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
