BLACK-controlled companies not in good standing with the South African Revenue Service (SARS) and in breach of labour laws could be disqualified from the government’s black industrialists scheme, a policy document released on Thursday shows.
Department of Trade and Industry deputy director-general Malebo Mabitje-Thompson said support for black industrialists should start in earnest "early next year".
She spoke at the release by Trade and Industry Minister Rob Davies of the black industrialists policy, which is aimed at helping black businesses to take part in manufacturing.
The policy document notes that black businesses win a "surprisingly low" share of state procurement, which is tilted in favour of established businesses. It adds that established players also dominated support measures for industrial development.
Mr Davies said SA had no big black-owned industrial companies similar to that owned by Nigerian entrepreneur Aliko Dangote.
The blueprint does not limit itself to creating 100 black industrialists.
The policy paper prioritises businesses aligned to the manufacturing sectors. In order to benefit, companies must be legally registered and "in compliance with all relevant legislation, including employment equity, labour law" and black economic empowerment policies.
Businesses must be "in good standing with SARS" and the qualifying "black industrialists must be directly involved in the day-to-day running of the operation and have the requisite expertise in the field".
Mr Davies said the government was not looking for "just passive shareholders", but people who were prepared to take risks and have "skin in the game". He said: "We don’t want rent seekers."
Mr Davies said the mandates of existing development support institutions would not be changed.
"To white industrialists, we are not saying there is no space for you," said Mr Davies, adding that established players were already benefiting from government incentives.
The policy refers to a Black Industrialists Financing Forum made up of officials responsible for funding decisions at development finance institutions and the department’s incentive division.
"The forum will play an information-sharing and co-ordinating role, which will include pre-assessment of black industrialist applications."
Earlier this year, the department announced a R1bn package including grants to support black industrialists. It is expected to unlock more billions from banks and other investors.
The Industrial Development Corporation has pledged R23bn to support the programme.
Rob Davies. Picture: TREVOR SAMSON
BLACK-controlled companies not in good standing with the South African Revenue Service (SARS) and in breach of labour laws could be disqualified from the government’s black industrialists scheme, a policy document released on Thursday shows.
Department of Trade and Industry deputy director-general Malebo Mabitje-Thompson said support for black industrialists should start in earnest "early next year".
She spoke at the release by Trade and Industry Minister Rob Davies of the black industrialists policy, which is aimed at helping black businesses to take part in manufacturing.
The policy document notes that black businesses win a "surprisingly low" share of state procurement, which is tilted in favour of established businesses. It adds that established players also dominated support measures for industrial development.
Mr Davies said SA had no big black-owned industrial companies similar to that owned by Nigerian entrepreneur Aliko Dangote.
The blueprint does not limit itself to creating 100 black industrialists.
The policy paper prioritises businesses aligned to the manufacturing sectors. In order to benefit, companies must be legally registered and "in compliance with all relevant legislation, including employment equity, labour law" and black economic empowerment policies.
Businesses must be "in good standing with SARS" and the qualifying "black industrialists must be directly involved in the day-to-day running of the operation and have the requisite expertise in the field".
Mr Davies said the government was not looking for "just passive shareholders", but people who were prepared to take risks and have "skin in the game". He said: "We don’t want rent seekers."
Mr Davies said the mandates of existing development support institutions would not be changed.
"To white industrialists, we are not saying there is no space for you," said Mr Davies, adding that established players were already benefiting from government incentives.
The policy refers to a Black Industrialists Financing Forum made up of officials responsible for funding decisions at development finance institutions and the department’s incentive division.
"The forum will play an information-sharing and co-ordinating role, which will include pre-assessment of black industrialist applications."
Earlier this year, the department announced a R1bn package including grants to support black industrialists. It is expected to unlock more billions from banks and other investors.
The Industrial Development Corporation has pledged R23bn to support the programme.
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