IDC
The Industrial Development Corporation of South Africa (IDC) is a government owned institution that offers business different funding solutions to start ups and existing businesses. The mandate of the IDC is to maximise 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. The following are the main sectors that the IDC funds:
- Agro-processing and agriculture,
- Automotive and transport equipment,
- Chemicals, medical and industrial products
- Energy,
- Infrastructure,
- Machinery, equipment and electronics,
- Media and audio-visual,
- Mining and metals,
- Textile and wood products and
- Tourism and services.
These are sectors that create the most jobs and contribute a large portion to the country’s Gross Domestic Production (GDP).
Special Funding Solutions
In addition to the general funding solutions the IDC also has special funding solutions i.e special schemes and covid-19 funding. The aim of these special funding solutions is to either target a specific sector or group and reduce the general funding requirements to make funding accessible and cheaper for more businesses. Each special funding solution has its own specific funding requirements visit the IDC page for full detail https://www.idc.co.za/what-we-offer-2/##products.
Funding Amount
The IDC will fund in the range of R1 million to R50 million per applicant. The interest for funding are as per the general funding criteria of the IDC expect when applying for special funding solutions.
General funding Criteria
Minimum requirements
- Compliance with international environmental standards.
- Shareholders/owners are expected to make a 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 re-finance fixed assets since our aim is to expand the industrial base.
Expansions by existing businesses
In addition to the minimum requirements the following are required for businesses needing to expand:
- Latest audited and actual financials (signed by the finance director, MD or CEO).
- Your updated business plan focusing on the proposed project/expansion.
- A detailed description of the nature of expansion, its related costs and revenues.
- A comprehensive business plan.
Small, medium and start-up businesses
- A comprehensive business plan.
The IDC has a number of requirements that need to be met in order for businesses or prospective businesses to be able to secure funding. Once these requirements are met to the satisfaction of the IDC, it is only then funds can be made available to expand your business or launch your start-up.
