Trade and Industry Deputy Minister Mzwandile Masina
Trade and Industry Deputy Minister Mzwandile Masina is expected to expand on the finer points of the Department of Trade and Industry’s (DTI’s) radical Black Industrialists Development Programme during his Budget Vote speech in Parliament on Thursday afternoon, providing a clearer definition of the black economic-empowerment- (BEE-) driven policy that has, thus far, remained somewhat vague.
The controversial programme was first mooted by Masina last year, when he told a Black Business Council roundtable discussion that the department intended to make sweeping changes to BEE certification processes and preferential procurement policy in a bid to create a class of black industrialists and accelerate “radical” transformation in the South African economy.
The programme had since been flagged in the latest iteration of government’s Industrial Policy Action Plan, which indicated that it would be backed by R1-billion in incentive funding from the DTI and designed, developed and structured over the next year.
Masina acknowledged to journalists ahead of his address in Parliament that there remained uncertainty in the market around the exact nature of the black industrialist programme and that clarity would be provided during his budget speech.
“There has been confusion about what we are doing and why we are doing it…[today I will be] unveiling criteria and speak about the [budget that has been committed] for the next three years.
“The essence is that…we will be using this model to create sustainable industries…and achieve government’s target of 75% local procurement in the next five years. We are resolute…we’ve got the money…[and] we will do this,” he commented.
The DTI would continue to pursue agreements with State-owned companies, including Eskom, Transnet and the Passenger Rail Agency of South Africa, within which black employment and procurement targets would be defined under the programme.
This came days after the DTI signed a memorandum of understanding with national carrier South African Airways that would see half of the airline’s consumable supplies procured from black-owned companies by end 2018, targeting spend of R10-billion.
Masina was expected to deliver his address in Parliament at 16:40.