Healthcare

Supporting a much-needed sector

Our Healthcare Strategic Business Unit supports both new and expansion projects in the health field, from setting up hospitals and clinics to the manufacture of medical devices and surgical equipment.

Key to such developments are good management, the creation of jobs and growth in the local economy.

It is most important to the unit that any investment support is in keeping with the government's New Growth Path and Industrial Policy Action Plan. This means preference is given to projects that grow the local economy, create jobs and are sustainable.

Emphasis is also placed on supporting new entrepreneurs entering the sector, as well as on Broad-based Black Economic Empowerment (BBBEE).

The unit provides funding and business support to a wide range of sub-sectors in the healthcare value chain:

• Manufacturing of pharmaceuticals, medicinal chemicals and botanical products;
• Manufacturing equipment, including dental supplies, medical devices and technology; medical and surgical equipment; and optical equipment;
• Setting up clinics;
• Building hospitals; and
• Supporting buy-ins or takeovers by BBBEE partners into the healthcare sector.

Who should apply for funding?

New (greenfield) and existing companies are welcome to approach the Healthcare Strategic Business Unit for support.

We take into account businesses that show economic merit in terms of profitability and sustainability and that are led by competent management, and that are equipped with in-house capacity and technological know-how.

Other aspects we take into consideration are businesses that show a significant developmental impact, such as upgrading rural or township areas, creating jobs, or adding to the quality of life of the communities where the development is proposed.

We also encourage pharmaceutical companies that demonstrate a commitment to local manufacturing and need support for trials to apply for funding.

If you wish to apply for funding, please submit a written application, with supporting documentation including a business plan.

Funding criteria

We consider each application carefully.

The Healthcare Strategic Business Unit has set its own criteria that must be met to qualify for a loan:

• The minimum loan size is R1-million;
• The minimum equity amount is R5-million;
• Security, the form and nature of which will relate to your specific circumstances;
• Compliance with international environmental standards;
• Reasonable contribution from owners:
  • 33% of total assets for going concerns; and
  • 40% for start-ups, depending on the industry norms and risk profile;
• Exposure may not exceed that of the owners of the business.

For expansion projects, the Healthcare Strategic Business Unit needs:

• Latest audited and actual financials (signed by the finance director, the managing director or the chief executive officer);
• Updated business plan focusing on the proposed project/expansion; and
• A detailed description of the nature of the expansion, its related costs and revenues.

One of the requirements is that a project is aligned with the public healthcare sector as well as with the National Health Insurance objectives.

In addition to the specific requirements of the Healthcare Strategic Business Unit, please make sure that your application meets the IDC's minimum requirements.

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