The DTI’s Black Industrialists Scheme (BIS) incentive programme of the Black Industrialist Policy, aims to promote the participation of black industrialists as manufacturers in key sectors as identified in Industrial Policy Action Plan (IPAP).
Business Sectors Supported through the Black Industrialists Scheme (BIS) Grant
The BI Policy targets entities that have extensive experience, operations and track record in their respective or envisaged industrial sectors and value chains, that can 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
With goals aimed at supporting manufacturing companies such as access to finance, access to markets, skills development, standards, quality and productivity improvement.
Eligable Criteria for the Black Industrialists Scheme (BIS) Grant
1.) Be a registered legal entity in South Africa in terms of 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 assistance in putting together a conforming application…
DTI’s Incentives Offerings
- 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)
Qualifying Costs for the Black Industrialists Scheme (BIS) Grant
- 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.
- Feasibility Studies
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.