KZN on Black Industrialists Programme
Black Industrialists project seeks to advance radical economic transformation in the Province. The Department of Trade and Industry has already announced a R1 billion incentive scheme directed at creating more than 100 large and competitive black industrialists (BI) in key sectors identified in the Industrial Action Plan, particularly in those sectors with potential to significantly drive economic growth. The Black Industrialists fund is expected to attract between R10 billion and R20 billion from other developmental sources like the Industrial Development Corporation, Development Bank of Southern Africa, National Empowerment Fund and the Public Investment Corporation. The National Government has issued the guidelines which states that successful project will receives between R30 to R50 Millions of grant funding. The Black Industrialists Programme has already been launched in the Province, and the implementation steering committee which includes the dti has been established. This provides the KZN Province with huge opportunity to submit more strategic projects to be considered for funding. However, there is great prospect to lose out on this opportunity if this request is not granted. Accordingly, we resubmit for reconsideration of this project, more especially as it seeks to empower the transformation target group, blacks in particular, which is the strategic imperative of the Department and the Provincial Government. The Department in 2017/18 financial cycle approved R15 Million in support of this project.
The Province Benefits for supporting Black Industrialists Programme
- There is no grant funding provided by both Government and the private sector in the Province. This serve as a barrier for economic transformation. This project will help opening up access to finance and market opportunities for Black Industrialists in the Province.
- The rate of unemployment, poverty and inequalities amongst the black population is very high. This project is an attempt by the State to deal with problem of racial inequalities. While at the same time providing employment opportunities which will ultimately lead to poverty alleviation.
- The B-BBEE policy framework regards women, youth and people with disabilities as a priority for economic transformation. The Province will benefit in terms of economic empowerment of the priority population group.
- The Cabinet Resolution 437 of the 13th of December 2011, PGDS Work Group 4, and the Procurement Indaba resolutions prescribe for the implementation of strategic interventions for economic empowerment of target group. This project will help the Province to achieve its targets on economic transformation.