Question NW1895 to the Minister of Trade and Industry
27 September 2016 - NW1895
Macpherson, Mr DW to ask the Minister of Trade and Industry
With reference to his reply to question 349 on 25 February 2016, (a) how many industrialists have been approved to date, (b) what are their names, (c) in which companies have the specified industrialists taken equity, (d) what is the total amount of money that has been dispersed to each of the specified industrialists for the specified equity, (e) what are the terms and conditions attached to the repayments of the specified amounts and (f) how many jobs have been (i) created and/or (ii) retained by each of the specified industrialists to date?
Reply:
(a) A total number of 22 projects have been approved under the Black Industrialist programme between the dti and the participating Development Finance Institutions (DFIs). In terms of the dti’s grant funding for Black Industrialists (BIs), 9 Black Industrialists projects have been supported for their investments in assets.
(b) The 9 incentivised Black industrialists projects include the following:
Baynes Transformers, K9 Pet Foods, Naledi Rail Engineering, Nciba Grain Group, Carbon Klean, Kenako Medical, Polybox Enterprise, Thaleka Manufacturing Services, and Maneli Pets
(c) The above mentioned companies are Black owned and managed entities. They have not taken equity from any existing companies. Only two Black Industrialists acquisitions were financed by a DFI to acquire 100% ownership of ABARDARE (Pty) Ltd and Machinery and Cutting Services Company.
(d) One DFI supported two Black Industrialists acquisitions to the value of R67 million and R12 million has been dispersed.
(e) The terms and conditions for equity transactions are concluded between the DFIs and their respective clients. In general, all funding for acquisitions are in a form of a preference share to the BI companies which then subscribe for ordinary shares in the target companies. The preference shares are payable based on the free cash flows of the target companies up to 10 years.
(f) The approved projects support 1000 jobs in the economy.