Public Enterprises Minister Malusi Gigaba has told a meeting of the Black Management Forum (BMF) that he would continue to pursue a review of the Preferential Procurement Policy Framework Act in a bid to hasten empowerment.

“Of course, we are persisting in our effort [and] working [with] other government departments to seek a review [of] the Act to achieve faster and more radical empowerment.

“Ultimately, the question of radical, faster and more fundamental economic transformation will be the most important question the near-, medium- and long-term future must determine if we are to fulfill the injunctions of our democratic and progressive Constitution,” he said at the BMF business breakfast on Thursday.

Gigaba added that the “many” financial institutions under the control of government must “shift in how they finance black business” and encourage people to take risks to industrialise.

To support infrastructure roll-out, government would put in place financing levers intended to support black industrialists and the transfer of wealth into black hands.

“We recognise that the financing of emerging black industrialists is important for the economy and that broad-based black economic empowerment (BBBEE) must have a credible financing component to proceed. We will thus use financing consortia or ‘special purpose vehicles’, deliberately and effectively, to compensate for the shortage of finance in black communities,” Gigaba said.

Government would also leverage both private sector funds and State funds to support economic empowerment and to open up space for emerging black industrialists.

He cautioned, however, that black business would not be rewarded without hard work and “hands-on application”, which would enable these companies to become true entrepreneurs rather than “middle men”.

“As government, we are committed to supporting the building of a cadre of black
industrialists that are ready, able and willing to get their hands in the mud and create long-term, sustainable, job-creating and skill-developing inclusive wealth,” Gigaba noted.

STRATEGIC INFRASTRUCTURE PROJECT 2

Among the many government infrastructure programmes through which black empowerment would be implemented, Gigaba cited the Strategic Infrastructure Project 2 (Sip 2), otherwise known as the Durban-Free State-Gauteng Logistics and Industrial Corridor.

This R205-billion project aimed to build cargo nodes in Harrismith, Cato Ridge, Tambo Springs and the Dube Trade Port and would further upgrade existing cargo nodes in City Deep, Pyramid, West Rand and Sentrarand.

Sip 2 was intended to improve access to Durban’s export and import facilities, integrate the Free State Industrial Strategy activities into the corridor, integrate currently disconnected industrial and logistics activities, and incorporate marginalised rural production centres surrounding the corridor that were currently isolated from the main logistics system.

It would also expand rail capacity and rolling stock to meet forecast demand from 67-million tons a year.

Gigaba held that, by the third quarter of 2013, 11 118 jobs had been created by Sip 2, while 98.2% localisation in spend had been achieved.

“This presents an opportunity for black business to explore both downstream and upstream initiatives, high value-added goods and the growth sector in the infrastructure value chain, like cement plants, stone mining, modern brick building and others.

“Government will work closely with our black business partners to ensure that this project is a success and results in BBBEE, hence inclusive growth,” he commented.