What funding products are available?
The IDC funds start-up and existing businesses with a minimum funding requirement of R1 million and a maximum of R1 billion.
Funding can be structured utilising a wide array of instruments including:
- Debt
- Equity
- Quasi-equity
- Guarantees
- Trade finance
- Bridging finance
- Venture capital
The funding will be structured in the most appropriate manner to meet the business needs, and structuring options include:
- Funding term: short-, medium- and long-term loans are available
- Payment holidays: this can be negotiated where applicable, allowing for periods where no payments need to be made on either capital or interest
- In addition, several special schemes are available including:
- The Gro-e-Scheme that funds businesses with a high job creation potential at an interest rate of prime less 3%
- The UIF Fund that funds businesses with a high job creation potential at a fixed interest rate of 6%
- Transformation and entrepreneurial development (TES) that aims to assist entrepreneurs from marginalised groups to access the formal economy; Distressed Funding schemes that aim to save jobs by assisting companies across various sectors that have been affected by adverse conditions such as the recent economic downturn, the strong SA currency and natural disasters (e.g. floods, drought and fire)
- Sector-specific schemes (horticulture, forestry, clothing and textiles, hospitals)
Minimum 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 IDC will be prepared to extend finance in excess of the owner’s contribution
- The project/business must exhibit economic merit in terms of profitability and sustainability
- The IDC does not refinance fixed assets, since our aim is to expand the industrial base
Rest of Africa SBU
The unit identifies, assesses and facilitates investment opportunities for the IDC in the rest of Africa to support the growth of South Africa’s industrial base and economy. It develops regional suppliers for South African industries, thereby building long-term, sustainable supply chains across the continent that generate jobs. Key focus areas are agriculture, manufacturing, tourism, minerals and mining, petroleum and energy, transport and other related infrastructure.
Focus sectors
Agro-processing and Agriculture SBU
The SBU focuses on investment opportunities in livestock processing, selected field crop processing, integrated horticulture, aquaculture with focus on mariculture and forestry development. The key is to ensure food security and the creation of employment by putting South Africa’s natural resources to productive use. More >
Automotive and Transport Equipment SBU
The unit focuses on the opportunities that exist in established automotive and transport equipment and components manufacturing sub-sectors. The key is to create sustainable industries with goals of increasing local production of vehicles and components that feed into global supply chains, thereby improving the country’s international competitiveness. Focus areas for the SBU are passenger and commercial vehicles, automotive components, shipbuilding and ship repair, rail components and infrastructure as well as medium and heavy vehicles, buses and trucks. More >
Basic Metal and Mining SBU
The unit focuses on building capacity in the beneficiation and local value addition activities that not only drive exports but also help lower input cost to make downstream and upstream industries more competitive. Focus is on the metal products, mining, steel and metals industries. More >
Basic and Speciality Chemicals SBU
The unit is uniquely positioned to provide development finance and support to the long-term sustainability of the chemical value chain. The SBU funds investigations into smart technologies, environmentally friendly chemicals and new materials that could provide unique market opportunities, as well as identifying opportunities for new consumer products production capacity or localisation. More >
Chemical Products and Pharmaceuticals SBU
The key focus of this SBU is to establish new manufacturing capabilities in agro-chemicals, build a vibrant competitive local pharmaceuticals and chemical products industry as well as improve the competitiveness of the country’s plastic products sector. More >
Clothing and Textiles SBU
The unit pursues opportunities in cashmere, mohair and the cotton value chains with the aim of assisting in the development of a flax industry cluster. The SBU’s primary focus is to develop new opportunities, niche industry sub-sectors and improve the sustainability of existing enterprises in traditional textiles. The secondary focus is to recover and sustain capacity of clothing, footwear, yarn and towelling in an attempt to protect this vital job creating sector. More >
Heavy Manufacturing SBU
The unit is a reflection of the prioritisation of transformative action by the IDC to further industrialise South Africa and create jobs. The primary focus is on cement, lime, clay, ceramic and stone products, sawmilling and wood products, pulp and paper products, rubber glass and ceramic products, and other non-metallic products and non-metallic recycling. More >
Industrial Infrastructure SBU
The SBU acts as the initiator and enabler of key industrial infrastructure that will support the country’s industrialisation drive. The unit identifies various business units and value chains that are faced with industrial capacity and infrastructure constraints and facilitates infrastructure investments to help them achieve their goals. The units’ focus areas are logistics, energy, Telecoms Broadband, health and water infrastructure. More >
Light Manufacturing and Tourism SBU
The unit identifies industrial output to facilitate rapid and prudent investments in activities that can contribute to the creation of new light manufacturing and tourism capacity, which can contribute to job creation, sustainable niche businesses and localisation. More on Light Manufacturing >
More on Tourism >
Machinery and Capital Equipment SBU
The SBU supports industrial activity in the production and fabrication of machinery and capital equipment by financing the expansion of projects, improving competitiveness and facilitating market access. The focus is on building capacity in beneficiation and local value addition activities that not only drive exports but also help lower input costs to make downstream and upstream industries more competitive. More >
Media and Audio-Visual (MAV)
The SBU focuses on funding motion pictures, digital cinemas in townships, broadcasting for the development of black industrialists, developing the animation hub and animation films. The unit not only invests in the production of content, but also in the services and infrastructure that support productions in this highly significant industry. More >
New Industries SBU
The key objective of this SBU is to identify the most promising new and emerging industry value chains and enabling technologies and to then support and nurture them so that they become globally competitive new industry value chains that facilitate jobs-rich industrialisation and which make a meaningful contribution to South Africa’s economic growth. Industry value chains / enabling technologies that the SBU is currently focused on include Energy Storage, Fuel Cells, Gas Beneficiation, Renewable Energy Inputs, Medical Devices, Natural Products, Additive Manufacturing and Nano-technology. More >
Rest of Africa SBU
The unit identifies, assesses and facilitates investment opportunities for the IDC in the rest of Africa to support the growth of South Africa’s industrial base and economy. It develops regional suppliers for South African industries, thereby building long-term, sustainable supply chains across the continent that generate jobs. Key focus areas are agriculture, manufacturing, tourism, minerals and mining, petroleum and energy, transport and other related infrastructure.
