The IDC’s strategic business unit (SBU) for clothing and textiles offers support to a variety of enterprises across the sector, ranging from creators of home décor to leather goods producers to manufacturers of natural or synthetic fabrics. The aim is to build a locally and regionally competitive industry through strategic partnerships that promote entrepreneurship and social and industrial development.
The unit also manages a Clothing, Textiles, Footwear and Leather Competitiveness Improvement Scheme. The unit works closely with the Clothing Textiles Competitiveness Program which is a grant scheme managed on behalf of the dti.
Objectives of the SBU
- To support the development of a viable model for a competitive, sustainable local clothing and textiles industry.
- To assist existing enterprises to expand and to assist the establishment of new enterprises through the provision of funding in order to create and/or preserve jobs and drive social and economic growth.
Doing business with the unit
Our focus is on identifying and developing strategic projects involved in one or more of the following areas:
- Clothing manufacturing;
- Dyeing, printing and finishing of fabrics;
- Footwear manufacturing;
- Household textile production;
- Leather tanning; and leather product manufacturing;
- Natural fibre production, including wool and mohair beneficiation;
- Non-woven textile production;
- Synthetic fibre production;
- Spinning of yarns, knitting and weaving of products;
Who should apply for funding?
Existing manufacturers who wish to expand or modernise their production capacity; manufacturers in distress due to global economic trading conditions; and entrepreneurs looking to start up small to medium manufacturing facilities.
We do not refinance assets.
Every business proposal is considered on its own merits, but preference is given to:
- Financing fixed assets and the fixed portion of growth in working capital requirements;
- Supporting ventures/projects that have a significant socio-economic impact in terms of job creation, value addition, empowerment, rural development, and/or township development;
- Supplying distress funding for troubled companies that have a clear turnaround plan.
Funding criteria
Our minimum investment requirements are:
- Security, of a type related to your business’s specific circumstances;
- Compliance with international environmental standards; and
- Relevant bargaining council compliance.
In addition, shareholders/owners are expected to make a material contribution to the project — generally 35% of total assets for going concerns and 45% – 50% for start-ups, depending on the industry norms and risks involved. We prefer our exposure not to exceed that of the owners of the business.
However, the contribution for start-ups with a material developmental and job creation impact may be lowered, in which case the IDC may be prepared to extend finance greater than the owners’ contribution.
Applying for funding
We consider each application carefully. Click here to apply online.
In addition to the specific requirements of our SBU, applications must meet the IDC’s minimum requirements.
Source: IDC
Main pic: Unsplash
