IDC announces record funding approvals

News & events

3rd Quarter 2009 News & events

The Industrial Development Corporation (IDC) has announced a strong performance for the year ended 31 March 2009, with funding approvals up 27% to R10,8bn and funding in the rest of Africa up by 38% to R2,9 billion. The corporation reports that its approved funding activity will facilitate the creation of 24 200 direct jobs in South Africa.

In a difficult year that saw South Africa slip into a recession for the first time in 17 years, the IDC’s workout and restructuring unit, which focuses on distressed companies, was particularly busy with more than R500m spent assisting companies affected by the domestic economic slowdown.

Funding initiatives

In addition to responding to the crisis, the IDC has continued to focus on funding projects and firms geared at addressing the structural challenges facing the economy, particularly those that address catalytic infrastructure, next generation and green investment as well as small and medium enterprises, in support of the national agenda and South African industrial competitiveness.

The bulk of funding (52%) for the 2008/2009 financial year was on start ups and expansions; ownership changes accounted for 15% of loans, while restructuring and rescue absorbed 5% of funds approved.

In line with its role to support sustainable economic growth and development, the IDC approved R8,9 million worth of business support grants to assist clients through skills development and consultancy services, up from R2.6 million in the previous year.

Transformation and Entrepreneurship Scheme

In 2008 the IDC established the R1 billion Transformation and Entrepreneurship Scheme (TES). The purpose of the scheme is to help entrepreneurs access finance to develop or grow their business by providing capital for start-up businesses, expansions and acquisitions. The TES is available through five funds, focusing on the financing needs of entrepreneurs from previously disadvantaged groups such as women; people with disabilities; worker groupings; and community groupings. Each of the five funds has different rules for participation.

In addition to the funding, the TES has a business support component aimed at assisting with the funding of the specific training needs of the beneficiaries of the scheme.

For a project to qualify under any of the funds under the scheme, the entrepreneurs need to present an economically viable business concept. The IDC conducts a thorough due diligence to evaluate all proposals and projects in this respect. It is therefore important that applicants submit a complete and a detailed business plan to expedite the appraisal process.

Further details of the scheme are available in a downloadable brochure: www.idc.co.za/Brochures/TES Brochure.pdf

For more information contact the IDC Call Centre, 0860 693 888, [email protected], www.idc.co.za

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IDC announces record funding approvals

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