DTI backing for chemical manufacturer

THE first black manufacturing company to obtain Department of Trade and Industry backing has been launched in the chemical sector.

The department said the programme was part of its efforts to boost black industrialists.

Kevali Chemicals has opened in Harrismith, Free State, in a joint project with the Industrial Development Corporation (IDC) which provided R30 million in funding. It will manufacture a range of water treatment chemicals, cleaning and disinfecting solutions, and adhesives.

The IDC’S divisional executive for the chemicals and textiles industries, Shakeel Meer, said Kevali was one of the black-owned companies that had benefited from the DTI’S black industrialist incentive programme.

“The launch of Kevali has also created 57 direct jobs and 12 indirect jobs in the region, which is crucial to fighting unemployment in the country.

“Kevali came to us in 2016 and we were happy with their business proposal as they had the industry experience in the sector.”

Meer added that Kevali would export its products to countries such as Swaziland, Rwanda, the Democratic Republic of Congo and Tanzania.

The black industrialist programme is aimed at placing more black people at the forefront of South Africa’s industrialisation.

As part of the transaction, Kivali enabled employees to get a stake in the business through equity in a workers’ trust.

Meer said Kevali’s products were a key input to the food and beverages industry, with businesses like this helping to reduce the ultimate costs to the consumer.

Kevali was founded by five professionals who realised that they had the right composition of competencies, abilities and experience.

Funeka Khumalo, an executive director at Kevali, said they felt that there were no significant black companies participating in the chemicals field.

“We saw a gap in the market and put together solutions that would address these gaps. That was how Kevali Chemicals came into being,” she said.

Khumalo added they saw huge potential within water treatment as a black empowered company.

“We will focus on our water treatment division over the next two years and look at possibly expanding the plant to manufacture water treatment chemicals.”

In the last financial year the

IDC said it had approved more than R2 billion in funding in the chemicals value chain, half of that for black industrialists.

Meer said it was crucial for

South Africa to develop its own key industrial productive capabilities.

“We continue to invest in regional economies and ensure that black industrialists across all provinces are unearthed and assisted to grow their businesses and local manufacturing.”