Unlocking Growth: A Guide to the dtic's Black Industrialists Scheme (BIS) Grant

dagmar
Aug 22
3 min read

South Africa's economic landscape is transforming, and at the heart of this change is the empowerment of black industrialists. The Department of Trade, Industry and Competition (the DTIC) offers a powerful catalyst for this growth: the Black Industrialists Scheme (BIS) Grant.

If you're a visionary entrepreneur looking to scale your manufacturing or services operation significantly, this grant could be the game-changer you need. But navigating the application process can be complex. This guide breaks down what the BIS is, its benefits, and the crucial documents you'll need to prepare.

What is the Black Industrialists Scheme (BIS)?

The BIS is a cost-sharing grant programme designed to accelerate the participation of black industrialists in the mainstream economy. It focuses on promoting black-owned businesses in the manufacturing and services sectors that are involved in value-adding activities.

The primary goal is to foster industrialisation, create sustainable jobs, and achieve more inclusive economic growth by providing financial support to qualifying black-owned businesses for their expansion projects.

Key Benefits of the BIS Grant

Substantial Financial Support: The grant provides funding for a wide range of project-related costs, significantly reducing the financial burden on the business owner. Grants can go up to R50 million per qualifying enterprise.
Driving Transformation: It’s a direct investment in transforming South Africa’s industrial ownership patterns.
Job Creation: By supporting business expansion, the scheme directly contributes to creating and sustaining employment opportunities.
Business Growth and Sustainability: The funding can be the critical enabler that allows a business to upgrade technology, increase production capacity, and enter new markets.

What Can the BIS Grant Be Used For?

The grant is designed to support capital investment and expansion. Eligible costs typically include:

Capital Equipment: Purchasing new machinery and equipment for production.
Commercial Vehicles: Acquiring vehicles directly used for the business's operational logistics.
Land and Buildings: Acquiring or upgrading industrial property and facilities.
Project-Related Feasibility Studies: Funding studies necessary to validate the project.
Business Development Services: Covering costs for expertise needed to implement the project successfully.

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The Key to a Successful Application: Your Documentation

A complete and well-prepared application package is non-negotiable. The DTIC requires thorough documentation to assess your business's viability, the project's merit, and your eligibility.

Here is a checklist of the typical documents required for a BIS application:

1. Company Registration and Compliance:

Certified copies of company registration documents (CIPC CK1/CM1, COR14.3).
Certified copy of the Memorandum of Incorporation (MOI).
Valid Tax Clearance Certificate/PIN from SARS.
B-BBEE Status Level Verification Certificate or a Sworn Affidavit.
Certified ID copies of all shareholders and directors.

2. Financial Documents (Critical for Assessment):

For existing businesses: Audited or reviewed annual financial statements for the past 2-3 years.
For all applicants: Projected financial statements (Income Statement, Balance Sheet, Cash Flow) for the next 3-5 years, linked directly to the proposed project.
The latest 6-12 months of business bank statements.
Management accounts are not older than three months.
Audited financial statements of major shareholders (if applicable).

3. The Project Proposal & Business Plan: This is the heart of your application. It must be detailed and compelling, including:

A comprehensive executive summary.
A detailed description of the project and its value proposition.
A market analysis demonstrating demand and competitive advantage.
A clear implementation plan with timelines.
A detailed breakdown of the total project cost and the specific funding required from the DTIC.
The projected socio-economic impact, especially job creation.

4. Supporting Documents for the Project:

Quotes or pro-forma invoices for the assets to be purchased.
Proof of ownership or lease agreement for the business premises.
CVs of key management personnel and owners, highlighting relevant industry experience.
Any relevant sector-specific licenses or permits.

Navigating the Process: Why You Might Need a Guide

The BIS application is highly competitive. The complexity of the documentation and the stringent requirements can be overwhelming for even the most astute business owners. A single missing document or an unconvincing business plan can lead to delays or rejection.

This is where expert guidance becomes invaluable. A consultant who understands the DTIC's requirements can help you:

Ensure your application is 100% complete and compliant.
Develop a robust, convincing business plan and financial projections.
Navigate the specific nuances of the BIS programme.
Avoid common pitfalls that lead to application rejection.

Is your business ready to step into its industrial potential? The BIS grant offers an unparalleled opportunity for growth and impact. At [Your Company Name], we specialise in demystifying the process. Our team of experts provides end-to-end support, from assessing your eligibility to preparing the perfect application package.

Contact us today for a confidential consultation, and let’s build a more industrialised and inclusive South Africa, together.