R100bn injected into industrial funding
THE INDUSTRIAL Development Corporation (IDC) has injected R100 billion in industrial funding with a quarter of the portion going to black industrialists.
This was the announcement made by Economic Development Minister Ebrahim Patel in Parliament yesterday during his budget vote, where he outlined key areas to increase participation of black people in the economy. Patel said the focus on increasing more players in the economy was critical for the economy, transformation and development.
He said the country must nurture black industrialists.
Out of R100bn to be set aside over the next five years, R23bn would be for black industrialists in the productive sectors.
This was intended to unlock the economy and give more opportunities to black new players in the industry.
The R23bn was not for the same old faces in BEE deals, but new entrants and those players who want to expand and grow their businesses.
He said this funding will come with certain key conditions that would have to be met by the black industrialists.
Patel said they will invite private investors and identify opportunities in the economy where black players would participate. “Our focus is on new entrants and entrepreneurs. The emphasis here is on growth, development and job creation,” he said. He emphasised that this was not about equity deals, but new players in the productive sector.
Black people were underrepresented in the industry, said Patel.
“To boost overall investment further, the IDC has earmarked R100bn in the next five years for investment in the key job drivers and we expect a R200bn of co-funding by IDC partners, bringing potentially R300bn to the economy,” Patel added. He also announced a panel of steel experts to advise on a more competitive steel price for downstream users.
He also said that the Competition Commission had completed its probe into collusion by the biggest steel maker and he would be tackling steel pricing for downstream users.