POLICY INTRODUCTION AND BACKGROUND

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2 POLICY INTRODUCTION AND BACKGROUND Introduction SA Socio-economic challenges Limited participation by majority in productive sectors Government s broad industrialisation initiative ( IPAP) Expansion of industrial base Injection of new entrepreneurial dynamism Supporting and complementing - NDP, NIPF (IPAP), BBBEE, PPPFA, NGP, & Others relevant government policies.

3 POLICY INTRODUCTION AND BACKGROUND Policy Objectives Leverage State s capacity to unlock the industrial potential from black-owned and managed businesses; Deliberate and targeted financial and non-financial long-term support for Black Industrialists; Create multiple and diverse pathways and instruments for Black Industrialists to enter strategic and targeted industrial sectors and value chains

4 BLACK INDUSTRIALISTS DEFINITION Strategic and operational leadership; A Black Industrialist is a juristic person that includes co operatives, incorporated in terms of the Companies Act (2008) that are owned by black South Africans, as defined by the B-BBEE Act, who create and own value-adding industrial capacity and who provide long-term strategic and operational leadership to a business. A Black Industrialist can also be a natural person. High level of ownership (>50%) and/or exercises control over the business; Identifies opportunities and develops business(entrepreneurial); Takes personal risk; Operate in manufacturing sector (IPAP); Long term commitment; Adequate expertise experience in the sector.

5 TARGETED SECTORS Such entities should be operating in the manufacturing sectors in line with the IPAP industrialisation path as follows:

6 TARGETED SECTORS continued Such entities should be operating in the manufacturing sectors in line with the IPAP industrialisation path as follows:

7 ECONOMIC DEVELOPMENTAL IMPACT DEVELOPMENTAL OBJECTIVES TARGETING:

8 POLICY SUPPORT MEASURES Support will be provided to BIs projects in relation to: ACCESS TO CAPITAL ACCESS TO MARKETS AND CONTRACTS OTHER NON-FINANCIAL SUPPORT

9 4. STATUS OF POLICY IMPLEMENTATION Access to Capital POLICY IMPLEMENTATION Administration Of Incentives Gap Funding Secure relations With Banks Venture Capitalist And DFI s Access to Markets Enterprise Development Budgets Removal of Access Barrie's to access to capital Removal of Pre-investment barriers Removal of administrative barriers Access to Domestic Markets State Owned Companies National Government Private Sector Export Market Rest of Africa Rest of the World Access to Non-Financial Support Facilitate Market Access for BI s With the different Association Target strategic Markets in the Continent and the RoW Host Meet the Buyers conferences And Exhibitions Technical Support Establishment of BI focal Points Advocacy Skills Development and Productivity support Assist National and Provincial government to develop incentives and framework to implement BI Assist Agencies to ensure that services provided are at developmental rates 9

10 POLICY SUPPORT MEASURES ACCESS TO FUNDING Black Industrialist Financing Forum: IDC, NEF, DBSA, PIC, LAND BANK, SEFA, ECIC DTI Incentive SCHEME ( Cost-sharing grant of between 30-50% up to R50million) Collaboration with private financial institutions ACCESS TO MARKETS Government Procurement opportunities Collaboration with State Owned Procurement Forum, Agreements with Multi nationals across the sectors on Enterprise Development Program Collaboration with Private Sector to facilitate access to markets OTHER NON FINANCIAL SUPPORT Training and capacity building Portal for networking ( information sharing) and match-making Research and support for innovation Quality standard and productivity support Other support initiatives within the economic cluster of government Compliance and competitiveness

11 THE JOURNEY THUS FAR. The Black Industrialist Policy Application forms and Guidelines ( Financial and Non-Financial) MOU (KZN, FREE STATE, IBM, ECDC, STANDARD BANK & FNB) Black Industrialist Funding Forum (BIFF) Approvals ( 56 Financial Support) 33 non-financial support Jobs created: more than Sectors supported: Electro-technical; Agro-processing; Metal Fabrication (Rolling stock); Chemicals, Pharmaceuticals, Plastics; Pulp, Paper and furniture; Aerospace, rail and auto-motive components Market Access Forum (SOCs, National Government Departments and Private Sector)

12 OPPORTUNITIES FOR AVIATION INDUSTRY Black Industrialist Policy identified Aerospace, Rail and Automotive components as one of the targeted sectors Discussions on strategic partnership between the dti and ATNS ongoing the dti is in search of strategic projects in Aviation Industry Collaborations with Private Sector e.g. Aerosud & SCS Aerospace Group Engagements with Universities are underway

13 THE PROJECTED FUTURE. The Policy and programs harmonization ( BBBEE, PPPFA, Gazelle, Industrials Parks and SEZ etc) Roadshows; Provincial structures; 2017/18 Projected BI Target: 100 Sector analysis; and Monitoring and Evaluation

14 ACCESS TO THE DTI BLACK INDUSTRIALISTS SUPPORT Contact details Enquiries: Tel no: Applications Submissions: Tel: no: