Industrial Development Corporation (IDC) Funding
IDC funding is available to those who have an existing business or wish to start a new one; those that have the visions of job creation along with serving previously disadvantaged communities.
The IDC achieves its goals by providing finance for industrial projects, promoting partnerships between and across industries within SA and internationally. It focuses on projects that finance and facilitate, that lead to the creation and innovation of new industries. It also focuses on diverse expertise to drive growth in priority sectors and to take on higher-risk funding projects.
The IDC supports B-BBEE and actively boosts and promotes black-owned and managed business along with those with employment equity. It aims at developing the skills of black employees and business owners, by supporting local, regional, provincial and national government projects.
The Different Types of IDC Funding
1. Development Funds.
- These funds aim at supporting projects that will have high long-term impacts on the economy through growth.
- Its aim is to bring projects out of the informal sector and into the economic mainstream.
- Please find more information on these funds and links to the online application process here.
2. Agro-Processing Competitiveness Fund
- This government fund provides support and helps businesses to achieve increased competitiveness, business growth, job creation and development in the agro-processing and beverages industries.
- For further information and a link for the online application process please visit here.
3. Product Process Development Scheme (PPD)
- The aim of this fund is to provide financial support to micro and small enterprises where the total assets are below R5 million, annual turnover is less than R13 million, and the business employs less than 50 people.
- The fund intends to promote innovation and technology development with financial support.
- This enables the development of new products and/or processes.
- 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.
4. Risk Capital Facility Programme
- IDC Funding aimed at providing risk finance to businesses owned by previously disadvantaged individuals that offer substantial job creation potential.
- 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.
This programme provides three channels of funding:
- Direct channel operating alongside IDC’s mainstream business
- Through a niche fund channel
- Third party channel.
5. Transformation and Entrepreneurship Scheme
- This fund finances marginalised groups of South Africans such as women and the disabled.
- The aim of the fund is to gain access to finance that will help to develop and grow your business as a start-up or through expansions or acquisitions.
- This IDC funding also offers mentorship and non-financial support including business planning, training and mentorship.
- 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.
6. Green Energy Efficiency Fund
- The fund aims at improving energy efficiency and helping South Africa become a low-carbon economy.
- It aims to drive down energy related costs, improve production capacity, operational effectiveness and competitiveness, which would aid in job creation.
- 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.
How Can You Apply for IDC Funding?
The IDC government funds aims are: Job creation potential, rural development, urban renewal and poverty alleviation, the employment of women and youth as well as up-skilling of employees. All of the projects that the IDC funds, need to show economic viability and sustainability and should target previously disadvantaged groups, women, people with disabilities, low income working groups and marginalised communities.