Industrial Development Corporation


Location : South Africa
Website: Visit Website

About

We are a national development finance institution set up to promote economic growth and industrial development. We are owned by the South African government under the supervision of the Department of Trade Industry & Competition.

 

Who we fund

Here are the sectors/industries we provide funding to:

  • Agro-processing & Agriculture
  • Chemical Products & Pharmaceuticals
  • Basic & Speciality Chemicals
  • Clothing & Textiles
  • Heavy Manufacturing
  • Light Manufacturing
  • Media & Audio Visuals
  • Machinery & Equipment
  • New Industries
  • Tourism
  • Automotive & Transport Equipment
  • Industrial Infrastructure
  • Basic Metals And Mining

 

What we offer

We fund entrepreneurs starting new enterprises or support companies that want to extend existing operations.

 

Funding can be structured in a number of ways:

  • Debt
  • Equity and quasi-equity
  • Guarantees
  • Trade finance
  • Venture capital

 

Requirements

  • Security: The form and nature of which will relate to your specific circumstances
  • Compliance: With international environmental standards
  • Shareholders/owners: are expected to make some financial contribution:- the contribution of historically disadvantaged people under special circumstances may be lowered, in which case the corporation will be prepared to extend finance in excess of the owner’s contribution
  • Sustainability: The Project/Business must exhibit economic merit in terms of profitability and sustainability
  • Refinance: We do not refinance fixed assets, since our aim is to expand the industrial base
  • Black economic empowerment: We also focus on broad-based and expansionary black economic empowerment and black industrialists

 

 

We have a number of special schemes available, administered by our Development Funds department.

 

Special Schemes

Here are some of the special funding schemes available:

 

Gro-E Youth Scheme

To provide finance to renewable energy and energy efficiency projects of smaller scale and manufacturing of Green products in South Africa.

 

Qualifying Criteria

  • Available to South Africans and permanent residents up to and inclusive of the age of 35 years at the time of final approval;
  • Youth shareholding should be at least 26%;
  • Youth operational involvement in the business;
  • Applicant can be a start-up or expansion within South Africa;
  • Cost per job of up to R750 000 for the duration of funding – calculated using total project cost;
  • Applicant to meet the BBBEE requirements of the IDC – level 4 or have a plan to achieve this within 24 months; and
  • Own contribution will be determined by the financial capacity of the entrepreneur and the cash flow profile of the business.

For more visit: https://www.idc.co.za/gro-e-youth-scheme


Manufacturing Competitiveness Enhancement Programme (MCEP) Scheme

Consisit of:

  • Working Capital Facility: To assist manufacturing companies with working capital.
  • Plant & Equipment Facility: To provide finance to Black Industrialists for the acquisition of plant and equipment.

 

Qualifying Criteria (for Working Capital Facility)

  • Only available for working capital requirements;
  • Start-ups only considered for Black Industrialists’ businesses;
  • Only applicable to manufacturers under Standard Industrial Classification Code 3;
  • Applicant may not contemplate workforce reductions during the term of the facility;
  • Applicant required to achieve BBBEE Level 4 within 24 months;
  • MCEP funds are blended at a leverage level of at least 20% funding from IDC; and
  • Pre and post Business Development provided at a maximum of R3 million per applicant.

 

Qualifying Criteria (for Plant & Equipment Facility)

  • Only applicable to Black Industrialists’ businesses;
  • Only available for plant and equipment requirements;
  • Applicable to start–up businesses, expansions and expansionary acquisitions;
  • Applicant may not contemplate workforce reductions during the term of the facility;
  • Only applicable to manufacturers under Standard Industrial Classification Code 3;
  • Applicant will be required to achieve BBBEE Level 4 within 24 months;
  • MCEP funds are blended at a leverage level of at least 20% funding from IDC; and
  • Pre and post Business Development will be provided at a maximum of R3 million per applicant

For more visit: https://www.idc.co.za/MCEP


UIF II Scheme

To contribute towards sustainable job creation and retention by supporting job creating transactions while providing concessionary funding.

 

Qualifying Criteria

  • Applicant can be a start-up and existing businesses whose applications are geared to saving and/or creating jobs;
  • Job Creation/saving:
    • Cost per job of up to R750 000 for the duration of funding – calculated using total project cost (total funding requirements of the project from all sources (i.e. the IDC, promoters, other funders, etc.) divided by the number of permanent jobs to be created and/or saved; or
    • Minimum of 150 jobs (cost per job does not apply).
  • UIF II funds are blended at a leverage level of at least 30% financing from normal IDC risk-priced funding (i.e. excludes off-balance sheet and other IDC concessionary funding);
  • Applicants need to demonstrate compliance with the UIF regulations (i.e. existing businesses to demonstrate that all its employees are registered with UIF as well as that monthly and annual contributions are up to date prior to the loan being disbursed) and all successful applicants to provide confirmation of compliance (letter of good standing) to IDC on an annual basis during the funding period;
  • No double dipping; i.e. transactions previously funded utilizing UIF funds (whether it be for job creation or job saving) cannot be considered for funding again to save jobs under the UIF II; and

 

Transactions in distress (job saving) must not be paying dividends to its shareholders for the period of the loan.

For more visit: https://www.idc.co.za/uif-ii


AFD Green Energy Fund Scheme

AFD Green Energy Fund provides finance to renewable energy and energy efficiency projects of smaller scale and manufacturing of Green products in South Africa.

 

Qualifying Criteria

  • Renewable Energy (RE):
  1. Solar and biomass; and
  2. Other technologies are considered on a case by case basis.
  • Energy Efficiency (EE):
  1. A maximum of 200% increase in production capacity is allowed for expansion projects; and
  2. Greenfield operations are considered on a case by case basis.
  • AFD funds are blended at a leverage level of at most 50% funding from IDC; and
  • No refinancing.

For more visit: https://www.idc.co.za/afd-green-energy-fund


Youth Pipeline Development Programme Scheme

To improve the readiness of potential applicants and thereby increase their probability for IDC consideration.

 

Qualifying Criteria

  • Available to youth-owned businesses (irrespective of whether it qualifies for Gro-E Youth or not);
  • Application must meet IDC sector and funding limits;
  • Applicant can be start-up or expansion;
  • Pre-BA assistance:
    • Proposal must pass a readiness assessment and in-principle go-ahead from sector SBU Head;
    • To bring an application to bankable stage, including detailed marketing studies, mentoring, technical assessments, sourcing and negotiating with suitable suppliers, costing of products, QS costings, EIAs etc.); and
    • Up to 6% of potential investment amount up to a maximum of R350 000.
  • Post approval assistance:
    • Pre implementation – for assistance required in meeting/ clearing of CPs (must be specific and be supported by cost estimates, with clear milestones with regards to objectives and skills transfer);
    • Implementation – for in depth mentoring and coaching as well as any other business support required for up to 2 years; and
    • Up to 40% of the investment amount or a maximum of R1.5 million.
  • Interventions provided during pre-BA and pre-implementation stages must not take more than 6 months to be completed.

For more visit: https://www.idc.co.za/youth-pipeline-development-programme


Downstream Steel Industry Competitiveness Fund (DSCIF)

To help the struggling steel industry with an interest subsidy that offers discounts to qualifying clients.

 

Qualifying Criteria:

  • Applicant can be a start-up and expansion; and
  • Enterprises that create net additional employment are prioritized, particularly opportunities with greater labour intensity. Saved jobs are also be considered.

For more visit: https://www.idc.co.za/DSCIF


Green Tourism Incentive Programme

The Green Tourism Incentive Programme (GTIP) is an initiative of the National Department of Tourism with a key objective of encouraging privately-owned tourism enterprises to move towards cleaner and renewable energy sources and the efficient utilization of water.

Managed by the IDC, financial assistance under the GTIP is provided in the form of a grant of up to R1 million to qualifying small and micro tourism enterprises.

For more visit: https://www.idc.co.za/GTIP


SMES and  MIDCAP Companies

To assist SMEs and MIDCAP companies to access loan financing for CAPEX, medium and long term working capital.

 

Qualifying Criteria

  • Application must meet IDC and EIB mandated sectors;
  • Available to SME and MIDCAP companies. MIDCAP means companies that have up to 3000 employees (full time equivalent);
  • Funding provided for CAPEX and medium to long term working capital;
  • Final Beneficiary (company) and project location must be South African;
  • Total cost of a project must not exceed R450 million;
  • Only eligible to Autonomous Enterprises, where the enterprise does not hold 25% or more of the capital or voting rights in one or more other enterprises and no enterprise has a stake of 25% or more of its capital or voting rights;
  • Exempted Investors may hold up to 50% of the capital or voting rights but do not exercise a dominant influence. Exempted Investors are public investment corporations, venture capital companies and business angels, universities, non-profit research centers, institutional investors including regional development funds, autonomous local authorities with an annual budget of less than EUR10 million and fewer than 5 thousand inhabitants;
  • EIB approval required before drawn down of the Funds’ facility; and
  • Drawdown conditions apply.

For more visit: https://www.idc.co.za/smes-midcap-companies


 

How to Apply

To apply visit: https://protected.idc.co.za/clientportal

 

Contact Us

Head Office

19 Fredman Drive, Sandown

PO Box 784055
Sandton, 2146

Tel: 011 269 3000
Fax: 011 269 3116

 

Call Centre

Tel: 0860 693 888

Email: [email protected]

 

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For regional office contacts visit: https://www.idc.co.za/contact-us/