Economic Opportunities
(1) (a) How will black industrialisation be promoted in the Industrial Development Zone (IDZ) of the Saldanha Bay Municipality, (b) what is his Department’s plan to achieve this and (c) what is the total percentage of the funding that will be ring-fenced for it;
(2) whether he and his Department are lobbying specific companies to participate; if so, which companies in the province?
[1] [a] & [b]
The Western Cape Government supports dti’s black industrialist drive and is committed to ensuring that the province’s small businesses benefit from the economic boost in Saldanha Bay.
Project Khulisa has identified oil and gas as a key focus sector. Focusing specifically on upstream and midstream services such as rig repair, this sector already provides 35 000 formal jobs opportunities in the province. Through Project Khulisa, we have the goal of adding a further 60 000 formal jobs in this sector and increasing its economic contribution to R11 billion, from its current R5 billion.
The Black Industrialist Programme is part of the incentive package from the DTI and has set criteria according to definitions of the size (e.g. in terms of turnover) and type (e.g. in terms of job potential, industrial products, ownership and control) of companies.
This programme is available to any potential investor or contractor in the IDZ.
The Western Cape Department of Economic Development and Tourism is working with the business community in Saldanha Bay to ensure they are ready to access opportunities coming to the IDZ. To this end, the IDZ hosts the Business Forum, which is governed by a charter signed by representatives from 8 local business organisations, namely:
- Saldanha BBBEE forum
- Saldanha Bay Black Business Women’s Association
- West Coast Business Development Centre
- West Coast Socio-Economic Development Forum
- Weskus Sakekamer
- Cape Chamber of Commerce (West Coast Chapter)
- West Coast Women in Construction
- Saldanha Bay Tourism Organisation
[b] The Business Forum keeps members updated on developments during the construction phase at the IDZ.
All tenderers need to submit an LED plan with their tender which is evaluated before considering the price offer.
The IDZ has been achieving 25% local content on their construction projects. This includes one of the main contractors currently on site, who is in Joint Venture partnership with a Saldanha-based, black-owned construction company. Additional sub-contracting opportunities for black-owned SMEs are being facilitated. The total value of these opportunities exceed R65 million. Another R173 million worth of construction work for phase 1 is in the design phase.
[c] The Department is to spend approximately R9 million on SME development in support of the Black Industrialist Programme.
The first programme is to offer business skills support for entrepreneurs and to improve the market access of the business.
In total, 76 businesses are receiving business support.
Businesses meeting the criteria of the National Gazelles programme (the feeder to the Black Industrialist programme) will be encouraged to apply to be part of the programme.
The second programme is the Cape Capital Fund, which was established to provide a matching grant to businesses and would benefit from an intervention (including capacitation of the enterprise), purchase of equipment or any market access intervention. Recently the department assisted 27 businesses through this programme and they will be encouraged to apply to be part of the National Gazelles programme.
[2] The member companies of the organisations in the IDZ Business Forum will be targeted for development, including potential access to the Black Industrialist Programme.
