Hundred black industrialists to be created - dti | Fin24
 
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Hundred black industrialists to be created - dti

Aug 15 2014 14:49
Fin24

Johannesburg - The department of trade and industry (dti) will create hundred black industrialists in the next three years, who will participate in the productive sectors of the economy as part of government’s radical economic transformation programme.

This was announced by the deputy minister of trade and industry Mzwandile Masina at a black industrialists' stakeholder engagement session that he hosted at the Industrial Development Corporation (IDC) on Thursday.  

“The South African government is promising radical economic transformation to get more black businesses involved in the transformation of our society and to get more of our people, especially our youth, working," said Masina.

Broad-based black economic empowerment (B-BBEE) will be the vehicle used to drive that transformation. This will ensure that black people participate meaningfully and sustainably in the mainstream of our economy."

He added that one of the yardsticks that could be used to measure the impact of the work of the dti in transforming the economy as well as broadening participation, was the extent to which black people are participating meaningfully in the economy.

Masina announced numerous initiatives that government will undertake in order to achieve its objective of creating and supporting black industrialists.

These include effecting reforms to the Preferential Procurement Policy Framework Act (PPPFA), customising incentive schemes offered by government and its agencies, launching a new financial support scheme suitable for black industrialists and the establishment of an advisory panel on black industrialists.

“Over the next five years, a host of working opportunities will become available to South Africans. For example, a new generation of black industrialists will be driving the re-industrialisation of our economy," said Masina.

Local procurement

Local procurement and increase domestic production will be at the heart of efforts to transform our economy and will be buoyed by a government undertaking to buy 75% of goods and services from South African producers.”

He added that the local procurement aspect of the B-BBEE policy and other government procurement practices by state owned enterprises (SOEs), in particular, will offer black industrialists better access to markets and strengthen their sustainability.

"SOEs must accelerate their procurement programme to meet the 75% target over the next five years," he said.

“In its current form, the PPPFA does not assist our transformation ideals. There should be a process of changing this piece of legislation to actualise the agenda of black industrialists."

The dti will review the current incentives, which seem to have been stringent and making it difficult for black industrialists to access the funds.

"We will soon launch an incentive scheme that will specifically focus on black industrialists. We will centralise BEE accreditation, because, as things stand at the moment, it is open for abuse," he said.

"Therefore, we will look at ways where this function is housed in the dti. If we are to create sustainable black industrialists we must change how we do things.”

The members of the advisory panel on black industrialists are: Sandile Zungu, Vuyo Jack, Khumbudzo Ntshavheni, Thandi Hlongwa, Xhanti Payi, Mapuleng Moropa, Moipone Moletsi, Craig Cornish, Joe Mojapelo and Ntokozo Ngcwabe.

- Fin24

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dti  |  economy  |  industrial  |  bee
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