In the year ended 31 March 2025, the dtic disbursed approximately R4.2 billion in government incentives.
Of this:
- R1.3 billion was paid to Black Industrialists and black-owned companies (≥51% black ownership)
- The remaining ±R2.8 billion was paid to companies that did not meet a majority black ownership threshold but did meet the B-BBEE requirements of specific incentive programmes.
The above payouts dispel a common misconception that the Grants are only focussed on black controlled companies. Although empowerment is a very important component of deciding who gets Grant funding, so is industrialisation, job creation and innovation. The reality is:
- Only one program requires 51% black ownership;
- Most still require a minimum Bee level 4 – this can be achieved with 25% black ownership; and
- There are a few incentives that require less than level 4 – this can be achieved with zero black ownership if the other elements of the BEE scorecard are still achieved
These incentive programmes are cost-reimbursive in nature and are therefore most relevant to established businesses with sufficient upfront capital to fund sizeable capital or expansion projects, rather than start-ups or small-scale initiatives.
When considering these programmes, it is generally best to focus on opportunities where the incentive value is meaningful, and the project economics reasonably justify the effort involved.
If you want to understand:
- Whether your business may qualify for a specific programme, or
- How B-BBEE and ownership requirements differ by incentive,
you can:
• Contact Grant Whittaker for a high-level qualification discussion (grant@agilequity.co.za), or
• Download our Grants & Incentives Summary, which sets out the B-BBEE requirements per programme. #Agilequity #GovernmentIncentives #BBEE #Manufacturing #Infrastructure #BPO
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