South Africa: Pavati Plastics Secures ZAR 50 Million Grant from dtic for Industrial Expansion

In March 2021, South Africa's Department of Trade, Industry and Competition (dtic) approved a ZAR 50 million grant for Pavati Plastics Southern Africa under the Black Industrialists Scheme (BIS) to finance the expansion of its production capacities, according to a statement released by Africa Newsroom (APO). Founded as a service company, Pavati evolved between 2015 and 2021 into an integrated manufacturer specializing in extrusion, printing, and packaging, offering products such as stretch film, zip-lock bags, and CPP/MOPP polypropylene. "Between 2015 and 2021, we transitioned from a service activity to manufacturing, featuring extrusion, recycling, and specialized production capabilities focused on import substitution," stated Chief Financial Officer Ntombenhle Nhleko. The BIS funds 30% to 50% of eligible costs, capped at ZAR 50 million. In June 2025, an arbitration committee extended the project by twelve months until May 31, 2026, formalizing the increase in Pavati's black shareholding from 51% to 100%, with 51% held by black women. The company was co-winner of the Sustainability Award at the 2024 Black Industrialists Awards. This upgrade enables South Africa to locally substitute polypropylene substrates previously imported, while consolidating an industrial model entirely owned and managed by black individuals. Pavati's growth illustrates the synergy between public policy—the BIS, a dtic tool to diversify industry under black control—and market drivers: the weakness of the rand favors local production, while global regulatory pressure on recycling enhances the appeal of its energy-efficient machinery.