South Africa’s Black
Industrialist Programme
(BIP) could play a key role in
growing cross-border trade
and not just strengthening the
country’s overall exports.
According to Takalani
Tambani, chief director of
the programme with the
Department of Trade and
Industry, the initiative is fast
gaining traction as the benefits
are being realised.
“To date the dti has approved
R577 million in grants for 27
black industrialist projects –
with additional forms of loan
and equity financing being
provided to the grant recipients
by the Industrial Development
Corporation (IDC), the National
Empowerment Fund (NEF), the
Public Investment Corporation
(PIC) and the Land Bank,” he
said during an address at the
Africa Trade Summit Expo held
in Cape Town recently.
“We have with this programme
also explored very real export
opportunities in several crossborder
countries including
Namibia, Nigeria, Ghana
and Madagascar. The idea
is to expose
these black
industrialists
to these
markets and the
opportunities
that exist.”
He said a total
of 35 projects
were currently
under way across
several sectors
including metals,
agri-processing,
automotive and pharmaceuticals.
The BIP was launched by
the dti in 2016 to promote
the participation of black
industrialists as manufacturers
in key sectors of the South
African economy.
“The programme has been
met with very real optimism
and we have been inundated
with proposals,” said Tambani.
“We are confident that by next
year the number of projects will
be at least
three digits.”
He said
whilst the
dti was
committed
to increasing
South African
manufacturing
capacity and
growing
exports, this
programme
looked in
particular at overcoming the
very barriers that existed for
black South Africans to enter
the manufacturing sector.
He said by growing local
production capabilities South
Africa could trade more with its
neighbours, offering a variety of
products at competitive prices.
“Our ultimate vision with
this programme is to ensure
that black people own the key
production capabilities in South
Africa.”
But growing local
manufacturing capability in this
way was creating more value
locally, allowing the country to
stimulate its exports.
He said cross-border trade
was low-hanging fruit that
could be plucked immediately
by these new manufacturers
– and exposing them to these
markets was important to the
dti.
“In the long run it allows us
to grow South Africa’s global
competiveness, grow our
economy and adress some of the
very real socio economic issues
that continue to impact the
people of this country.”
We have with this
programme explored very
real export opportunities
in several cross-border
countries.
– Takalani Tambani
