Economic Development Minister Ebrahim Patel reported on Tuesday that the Industrial Development Corporation (IDC) would set aside R23-billion to support black industrialists over the coming five years.

The resources formed part of a larger R100-billion that the State-owned development finance institution would seek to disperse in support of industrial development by 2020. In the five years to 2015, the IDC had dispersed R61-billion, Patel reported.

Delivering his Budget Vote address, the Minister said the IDC would also provide a 150 basis points discount on the pricing of its loans to those black industrialists who owned and controlled their operations.

“I am pleased therefore to announce that the R100-billion committed for industrial development over the next five years by the IDC will include R23-billion set aside to support and facilitate the growth of black industrialists in the productive sectors and R4.5-billion each for women and youth empowered businesses,” Patel said.

The announcement followed the release by the Department of Trade and Industry (DTI) of the seventh Industrial Policy Action Plan (Ipap), which indicated that a specific support framework for black industrialists was under development.

The 2015 document indicated that, over the coming year, a Black Industrialists Development Programme, backed by R1-billion in incentive funding from the DTI, would be designed, developed and structured.

The aim of the scheme, which government planned to implement in collaboration with several development finance institutions, would be improved inclusion and participation of black industrialists in manufacturing activities.

The programme would include financial and nonfinancial support with a specific focus on access to finance, access to markets, skills development, meeting quality standards and productivity improvements.

The Black Industrialists Development Programme was expected to be operationalised during the current financial year, with the initial aim being to support 100 black industrialists.