S. African gov't seeks bigger role of black industrialists in economy

South Africa will not be able to industrialize unless it simultaneously includes black Industrialists in the economy on a sustainable basis, a cabinet minister said on Monday.

The government encourages the inclusion of the black industrialists in the manufacturing sector which is the future of the economy, Minister of Trade and Industry Rob Davies said at a press briefing in Cape Town on the Black Industrialists Policy that was approved by the cabinet recently.

This policy complements Broad-Based Black Economic Empowerment by focusing support directly at black manufacturers.

While the government encourages the inclusion of the black industrialists in the manufacturing sector, they need to also be committed, willing to take risks and be willing to look for long-term returns not short-term rents, Davies said.

The Black Industrialists Policy was an enabler for black industrialists to move to another level and not everyone who applies for the Black Industrialists Programme will be accepted, he said.

According to Davies, a number of the Developmental Finance Institutions have already set aside funding commitments in collaboration with the Department of Trade and Industry to support this program.

The Black Industrialists Policy, Davies said, is expected to leverage the state's capacity to unlock the industrial potential that exists within black-owned and managed businesses that operate within the South African economy.

The intention was to contribute towards shifting the demographic composition of the South Africa's industrial sector and engage the underutilized source of jobs, revenue, taxes and innovation, which are black industrialists, he said.

"This policy proposes focused efforts to facilitate inclusion and participation of black industrialists in manufacturing activities, with an understanding that more equal societies tend to grow faster than those that are unequal," Davies said.

Financial support will be provided through concessional loans, investment grants and concessional export insurance funding and export market exploration support, the minister said. Enditem