Black industrialist programme begins

Cape Town - The government’s black industrialist programme is officially up and running after cabinet approval this week.

The aim is to bring together development finance institutions to focus on supporting black industrialists, who are hands-on and personally involved in production, in a drive to boost South Africa’s manufacturing sector.

“They have to real entrepreneurs in an industrial economy,” said Trade and Industry Minister Rob Davies yesterday, adding the programme was not available to those who have been looking for government money to dress up a business plan. “This is a particular focused programme to promote a sub-category… of empowerment.”

The programme will be available to start-ups, mid-size companies and registered co-operatives.

Several development finance institutions have already come on-board: the Independent Development Corporation (IDC) made available R23 billion over the next five years, the Land Bank R3bn, the Development Bank of South Africa R2bn and the Small Business Development Agency R100 million.

“If you want to become an empowered businessperson, the future is in manufacturing. You must commit yourself. You must be willing to take the risk. You must be in it for the long-term,” was Davies’s advice.

The black industrialists programme was a “significant driver” of industrialisation in South Africa, said the minister.

Davies emphasised that stepping up South Africa’s industrialisation was key given the negative outlook on mining and mineral resources worldwide.

Despite economic headwinds, there have been several industrial manufacturing investments, particularly in the automotive sector.

Tomorrow, Davies is headed to Nairobi for World Trade Organisation discussions, after another round of talks on finalising African Growth and Opportunity Act (Agoa) related issues. This after the US issued a 60-day notice of its intention to withdraw privileges because of disputes over poultry, beef and pork imports related to health standards. Agoa allows several South African exports, including light vehicles, duty-free access to US markets.

Davies confirmed the two countries have finalised quotas and veterinarians have an agreement on avian flu matters, but not yet salmonella.

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