Company name: Industrial Development Corporation of South Africa
Contact telephone number: +27 11 269 3000
Postal address: P.O. Box 784055, Sandton, 2146
Physical address: 19 Fredman Drive, Sandown
Email address: email@example.com
Website address: www.idc.co.za
Established in 1940, we are a national development finance institution set up to promote economic growth and industrial development. We are owned by the South African government under the supervision of the Economic Development department.
Our primary focus is to provide risk finance to companies owned by historically disadvantaged people. In addition, the companies – small and medium enterprises – must show significant job creation potential. The funding is provided by the European Community through the Department of Trade and Industry. The IDC co-manages the fund with the European Investment Bank.
There are three channels through which funding is provided: a direct channel operating alongside the IDC’s mainstream business; a niche fund channel, where venture capital funds target a specific sector that has a developmental focus; and a third party channel, where funds co-invest with other financial institutions. The maximum investment for the niche fund channel is R30-million.
All applicants must fulfill our investment criteria:
- Demonstrate financial profitability, technical feasibility and economic viability and be environmentally sound;
- Highlight job creation features and empowerment compliance;
- Demonstrate elements of women entrepreneurs;
- Show a significant involvement of historically disadvantaged persons in management;
- Demonstrate compliance with South African environmental legislation; and
- Have a programme for HIV/Aids prevention and awareness.
All sectors of the economy are eligible except for projects in armaments, tobacco, and gambling fields and investment terms are decided on a case-by-case basis.
Guidelines for those applying for direct or third party channel funding:
- The applicant must be an SME;
- The minimum historically disadvantaged persons ownership must be 25% and above;
- Job intensity of an investment, calculated on a cost per job basis, may not exceed R60 000;
- The minimum investment amount will be R250 000 for township and rural areas and R500 000 for other areas; and
- There is a maximum single investment amount of R20-million; and funds will be applied to improving the financial structure of under-capitalised companies.
Guidelines for those applying for niche fund channel support:
- Applicants must invest in SMEs;
- The maximum investment is R30-million;
- The Risk Capital Facility Programme will always be a minority equity investor;
- The exit period will be determined on a case-by-case basis; and
- The fund manager must demonstrate a sound track record, with a minimum historically disadvantaged persons ownership of 25% plus one share.