BANKS have put up their hands to be part of the Department of Trade and Industry’s multibillion-rand programme to create 100 black industrialists.
The department’s director-general Lionel October appeared before Parliament’s select committee on trade and international relations on Wednesday to talk about the black industrialists policy.
He said banks had approached the department, offering support for the initiative.
The department side-stepped questions about who would replace Deputy Trade and Industry Minister Mzwandile Masina should he become the African National Congress’s mayoral candidate for Ekurhuleni. Mr Masina has been one of the main campaigners for the programme.
Trade and Industry Minister Rob Davies said last week that the scheme had received pledges of more than R30bn from the Land Bank, the Industrial Development Corporation (IDC) and the Small Enterprise Finance Agency.
Economic Development Minister Ebrahim Patel said last year that the IDC would spend R23bn to fund black industrialists in the next three years.
Mr October explained that the department would make finance available to prospective industrialists on a cost-sharing basis for the procurement of new capital equipment for qualifying entities.
The programme became official state policy this month. It is intended to create a single forum through which black industrialists can access finance and support.
"The financial support ... will depend on the level of black ownership and management, and the project value. Sector-specific dynamics and peculiarities will be taken into consideration when support is offered," Mr October said.
Other support measures will also be available to increase black industrialists’ visibility. These include establishing a portal for networking and mentoring.
The department would monitor and evaluate the policy every three years in collaboration with the Presidency, Mr October said.
The department has put measures in place to prevent window-dressing, and intends setting strict criteria on who qualifies. These include influence in an enterprise or industry, and control through shareholding, as well as board and executive management presence.
Mr October said that given many black businesses were constrained by a lack of collateral and capital, the government had to provide more focused interventions to support black industrial start ups, while continuing to support firms that are broad-based black economic empowerment compliant.
Committee chairman Eddie Makue said it wanted to make sure that the Black Industrialist Programme used a correct approach to address economic challenges.
"Capitalisation and access to markets are critical in supporting black industrialists. The committee welcomes the assurance that this programme will not exclude people, but will prioritise a section of our society that was ignored for too long," he said.
Director-general in the Department of Trade and Industry Lionel October. Picture: TREVOR SAMSON
BANKS have put up their hands to be part of the Department of Trade and Industry’s multibillion-rand programme to create 100 black industrialists.
The department’s director-general Lionel October appeared before Parliament’s select committee on trade and international relations on Wednesday to talk about the black industrialists policy.
He said banks had approached the department, offering support for the initiative.
The department side-stepped questions about who would replace Deputy Trade and Industry Minister Mzwandile Masina should he become the African National Congress’s mayoral candidate for Ekurhuleni. Mr Masina has been one of the main campaigners for the programme.
Trade and Industry Minister Rob Davies said last week that the scheme had received pledges of more than R30bn from the Land Bank, the Industrial Development Corporation (IDC) and the Small Enterprise Finance Agency.
Economic Development Minister Ebrahim Patel said last year that the IDC would spend R23bn to fund black industrialists in the next three years.
Mr October explained that the department would make finance available to prospective industrialists on a cost-sharing basis for the procurement of new capital equipment for qualifying entities.
The programme became official state policy this month. It is intended to create a single forum through which black industrialists can access finance and support.
"The financial support ... will depend on the level of black ownership and management, and the project value. Sector-specific dynamics and peculiarities will be taken into consideration when support is offered," Mr October said.
Other support measures will also be available to increase black industrialists’ visibility. These include establishing a portal for networking and mentoring.
The department would monitor and evaluate the policy every three years in collaboration with the Presidency, Mr October said.
The department has put measures in place to prevent window-dressing, and intends setting strict criteria on who qualifies. These include influence in an enterprise or industry, and control through shareholding, as well as board and executive management presence.
Mr October said that given many black businesses were constrained by a lack of collateral and capital, the government had to provide more focused interventions to support black industrial start ups, while continuing to support firms that are broad-based black economic empowerment compliant.
Committee chairman Eddie Makue said it wanted to make sure that the Black Industrialist Programme used a correct approach to address economic challenges.
"Capitalisation and access to markets are critical in supporting black industrialists. The committee welcomes the assurance that this programme will not exclude people, but will prioritise a section of our society that was ignored for too long," he said.
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