9.) Undertake a project which should result in securing or increasing direct employment.

Incentives to Qualifying Businesses

Cost sharing grant ranging from 30% to 50% to approved entities to a maximum of R50 million.
Quantum of grant depends on: level of black ownership, management control and the project value.
The maximum grant of R50 million may be utilised for:
1. Capital investment costs;
2. Feasibility studies towards a bankable business plan (to the maximum of 3% of projected investment project cost);
3. Post-investment support (to the maximum of R500 000); and
4. Business Development Services (to the maximum of R2 million)

The Black Industrialists Scheme has Identified the Following Costs as Qualifying Costs

The Black Industrialists Scheme: Capital Costs

Machinery and Equipment (owned or capitalised financial lease), tools, jigs and dyes and forklifts, at cost and will also include green technology, energy and resource efficiency equipment.
Owned and leased (capitalised lease) factory buildings, at cost. The investment in qualifying buildings must either constitute newly acquired buildings or the acquisition of an existing building at cost.
Commercial vehicles (owned or capitalised financial lease) are only eligible if such vehicles are to be used for commercial purposes linked to the production process. This includes vehicles such as for collection, delivery and distribution of goods.

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The Black Industrialists Scheme: Investment Support

Feasibility Studies

The Black Industrialists Scheme: Post Investment Support

Specialised technical training will be supported in selected areas identified by the BI with the assistance of the Development Finance Institutions.
Mentorship guidance will include financial management, operations and production planning, human resource development, administration, marketing and business continuity services.

Dream Team Capital has earned its reputation as the go-to partner for businesses looking to apply for the DTIC’s Black Industrialist Scheme (BIS) grant. We have a strong grasp of the application process, and what sets us apart is our ability to navigate the intricacies of compliance and grant requirements. With a team of experts who know the BIS inside and out, Dream Team Capital works closely with clients to ensure that your applications not only meet all the necessary criteria but also reflect the broader goals of the scheme and compliance. Whether it’s guiding you through the paperwork or offering strategic advice, our approach is designed to increase the chances of securing the funding. For historically disadvantaged entrepreneurs and industrialists, Dream Team Capital isn’t just a service provider – we’re your trusted partner, helping to unlock opportunities that drive real business growth that contributes to South Africa’s industrial transformation.

Download a full BIS Grant Presentation via link below:

Black Industrialists Scheme (BIS) Grant