ANNOUNCEMENT 05 Jun 2018

The South African Government provided Yekani Information and Communication Technology with ZAR 350 million.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Department of Trade and Investment. Newsroom. Media Statements. "Minister Davies Launches R1 Billion Smart Factory in East London" Available at: https://www.thedti.gov.za/editmedia.jsp?id=4474

Department of Trade and Investment. Financial Assistance. Null Incentives. Special Economic Zone (SEZ). Available at: https://www.thedti.gov.za/financial_assistance/financial_incentive.jsp?id=59&subthemeid

Department of Trade and Investment. Economic Empowerment. Black Industrialist Programme. Available at: http://www.dti.gov.za/economic_empowerment/Black_Programme.jsp

Inception date: 05 Jun 2018 | Removal date: open ended

State loan

On 5 June 2018, the Department of Trade and Investment of South Africa has announced the allocation of ZAR 350 million (over USD 27.4 million) to Yekani Information and Communication Technology. The objective of these resources has been the construction of a new electronics and manufacturing factory in the East London Special Economic Zone in Eastern Cape which opened on 5 June 2018.

The resources provided by the South African government have been distributed via the Special Economic Zone Fund.

In addition to these resources, Yekani has also secured a ZAR 50 million (circa USD 4 million) grant from the Black Industrialists Programme.

 
Special Economic Zone Fund
The Special Economic Zone (SEZ) Programme counts with a financing instrument that seeks to encourage private sector involvement in the development of the scheme. In this sense, the programme established a fund to provide investors with multi-year funding for projects related to the improvement and development of key infrastructure that contributes to increasing exports of value-added products; improving the levels of localisation and related value chains; increasing job opportunities and FDI flows; as well as contributing to the creation of industrial hubs and clusters.

AFFECTED SECTORS

 
Inception date: 05 Jun 2018 | Removal date: open ended

Financial grant

The announcement made by the Department of Trade and Investment of South Africa on 5 June 2018, also stated that Yekani Information and Communication Technology had secured a grant of ZAR 50 million (circa USD 4 million) to be used in the construction of a new electronics and manufacturing factory in the East London Special Economic Zone in Eastern Cape.

These resources come from the Black Industrialists Programme, a governmental scheme that seeks to increase the participation of black-owned companies in the economy, by providing funds to finance expansion and investment projects.