Information and Communication Technology

Driving a modern economy through technology

Our ICT Strategic Business Unit supports new businesses or the expansion of existing businesses whose activities rely heavily on information and communication technology – whether call centres, equipment manufacturers or service providers in a variety of fields.

We focus on providing funding and support to specific projects in the ICT sector: information technology; mining-related technologies; telecommunications; e-waste; advanced electrical and electronic manufacturing; and business process services.

Who should apply for finance?

We consider each application carefully and each project is considered on its own merit.

Projects must be sustainable and profitable, and have a proven technology and a growing customer base.

Projects that will have a significant impact on local communities are given preference: creating jobs, developing rural areas, or linking cross-border projects with South African expertise.

We are keen to grow the ICT sector by supporting local manufacturers or internet service providers, helping companies modernise or expand, boosting small and medium enterprises, and helping historically disadvantaged people gain access to the industry through Broad-based Black Economic Empowerment acquisitions.

We also support projects that create opportunities for export, and we provide trade finance.

Funding criteria

The ICT Strategic Business Unit has set its own criteria that must be met to qualify for funding. These are:

• A minimum loan amount of R1-million at a prime-linked interest rate;
• Minimum equity amount of R5-million at a minimum of 8% real after-tax internal rate of return, and 30% of upside portion;
• Rates are charged according to the project's risk-return profile;
• Some form of security is required;
• Projects that deliver products for commercial exploitation in South Africa and the rest of the world;
• The IDC's participation on a project is subject to the potential risk-return profile;
• The IDC's cash flow is to be subject to the confirmation of all third-party funding and the draw-down schedule;
• The IDC requires raising and commitment fees;
• Recoupment on a pro rata pari passu (equal footing) basis with other investors; and
• The IDC will expect to share in any rights, such as intellectual property rights, in proportion to its investment.

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

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