B-BBEE – Funding of black industrialists

 

RACISM AND DISCRIMINATION – Funding of ONLY black industrialists  –  According to the Rob Davies, the Minister of Trade and Industry, in his budget vote speech on the 22 of March 2017 the BIP has gathered momentum with 46 projects having been approved and more than R2bn deployed through government agencies.   The programme was launched in March 2016 with the aim of supporting 100 black industrialists until March 2019. In addition to the financial support of the government agencies, approved black industrialists have received R122m in grants from the department.   Money came from tax income as well.

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“Our support has allowed these black industrialists to undertake investment projects of R3.7bn and is projected to create more than 8,000 direct jobs and close to 12,000 indirect jobs. As we have indicated earlier we have now decided to accelerate the implementation of the programme to support 100 black industrialists.

Instead of reaching this milestone by March 2019 we now intend to reach this target
by the end of the current financial year, that is, by March 2018,” Davies told MPs
(https://www.businesslive.co.za/bd/business-and-economy/2017-05-23-rob-daviessays-almost-50-projects-approved-in-black-industrialist-programme/).

***

Definition of Black Industrialists

In conventional terms, the concept of black industrialists refers to black people directly involved in the origination, creation, significant ownership, management and operation of industrial enterprises that derive value from the manufacturing of goods and services at a large scale; acting to unlock the productive potential of our country’s capital assets for massive employment locally. The following are important elements of being an “industrialist”:

  • Significant influence in an enterprise or industry;
  • Control of an enterprise through shareholding;
  • Board and executive management control; and
  • Production of products (goods and/or services) with significant wide use.

For the purposes of this programme, the term Black Industrialist will in a general sense refer to black South Africans who own and, through significant shareholding, control an enterprise whose products are significantly used and have significant impact on decent employment and create broad-based economic opportunities.

The term Black People is a generic term that includes people of African, Coloured and Asiatic origin that are citizens of the Republic of South Africa by birth or naturalisation before 27 April 1994 or would have been entitled to acquire citizenship by naturalisation prior to 27 April 1994.

The term Economic Transformation is defined by the Strategy for Broad-Based Black Economic Empowerment (the dti; 2003) as transition from an economy that confined wealth creation to a racial minority into one that benefits all citizens; and is characterised by ownership, management and control of factors of production by previously marginalised communities.

http://www.dti.gov.za/economic_empowerment/Black_Industrialist.jsp

***

The IDC and the NEF are state owned development finance institutions (DFIs) which
are mandated to fund the BIP. The asset manager of the Government Employees
Pension Fund (GEPF) was also designated as funders of the BIP.

Unlike the two DFIs, they invest pensioners’ money and any losses could compromise the retirement packages of state employees consequently burdening the taxpayers. The PIC and the NEF were reluctant to engage on the pros and cons as well as their progress on the BIP.

In 2015 the IDC planned to invest about R23-billion towards black industrialists in
support of the BPI.

The IDC’s funding gave fresh impetus to the expansion of the benefits of transformation in the country. The IDC has supported black economic empowerment for the past 21 years providing a minimum of R28-billion to blackowned businesses, and more than R53-billion for broad-based black economic empowerment (B-BBEE) generally (IDC, 2015). Between 2015 when the BIP was introduced and March 2017, the IDC has concluded about 203 (two hundred and three) deals of R11,4 bn to about 185 (one hundred and eighty five) companies which created and saved about 11 725 (Eleven thousand seven hundred and twenty five) jobs.

According to the IDC chief executive, “supporting the creation of black industrialists has been a strategic imperative for the organisation and this has not changed”

(https://www.idc.co.za/images/2017/integrated_report/FINAL%20IR%20Presentation
.pdf)

***

B-BBEE

https://2017.essa.org.za/fullpaper/essa_3340.pdf

***

Parliament of the Republic of South Africa. (2004, January 9). Broad-Based Black
Economic Empowerment Act No. 53 of 2003. Government Gazette , 463 (25899) .
Cape Town , Western Cape, South Africa: Government of the Republic of South
Africa.
Parliament of the Republic of South Africa. (2014). Broad-Based Black Economic
Empowerment Ammendment Act No. 46 of 2013. Government Gazette , 583 (37271)
. Cape Town, Western Cape, South Africa: Government of the Republic of South
Africa.
Parliament of the Republic of South Africa. (2007, February 9). Broad-Based Black
Economic Empowerment Codes of Good Practice. Government Gazette , 500 (29617)
. Pretoria, Gauteng, South Africa: Government of the Republic of South Africa.
Parliament of the Republic of South Africa. (1996). The Constitution of the Republic
of South Africa (Vol. No 108). Cape Town: Government Printers.
Parliament of the Republic of South Africa. (1998, October 19). The Employment
Equity Act No. 55. Government Gazette , 400 (19370) . Cape Town, Western Cape,
South Africa: Government of the Republic of South Africa

 

 

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2 gedagtes oor “B-BBEE – Funding of black industrialists”

  1. Is daar enige terugvoer oor die sukses al dan nie van hierdie RACISM AND DISCRIMINATION – Funding of ONLY black industrialists?
    Hoeveel geld is spandeer en wat is die wins/verlies?
    Waar is al die besighede?
    Hoeveel werksgeleenthede is geskep?

    Like

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