As a black industrialist it means that one has to be involved in the running of the business on daily basis and according to the BEE act, a black industrialist cannot sell/resell shares to a white counterpart as that would be diluting those [black ownership] shares,” said Nomumelelo Maisela, Deputy Director: Black industrialist, Department of Trade and Industry (dti).
“That particular act regresses government and takes it back in terms of transformation,” said Maisela who was speaking at the Smart Procurement World conference in KwaZulu Natal in June.
The term “black industrialist” describes a black person, or a group of black people, as defined by the Broad-Based Black Economic Empowerment (B-BBEE) act that owns and adds value to a company and who is fully committed in the long term to providing strategic leadership and operational guidance to the business on daily basis, explained Maisela.
When government approved of black industrialisation policy in November of 2015, its main objective was to resuscitate the economy of South Africa, with a focus of a targeted intervention.
Government has assured black industrialists that partnerships with the private sector are in place and they will have access to markets both nationally and internationally, will be able to leverage off of international relations and make trade agreements with international countries. In this way government seeks to provide black industrialists with multiple pathways for networking.
The Black Industrialists Policy advices black business owners to venture into sectors related to industrialisation policy plan. As well as within the manufacturing industry and to enter into sectors that they have experience in or surround themselves with people who have technical expertise in the field they have chosen to do business in.
Targeted sectors that the dti speaks to include; such entities should be operating in the manufacturing sectors in line with the industrial policy action plan industrialisation path as follows:
• Blue ocean economy
• Oil and gas
• Clean technology and energy
• Agro processing
Industrial infrastructure refers to black industrialists who are keen to build up factories, provided that they have land and the government will come in and support with electricity, water, communication cables such as telephones, information communication technology. Lastly provide with capital, access to market and non-financial initiative.
The dti is further championing engagements with private sectors to:
• negotiate off-take agreements, enterprise and supplier development to empower BIs.
• facilitate localisation and transformation of SOC’s supplier base;
• create linkages with other institutions to enhance synergies.
• All these initiatives will be done with a view of BIs becomingglobally competitive
With regards to non-financial initiative, government has ensured black industrialists that there is a portal available to market them through foreign economic representatives for global market,plus the development financial institution has put aside funding to support this programme.