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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