THE Department of Trade and Industry will provide grants and cheap loans to the tune of R1bn as part of the government’s plan to create large and competitive black industrialists.
The funding was expected to attract an estimated R10bn to R20bn from other funders, such as the Industrial Development Corporation; the National Empowerment Fund; the Public Investment Corporation and banks, department director-general Lionel October said on Wednesday.
"There are discussions to offer loans with interest of between 1% and 3%," Mr October said on the sidelines of the Black Industrialists Indaba, a forum to discuss support for the sector.
The department would look at ways to direct a portion of the R6bn in annual incentives that it gives to companies to black manufacturers, Mr October said. He said that when SA’s new broad-based black economic empowerment codes come into effect in May, only companies with a minimum level of four would qualify for the incentives.
This is in all likelihood another empty promise from our Lionel and the iDioTIc. On a practical level Eskom can barely provide enough power to power the pump on the Nkandla firepool - how is it going to support ANY emerging industrial activity.