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Rebate Facilities for Titanium Dioxide Under the Spotlight

June 23, 2022

Department of Trade, Industry and Competition

Amendments to proposed rebate facilities for titanium dioxide are in the pipeline.

The trade, industry and competition department published the draft amendments in Government Gazette 46581 for comment.

The International Trade Administration Commission (ITAC) is considering creating rebate facilities on titanium dioxide for use in the manufacture of paints and varnishes and white masterbatch.

According to the ITAC, the potential local manufacturer, Nyanza Light Metals (“Nyanza”) is at an advanced stage of developing local capacity and, in order to avoid creating any uncertainty on the extent of possible protection offered to the Nyanza project, ITAC is considering limiting the validity period of the proposed rebate provisions to 24 months from the date of implementation.

Comment is invited within two weeks of the date of publication.

Meanwhile, the department recently briefed parliament on the support for transformation and black industrialists.

Cabinet approved the Black Industrialists Policy in 2015.

It seeks to increase the level of participation of black South Africans in ownership and control of productive enterprises in key sectors and value-chains.

Challenges faced by black industrialists include limited access to support and facilities from commercial banks, based on lack of business track records or collateral; concentrated markets where existing dominant firms effectively limit entry of new players – for example, exclusivity leases in shopping malls have kept smaller grocery retailers out of major market platforms; limited market experience in some sectors, resulting in over-expansion, or limited ability to respond to fast-changing market conditions or reliance on a limited number of large customers; weak governance arrangements in company boards and over reliance on one contract making them unsustainable and uncompetitive in the long term.