As was the case with previous pandemics and wars, the economic impact, both positive and negative, of COVID-19 will be with us for generations.
The economic recovery plan is expected to spur deliberate large scale social and industrial infrastructure investment in South Africa through local and foreign direct investment and through public private partnership of financial and technical resources.
In unpacking the prospects of industrialisation at a time of economic uncertainty, we look to the infrastructure value chain and what local manufacturing opportunities lie within it.
The need for inputs to the sector range from cement to roof tiles, water pipes, railway infrastructure components and many others.
This presents a golden medium to long term opportunity for business owners and entrepreneurs with the skill set, networks, access to markets and track record to participate as black industrialists and establish or expand large scale manufacturing of these inputs.
The Black Industrialist Scheme is an incentive which provides up to R50m in grant funding for the establishment or expansion of commercially viable, majority black owned businesses.
These incentives contribute 30% to 50% of the total capital equipment investment a project may require with the balance of the capital and working the United Nations General Assembly proclaimed 20 November as Africa Industrialisation Day (resolution 44/237 of 22 December 1989).
If you are interested in engaging around incentives out of the Department of Trade, Industry and Competition (DTIC), please do not hesitate to contact us.