The Black Industrialists Scheme (“BIS”) is an incentive programme of the Black Industrialist Policy provided by the Department of Trade and Industry (hereafter referred to as “the DTI”). The grant aims to promote the participation of black industrialists as manufacturers in key sectors as identified in the Industrial Policy Action Plan (hereafter referred to as “IPAP”).
The Black Industrialists Programme provides coordinated and explicit guidelines for the promotion and long-term development of black manufacturing entities. It provides a platform to supervise the direction of Black enterprise development; and emphasises Black industrialist significance for national and local economic growth and sustainability.
The main areas of responsibility of the programme are:
- Formulating a Black Industrialist promotion master plan and promotional policies;
- Preparing an action plan for the promotion of sectoral Black-owned manufacturing enterprises;
- Serves as the country’s Black Industrialist information centre and the central organisation;
- Conducting research and studies on Black Industrialist-related issues;
- Developing information systems and networks to support the operation of Black Industrialists; and
- Administering incentives to support Black Industrialists.
A black industrialist is a black person involved directly in the origination, creation, significant ownership, management and operation of industrial enterprises that derive value from the manufacturing of goods and services at a large scale; acting to unlock the productive potential of South Africa’s capital assets for massive employment locally. The following are important elements of being an industrialist:
- Significant influence in an enterprise or industry;
- Control of an enterprise through shareholding;
- Board and executive management control; and
- Production of products (goods and/or services) with significant wide use.
The term “black industrialist” in a general sense refers to those black South Africans who own and, through significant shareholding, control an enterprise whose products are significantly used and have significant impact on decent employment and create broad-based economic opportunities.
The term “black people” is a generic term that includes people of African, Coloured, and Asiatic origin that are citizens of the Republic of South Africa by birth or by naturalisation before 27 April 1994.
The Black Industrialists Scheme Has Identified Businesses in Various Sectors that it Intends to Support
The Black Industrialists Scheme Grant targets entities that have extensive experience, operations and track record in their respective or envisaged industrial sectors and value chains, and with the potential to 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
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 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 investment of (R30m).
9.) Undertake a project which should result in securing or increasing direct employment.
Contact us for more information and assistance in putting together an application conforming to the grant…
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.
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.
Download a full BIS Grant Presentation via the link below:
Black Industrialists Scheme (BIS) Grant Presentation