Fact sheet about the IDC

When was the IDC established?

In 1940.

Who owns the IDC?

We are a state-owned, self-financing development finance institution. The South African Government is our sole shareholder.

What are the IDC’s objectives?

To contribute to the economic empowerment of all the people living in Africa and promote their prosperity
To develop economies that are viable, sustainable and environmentally and socially responsible
To create employment
To develop new entrepreneurs
To develop small and medium enterprises (SMEs)
To drive regional development with an emphasis on rural areas, underdeveloped provinces and previous townships
To accelerate broad-based black economic empowerment (BEE)
To further the aims of Asgisa and Nepad.

What is the mandate of the IDC?

We are mandated to:

Facilitate, promote and assist in the financing of new industries and industrial undertakings.
Facilitate, promote and assist in the establishment/expansion/modernisation of operations in existing industries or related projects in South Africa and across the rest of the continent.
Promote the economic empowerment of historically disadvantaged communities/individuals.
Promote the development of small and medium enterprises / co-operatives.
Promote employment-creating activities, particularly in underdeveloped areas.
Encourage the establishment and growth of new technology-based organisations.
Enhance corporate governance in order to promote business excellence.
Consider investment proposals in large beneficiation projects in order to secure the viability of mid and downstream manufacturing activities.
Develop and appraise large investment projects and secure co-investment from foreign partners.
Promote viable investment projects in spatial development initiatives and industrial development zones.
Support South African exporters and importers of capital goods and services by providing extended credit facilities.

How do I get in touch with the IDC?

Contact our call centre at 086 069 3888 or email us at callcentre@idc.co.za

How long will it take for my application to be approved?

The IDC conducts thorough due diligence to evaluate all proposals/projects. It is therefore important that you submit a complete and a detailed business plan to expedite the process.

How can I access IDC tenders?

Our tenders are published in the following newspapers:

Regional press: The Star and the Sowetan
National press: The Sunday Times and City Press

Click here for more information on tenders

Why does the IDC fund projects across Africa when there is so much need in South Africa?

We support the objectives and ideals of Nepad (New Partnership for Africa’s Development). Nepad is committed to the sustainable and economic development of the entire continent. So are we. Interestingly enough, many of our activities help South African companies as much as they help businessmen north of the Limpopo.
For example, we facilitate the export of South African goods and services to the continent. We also help South African companies enter the immense pan-African market.

Is there a monitoring system after one has received funding?

Yes. Each applicant has to submit audited financial statements on a quarterly basis. We monitor the performance of a company through its repayment record (loans) or dividends (equity).

Does the IDC require collateral or security before it funds a business?

This depends on the economic merit or nature and risk of the business.

How and where do I submit my application form/business plan?

You can submit an application by post or by hand to the IDC offices in Sandton, Cape Town, Durban or East London or you can email it to callcentre@idc.co.za

Does the IDC take equity in one’s business?

Yes, but this normally applies to large projects with the exception of IDC Warehousing undertaken for BEE companies.

What interest rates do the IDC charge?/Are IDC interest rates lower than that of banks?

As our mandate is based on socio-economic transformation we usually participate in deals with greater risk profiles than banks do. We also price this risk profile at a far lower rate than banks do because an assessment of development returns is part of the our decision-making process.

What differentiates the IDC from a bank?

We are a Development Finance Institution (DFI) and as such we operate as an industrial development agency, which promotes the country’s industrial and economic growth through our funding activities. A commercial bank accepts deposits and makes loans to the general public.

Can I get a bursary from the IDC?

Yes, if you are a South African citizen residing in the Republic of South Africa and qualify for admission to a university or technikon or have already passed one or more years at a university or technikon and are not currently receiving a bursary or financial aid from your employer.

Technikon or university students who have already successfully completed one or more years will be considered on their most recent academic results.

Bursaries are ONLY awarded to people studying subjects directly related to the industry. These subjects are:

Engineering: industrial, chemical, electrical, electronic, mechanical, civil and analytical chemistry (technikon level leading to BTech).
Applied commercial sciences: BCom (accountancy or information systems), information technology and computer science.

Does the IDC have internship programmes for graduates?

Yes. We are recognised by the South African Institute of Chartered Accountants (SAICA) as an Approved Training Organisation (ATO) for accountants via the Training Outside Practice Programme (TOPP). The objective of TOPP is to increase the number of chartered accountants from historically disadvantaged sectors of the population.
A prerequisite to enter this programme is the completion of a Certificate in the Theory of Accounting (CTA).