Trade and Industry Minister Rob Davies says he is 'proudly aware' of black empowerment gains. Picture: TREVOR SAMSON
Trade and Industry Minister Rob Davies. Picture: TREVOR SAMSON
THE definition of a black industrialist will be strict and tight, according to Trade and Industry Minister Rob Davies.
But Mr Davies, who spoke to Business Day on Tuesday, did not specify the basis of the assertion or say whether he was referring to fronting, which has dogged black economic empowerment (BEE).
The Broad-based Black Economic Empowerment Amendment Act, which came into effect in October last year, made fronting a criminal offence.
The state will be strict in determining who qualifies for the multibillion-rand scheme to bolster the creation of large and competitive black industrialists.
"This (policy) is not a way someone can dress themselves up differently and call themselves an industrialist," Mr Davies said.
Last month he said no black industrialists had been chosen for the programme as a policy framework was still to be approved by the Cabinet. Last year the department established the black industrialists’ development programme, which aims to create more than 100 industrialists within three years in an effort to revive the sector.
On Monday Economic Development Minister Ebrahim Patel said the Industrial Development Corporation would spend R23bn to fund more than 100 black industrialists in the next three years.
The state will help black-owned manufacturing companies access finance and markets, develop skills, and improve quality and productivity, according to the scheme’s outline.
Mr Davies said the black industrialist policy still had to go through final Cabinet processes before more details on qualifying criteria could be made public.
He said the manufacturing sector remained the most "untransformed" in the economy.
"We are now applying the codes of good practice as required under the amended BEE Act, which means we will be making requirements on people that draw on our incentives that they develop a BEE programme," Mr Davies said.
A number of companies had benefited from the department’s support measures, including clothing and textile companies through the competitiveness improvement programme, he said.
Mr Davies visited the factory of Prestige Clothing, the manufacturing arm of The Foschini Group, which he said had made progress after improving its production through the programme.
Prestige Clothing CEO Graham Choice said of the 6-million garments sold to TFG’s retailers last year, 41% went from concept to store in under 56 days.