generalheader
Project Update      IDC access - December 2008

Business focus

Moving SMEs to the transport sector

The IDC looks to support and grow the transport sector in South Africa through a number of strategic approaches and industry-focused service offerings. Two of its Strategic Business Units (SBUs) are geared towards assisting SMEs in the various aspects of the transport sector.

The Transport, Financial Services and Other SBU focuses on proactively identifying and developing market opportunities that result in the promotion of entrepreneurship, facilitation of transport links and access to financial services in the following areas:

  • Transport services (road freight, logistics, maritime, aviation and bus sector).
  • Financial services (retail banking acquisitions and commercial micro-finance).
  • Other (security services, listed retail acquisitions and catering services).

For those SMEs looking to secure finance for their transport sector projects, the IDC's Transport, Financial Services and Other SBU considers each proposal on its particular merit. Preference is given to emerging or established entrepreneurs wishing to raise finance for a minimum loan of R1 million, or a minimum of R500 000.00 for bridging facilities for specific contracts, or a minimum of R5 million for equity related transactions. Applicants must be able to demonstrate economic viability of the proposed transaction. Whilst each business proposal is considered on economic viability and sustainability in the above sectors, preference will be given to projects or transactions which comply with the following requirements:

  • Projects and transactions which have a significant developmental impact e.g. rural development, empowerment, job creation, value addition and export generation;
  • Buy-ins or take-overs by historically disadvantaged persons (HDPs);
  • Projects and transactions which promote and facilitate intra African economic trade through the provision of air, road and sea links; and
  • Transactions which address a prevailing market gap or failure in the above sectors in an economically viable manner.

For more information on the Transportation SBU, call 086 069 3888 or email  This email address is being protected from spambots. You need JavaScript enabled to view it.

The primary focus of the Metal, Transport and Machinery SBU is to develop and support viable downstream producers within the South African metals, transport and machinery sectors. It operates in the following focus areas:

  • Basic iron, steel and non-ferrous fabricated metal products.
  • Plant, machinery and equipment.
  • Motor vehicles, components and accessories.
  • Diverse transport products such as boats, planes and trains.

For those SMEs looking to secure finance for their transport sector projects, the IDC's Metal, Transport and Machinery SBU considers each proposal on its particular merit. Preference is given to financing fixed assets and the fixed portion of growth in working capital requirements; and projects/businesses which have a significant developmental impact e.g. rural development, empowerment, job creation, township development and value addition.


Disclaimer