Industrial Development Corporation Funding for a Multitude of Industries

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The Industrial Development Corporation (IDC) was established in 1940 through the Industrial Development Corporation Act, 22 of 1940, and is solely owned by the government of South Africa. IDC is a national development finance institution, whose primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa, and to the economic empowerment of South Africans, thereby promoting the economic prosperity of all citizens. The IDC achieves this by promoting entrepreneurship through building competitive industries and enterprises founded on sound business principles. DTC can provide access to Industrial Development Corporation Funding and assist with the required developments for funding!

The institute’s priorities are aligned with the national policy direction as set out in the National Development Plan (NDP), Industrial Policy Action Plan (IPAP) and industry Master Plans. Their mandate includes maximising their development impact through job-rich industrialisation, while contributing to an inclusive economy by, among others, funding black-owned and empowered companies, black industrialists, women, and youth-owned and empowered enterprises. Their vision includes creating internationally competitive industries, realising Africa’s potential.

Simultaneously, the IDC must ensure its long-term sustainability through cautious financial and human resource management, safeguard the natural environment, and increasingly position itself as a centre of excellence for developmental finance.

Industrial Development Corporation Funding

As a key implementing agency of industrial policy, the IDC’s activities currently centre on the National Development Plan (NDP), the New Growth Path (NGP) and the Industrial Policy Action Plan (IPAP). They identify sector development opportunities aligned with policy objectives and develop projects in partnership with stakeholders. Through developing industrial capacity, the IDC achieves specific outcomes, including job creation facilitation through the companies they fund.

In addition, IDC funding promotes regional development and integration, economic empowerment of communities and growing black industrialists. The IDC remains committed to promoting environmentally sustainable growth and increasing sectoral diversity to boost the local production of goods. It also plays a key role through its subsidiary, the Small Enterprise Finance Agency (Sefa), in promoting entrepreneurial development and growing the SME sector.

The IDC has contributed to the implementation of South Africa’s industrial policy for more than 80 years and established, among others, the Petro-chemicals, and minerals beneficiation industries. We have stimulated large industrial projects in these industries – acknowledged today as the cornerstones of the country’s manufacturing sector – and influenced the establishment of industries in fabricated metals, agriculture and clothing and textiles.

The IDC’s funding is generated through income from loan and equity investments and exits from mature investments and borrowings from commercial banks, development finance institutions (DFIs), and other lenders. The institute aligns their priorities with government’s policy direction and remain committed to developing the country’s industrial capacity and playing a key role in facilitating job creation, through industrialisation.

manufacturing investment programme

Sectors Eligible for Industrial Development Corporation Funding include:

• Agro-processing & Agriculture;

• Automotive & Transport Equipment;

• Chemicals, Medical, & Industrial Mineral Products;

• Energy;

• Infrastructure;

• Machinery, Equipment, & Electronics;

• Media & Audio-visual;

• Mining & Metals;

• Texttiles & Wood Products; and

• Tourism & Services.

Qualifying Criteria for Industrial Development Corporation Funding includes:

• Start-up businesses, including funding for buildings, machinery and working capital;
• Existing businesses for expansion purposes;
• Businesses that demonstrate economic merit and have prospects of acceptable profitability to service their obligation;
• For the duration of the funding period, businesses whose maximum cost per job does not exceed R500 000 relative to the total funding amount required;
• Broad-Based Black Economic Empowerment certification from an accredited verification agency, if applicable;
• Businesses operating or expanding in South Africa;
• The funding period will be structured to meet the cash flow needs of the business; and
• Appropriate capital and interest payment holidays will be applied depending on the financial needs of the business; and there is no prescribed minimum for owner contribution.

 

Industrial Development Corporation Funding

Contact us for more information on Industrial Development Corporation Funding.