The Black Industrialists Policy (BIP)

This DTI program aims to create opportunities for new and existing black industrialist champions. Champions are defined as persons who are able to lead as business- or technical experts, are committed to the business and will take financial risk. Applicant companies must therefore be more than 50% owned and/or controlled by black shareholders whose role in the business extends well beyond that of a foot soldier.


A BIS grant of between 30% and 50% is offered on investment in new equipment, vehicles and buildings, and the minimum required investment in such new items is R30 million. It does not end there: the program aims to ensure that the projectís total financial needs are satisfied. For this purpose, loan and equity finance will be offered through one of the governmentís Development Finance Institutions, such as the IDC, NEF, etc. However, the program was only rolled out during January 2016 and it appears that this part of the process is not yet functioning, so applicants for the grant have to provide proof that they have got the remaining project funding sorted out.


The BIP program applies to manufacturing and related activities (which normally includes the processing and packaging of fresh fruit and vegetables).


This program could be a useful tool for black industrialists wanting to buy out white shareholders and make the place their own, especially if an expansion is on the cards, as the expansion will then be subsidised by as much as 50%. Note that the purchase price will not be subsidised.


As far as we can see, the program will also assist industrial holding companies under black control, who want to buy a majority stake in a white held company.


We would like to meet with you, evaluate your proposition and discuss the options available to you.

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