The IDC is a state-owned funding
organisation that supports small,
medium and micro enterprises
(SMMEs) and assists new
entrepreneurs to enter the economy.
Its financial instruments include
loans, venture capital, equity,
quasi-equity, share warehousing,
wholesale and bridging finance,
guarantees .export and import
finance and short-term
trade finance.
Every application is considered
on its own merits but the IDC
does use some broad financing
criteria. Every project should exhibit
economic merit - in other words
it needs to be profitable. It favours
the development of new projects,
expansions or rehabilitation of
existing projects. Whether it
requires security or takes equity
in a business (and if so, how
much) depends on the nature of
the business, its risk profile and
ability to contribute significantly to
economic development.
Security is tailored to each
transaction and may include
personal suretyships, corporate
guarantees, bonds over fixed
and moveable assets and pledge
or cessation of shares. Where
applicable, businesses should also
comply with relevant environmental
legislation.
The minimum and maximum
amounts applicable for funding
applicants varies from sector to
sector. These include:
■ Chemicals and allied industries
■ Metal, transport and machinery
products
■ Wood and paper Industries
■ Techno-industries
■ Textile and clothing
■ Healthcare and education
■ Transportation, financial services,
security and catering
■ International finance
■ Food, beverage and agro
Industries
■ Mining and beneficiation
■ Public and private partnerships
■ Venture capital
■ Franchising
■ Media and motion pictures
In the lead up to the FIFA 2010
Soccer World Cup, it has also
placed greater emphasis on the
tourism and construction sectors: