Black Business

Black Industrialist Scheme

The Black Industrialists Scheme (BIS) objectives are to:

  • Accelerate the quantitative and qualitative increase and participation of Black Industrialists in the national economy, selected manufacturing sectors and value chain; 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.

Characteristics of a Black Industrialist:

  • Exercises control over the business
  • Takes personal risk in the business
  • Makes a long term commitment to the business and is a medium to long term investor
  • Be directly involved in the day to day running of the operating and have the requisite expertise in the sector

Characteristics of a Black Industrialist applicant entity:

  • Greater than 50% black ownership and management control
  • Does business in the Manufacturing sector with particular reference to IPAP focus areas
  • Be a qualifying registered legal entity
  • Have a valid tax clearance certificate
  • Be a new operation or be involved in the expanding/ upgrading of an existing operation
  • Have a valid level 4 B-BBEE contributor certificate
  • Have a minimum project investment of R30 million
  • Secure/ increase employment
  • Not commence any part of the project until such time as an approval is obtained

An approved applicant may recover a grant of between 30% - 50% calculated against the qualifying costs incurred, up to a maximum of R50 million where this percentage is based on a combination of economic benefit criteria and the percentage of black ownership.

Qualifying costs include the following:

  • Capital investment
  • Feasibility studies
  • Post investment support such as training and mentorship
  • Business development services


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