Tourism

Our minimum requirements:

Applicant must be a legal entity such as a Trust or company.
A reasonable financial contribution from the owners is expected – generally 40% to 50% of the total project costs. BEE applications may qualify for a reduction in owner’s contribution.
The minimum loan amount is R1 million.
Security is required and could include bonds over fixed and movable assets as well as personal surety. Fixed property to be offered needs to be owned by a legal entity and prefferably unencumbered.
Financing of takeovers of existing undertakings or facilities, or the replacement of existing sources of finance, generally falls outside the scope of the unit’s financing activities
However, takeovers or acquisitions of existing facilities may be considered for BEE applications, provided there is significant development and jobs created as a result of IDC funding.

In the case of take-overs and buy-ins by HDP partners we require:

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.
Offer to purchase should be valid for at least 3 months and give the IDC an exclusivity period of at least 2 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 by the HDPs in the operational and/or executive management.
Proof of limited scope of due diligence performed by HDPs on the seller's business.
A business plan. Click here for more information on how to write 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.

In the case of expansions by existing businesses we require:

Latest audited and actual financials (signed by the Finance Director, MD or CEO).
Your updated business plan focusing on the proposed project/expansion. Click here for more information.
A detailed description of the nature of expansion, its related costs and revenues.

In the case of small, medium and start-up businesses we require:

A comprehensive business plan.

Who to contact

For more information on the Tourism SBU, please click here to contact us, or call us on 086 069 3888 or +27 11 269 3509. Alternatively, email our call centre at callcentre@idc.co.za.