IDC Finance by Sector

The IDC exists to enhance the industrial capability of South Africa, and the rest of the continent, boosting economic growth and industrial development.

We do this by funding entrepreneurs starting new enterprises or supporting companies that want to extend existing operations.

Our investment principles are based on broad-based and expansionary black economic empowerment.

But there are a number of other requirements that must also be met before funding can be unlocked.

Minimum requirements

• Security, the form and nature of which will relate to your specific circumstances.
• Compliance with international environmental standards.
• Shareholders/owners are expected to make some financial contribution:
  • The contribution of historically disadvantaged people under special circumstances may be lowered, in which case the IDC will be prepared to extend finance in excess of the owner’s contribution.
• The project/business must exhibit economic merit in terms of profitability and sustainability.
• The IDC does not re-finance fixed assets since our aim is to expand the industrial base.

Take-overs and buy-ins by historically disadvantaged people

• A signed Offer to Purchase agreement between the seller and the buyer or a signed Letter of Undertaking from the seller indicating the buyer’s preferred bidder status.
• The Offer to Purchase should be valid for at least three months and give the IDC an exclusivity period of at least two months.
• Detailed information on the partners, such as the group structure and business activities.
• An independent valuation (including underlying assumptions) of the target company.
• Details of IDC funding and the application thereof.
• Details of the contribution by the purchaser.
• A signed draft plan explaining involvement of historically disadvantaged people in operational and/or executive management.
• Proof of limited scope of due diligence performed by historically disadvantaged people on the seller’s business.
• A business plan.
• Latest audited financials, management accounts and financial projections for the target company.
• A covering letter with details of the finance required from the IDC.

Expansions by existing businesses

• Latest audited and actual financials (signed by the finance director, MD or CEO).
• Your updated business plan focusing on the proposed project/expansion.
• A detailed description of the nature of expansion, its related costs and revenues.

How to apply

Click here to apply online