The Black Industrialists Scheme is a cost-sharing grant for black-owned manufacturers, and the first question is not how to apply but whether your business qualifies at all. The bar is high by design: the scheme exists to build black-owned industrial capacity, so a successful retailer, trader or service firm is outside it regardless of turnover.
Who the scheme is for
According to the Department of Trade, Industry and Competition, which runs it, applicants must be juristic persons, which includes companies and co-operatives registered under the Companies Act, operating in manufacturing sectors that align with the government’s industrial strategy. Those sectors include agro-processing, chemicals, clean technology, oil and gas, the blue economy and aerospace, among others.
Ownership must be more than 51% black, where black means African, Coloured and Indian South African citizens. Ownership alone is not enough. The black shareholders must exercise real management control, carry personal business risk and show a long-term commitment to the business. A structure where black shareholders hold equity while someone else runs the operation is exactly what the assessment is built to catch.
How much the grant is worth
The scheme offers a cost-sharing grant of between 30% and 50% of qualifying costs, capped at R50 million. Where you land in that range depends on three things: the level of black ownership and management control, the economic benefit the project delivers, and the overall project value.
Cost-sharing means the grant never covers the whole project. You fund the balance yourself or through other finance, so the grant works best alongside a funder rather than instead of one.
What the grant can pay for
Capital investment is the core: machinery, equipment and the industrial infrastructure a manufacturing project needs. Several supporting costs also qualify, each with its own ceiling:
- Feasibility studies, up to R3 million
- Business development services, up to R2 million
- Post-investment support, up to R500,000
The non-capital items matter because industrial projects often stall on planning and management capacity rather than on equipment. A business that has never commissioned a proper feasibility study can use the scheme to fund one.
If your business sits below the threshold
Most small manufacturers are not yet at this scale, and that is not a dead end. The Agro-Processing Support Scheme funds smaller capital projects in food, beverage and related processing, development finance is available through the Small Enterprise Development and Finance Agency, and corporate supplier development programmes help growing suppliers build the track record larger incentives look for. Our guide to enterprise and supplier development explains how those programmes work.
For a broader overview of what the scheme is designed to achieve, see our guide to the Black Industrialist Scheme, and if you already qualify, our step-by-step piece on preparing a Black Industrialists Scheme application covers what the assessment tests.
Frequently asked questions
What black ownership does the Black Industrialists Scheme require?
More than 51% black ownership, combined with genuine management control by the black shareholders, who must carry personal business risk.
How big is the grant?
A cost-sharing grant of 30% to 50% of qualifying costs, up to a maximum of R50 million, depending on ownership and control, economic benefit and project value.
Can a retail or service business apply?
No. The scheme is limited to manufacturing in sectors aligned with the government’s industrial strategy.
Does the grant cover anything besides equipment?
Yes. It can also fund feasibility studies up to R3 million, business development services up to R2 million and post-investment support up to R500,000.
What if my business is too small?
Consider the Agro-Processing Support Scheme for smaller processing projects, development finance, or a corporate supplier development programme.
Originally published in May 2018. Updated September 2026.
