The Department of Trade and Industry (DTI) will move decisively to develop bolder instruments to support black industrialists and youth.

Delivering the department’s Budget Vote on Tuesday, Trade and Industry Deputy Minister Mzwandile Masina said they will develop bolder and sharper instruments to support industrialists and young entrepreneurs.

“One of the yardsticks that can be used to measure the impact of the work of the DTI in transforming the economy, as well as broadening participation, is the extent to which black people are meaningfully participating in the economy,” he said.

Work has been done to include black participation in the economy, such as the Broad-Based Black Economic Empowerment (BBBEE), which was enacted to advance economic transformation and participation of black people in the economy.

The deputy minister said the BEE Act and its codes were amended last year to close a number of loopholes in terms of dealing with firms that engage in ‘fronting’ and to better align BBBEE imperatives with the need to promote the industrialisation of SA’s economy.  

“Twenty years of freedom has also allowed us to analyse the extent to which real BEE has been achieved. Our sense is that although progress on the whole has been significant, we need to be more ambitious.

“The entrepreneurial, executive and management talents of black people have not yet been fully unlocked and indeed in some sectors, established firms continue to create barriers to entry for new, black-owned enterprises,” he said.

There is a need to intensify black participation in productive sectors, especially in sectors prioritised in the Industrial Policy Action Plan (IPAP), such as plastics and chemicals.

To facilitate a more meaningful participation of black people in the mainstream economy, the department will look at various ways of developing and sustaining black industrialists.

“I will lead a team that will work closely with the Presidential BBBEE Advisory Council to develop specific actions in this regard,” said Deputy Minister Masina.

Supporting the youth
One such action will be the creation of a targeted incentive to support black entrepreneurs entering the industrial sector, including film, and to focus more on the talent support.

Given the challenge of unemployment in the country, the DTI has called on the private sector to make use of state instruments to fully participate in the “One Company One Job” initiative. The campaign will be driven by the deputy minister’s office working with business, labour and civil society.   

The youth forms a large part of the population and it is the segment most affected by unemployment.

The deputy minister said the process of developing financing mechanisms to ensure access to start-up finance by young entrepreneurs is at an advanced stage.

These finance options will be targeted at improving access to finance by young entrepreneurs through the provision of collaterals, grants and improving competitiveness and sustainability of businesses.

Additionally, a range of financial reforms are on the cards to ensure inclusive growth, access and participation.