The Industrial Development Corporation (IDC) has been around since 1940 and is a national development finance institution belonging to the government and is designed to promote economic and industrial development.
The IDC achieves its goals by providing finance for industrial projects and promoting partnerships between and across industries within South Africa as well as across its borders.
Projects financed and facilitated include those that are high-impact and labour intensive, leading the creation and innovation of new industries, using diverse expertise to drive growth in priority sectors, and to take on higher-risk funding projects.
The IDC supports B-BBEEE and is actively involved in boosting and promoting black-owned and managed business and those with employment equity, by developing skills of black employees and business owners, by supporting government projects on local, regional, provincial and national levels, encouraging its stakeholders to comply with B-BBEEE policies, and encouraging the private sector to co-finance B-BBEEE transactions.
IDC Funding: Types of IDC funding available
Development Funds
These funds are aimed at supporting projects that will have high long-term impact on the economy through growth. Its aimed at bringing projects out of the informal sector and into the economic mainstream.
How to apply
Please find more information on these funds and links to the online application process here.
Agro-Processing Competitiveness Fund
This fund provides support and facilitates increased competitiveness, business growth, job creation and development in the agro-processing and beverages industries.
How to apply
For further information and a link for the online application process please visit here.
Gro-E Scheme
Through this scheme, over the next five years the IDC is investing R10 billion that will offer financial support to start-up businesses that includes funding for buildings, equipment, and working capital.
At the heart of this scheme is job creation through business that are: Green industries, agricultural value chain, manufacturing, clothing and textiles, footwear and leather, forestry, paper, pulp, furniture, chemical, pharmaceutical, plastics, mining value china, tourism and services, media and entertainment, and knowledge economy.
The Gro-E Scheme is aimed at start-up businesses and works by funding businesses with a minimum of R1 million to a maximum of R1 billion per project with interest of prime less 3% for loans and the Real After Tax Internal Rate of Return (RATIRR) of 5% for equity financing.
Funding is available over five years or until the scheme is exhausted.
How to apply
For more information on the Gro-E Scheme and to apply for funding continue to the website.
Product Process Development Scheme (PPD)
This is aimed at providing financial assistance to micro and small enterprises where total assets are below R5 million, annual turnover is less than R13 million, and the entity employs less than 50 people.
The fund is intended to promote innovation and technology development through financial assistance enabling the development of new products and/or processes.
How to apply
For more information on the PPD Scheme continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
Risk Capital Facility Programme
Here, this fund provides risk finance to companies owned by previously disadvantaged individuals that show substantial job creation potential.
Funding can be provided through three channels: Direct channel operating alongside IDC’s mainstream business; through a niche fund channel; and third party channel.
How to apply
For more information on the Risk Capital Facility Programme continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
Transformation and Entrepreneurship Scheme
This has been set up by the IDC to finance marginalised groups of South Africans such as women and the disabled.
This fund helps individuals gain access to finance that will develop and grow their businesses either as a start-up, or through expansion and/or acquisition.
This fund also provides mentorship and non-financial support such as business planning, training and mentorship.
How to apply
For more information on the Transformation and Entrepreneurship Scheme continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
Green Energy Efficiency Fund
This fund is aimed at improving energy efficiency and helping South Africa transition to a low-carbon economy. It is intended to drive down energy related costs, improve production capacity, operational effectiveness and competitiveness – thus aiding in job creation.
How to apply
For more information on the Green Energy Efficiency Fund continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
Women Entrepreneurial Fund
As the name suggests, this fund is aimed at improving entrepreneurial participation by women.
Funds will only be given to businesses with a minimum 50% shareholding by women and where women are involved in operations and management, and where funds are needed for start-up or expansion.
Funds are provided for businesses with a total asset base of less than R80 million and a maximum provision of finance is R30 million per transaction.
How to apply
To apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
Distressed Fund
This fund is designed to assist small and medium businesses negatively affected by the global recession.
The main objective of this fund is to keep businesses open, stem job losses and maintain a productive economy.
The fund helps by building capacity in existing business – thereby creating jobs – as well as providing for working capital, operational and capital expenses, and assisting in competitiveness.
How to apply
For more information on the Distressed Fund continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
The Manufacturing Competitiveness Enhancement Programme (MCEP)
This is a new suite of incentives aimed at existing manufacturers that is designed to promote competitiveness in the industry as well as ensure job retention. It consists of industrial financing loan facilities and production incentive grants.
How to apply
For more information on the The Manufacturing Competitiveness Enhancement Programme (MCEP) and to apply for funding continue to the website.
How to access IDC Funding
The IDC assesses applications for funding based on (but not exclusively) job creation potential, rural development, urban renewal and poverty alleviation, the employment of women and youth, as well as skills development.
All projects funded must show economic viability and sustainability and should target previously disadvantaged groups, women, people with disabilities, low income working groups, and marginalised communities.
Contact details for IDC funding
For more information on any of the funds visit www.idc.co.za. You can also phone the IDC call centre on 0860 69 38 88 or email callcentre@idc.co.za.
