!Khi Solar One

Once completed, this concentrated solar tower power station will be one of the largest in the world. One of the benefits of this project relative to most other renewable energy projects is its ability to store energy and to deliver electricity to the grid during peak times.

Satisfying customers

Development funds

Development funds

The Development Funds Department (DFD) provides funding support to projects that have a high development impact. It achieves this by managing higher risk-ranking funds and disbursing these funds into deserving projects.

DFD manages IDC ring-fenced and third party funds which are allocated to development needs not typically addressed through the standard IDC funding mechanism. The funding schemes support the aims of the New Growth Path set out by the Economic Development Department, employment creation and equity.

Funding methods

The capital is deployed against strict investment guidelines towards addressing a specified, targeted developmental need. A variety of tools such as softer pricing, structuring terms and relaxation of financial and other norms are used to meet the objectives of the scheme. The capital may be off-balance sheet or on-balance sheet funds. Many of the investment funds under management, being fairly new funds that will not reach maturity in the short term, are difficult to assess for financial sustainability. The funds provide varying degrees of non-financial support through funding shop-floor training and upskilling, mentorship and coaching at employee and management level. This promotes empowerment and sustainable industrial capacity.

Fund Purpose Fund size Financial  
approved since
inception of
Fund until
31 March 2013  
1   Unemployment Insurance Fund 1   Assist companies that save or create jobs at a cost per job of less than or equal to R450 000 per job   R4bn Loan R3.25bn
2   Gro-E 1   Assist companies that create jobs at a cost per job of less than or equal to R500 000 per job   R10bn Loan/equity R3.5bn
3   Women Entrepreneurial Fund 1   Assist female entrepreneurs to start or expand their businesses   R300m Loan/equity R67m
4   People With Disability Fund 1   Assist entrepreneurs with disabilities to start or expand their businesses or to acquire businesses   R50m Loan/equity R11m
5   Development Fund 1   Assist workers to acquire meaningful stakes in IDC-funded transactions   R350m Equity/quasi R199m
6   Community Fund 1   Assist marginalised poor communities to acquire meaningful stakes in IDC-funded transactions   R150m Equity/quasi R82m
7   Equity Contribution Fund 1   Assist new entrant black entrepreneurs with their equity contributions with regards to IDC-funding requirements   R150m Equity/quasi R85m
8   Risk Capital Facility 2   Assist with equity type funding to BEE-SMEs that creates jobs   R841m Equity/quasi R692m
9   Support Programme for Industrial Innovation 2   Fund the development of new technologies for the SA economy           
   9.1 Product Process Development (PPD) 2         Grant R138m
   9.2 Matching Scheme (MS) 2         Grant R688m
   9.3 Partnership Scheme (PII) 2         Conditional grant (royalty payment if project successful) R251m
10   Technology Venture Capital 2   Commercialisation of innovative products, processes and technologies   R130m Loan/equity/quasi-equity R25m
11   Manufacturing Competitveness Enhancement Programme 2            
   11.1 Manufacturing Competitiveness Enhancement Programme – Working Capital Fund 2 Assist manufacturers under SIC 3 to access more affordable working capital facilities   R765m Loan R216m  
   11.2 Manufacturing Competitiveness Enhancement Programme – Niche Fund 2 Stimulate new or underdeveloped manufacturing sectors   R200m Loan/equity R8m  
12   Green Energy Efficiency Fund 1 Stimulate energy efficiency and renewable energy investments in the commercial and industrial sectors   R500m Loan R174m  
13   Pro-Forestry Scheme 1 Support new afforestation and transformation   R200m Loan/equity R79m  
14   Agro-Processing Linkages Scheme 1 Agro-processing and rural development by linking established agro-processors with resource poor farmers   R100m Loan/equity R50m  
15   Agro-Processing Competitiveness Fund 3 Facilitate increased competition, growth and development in agro-processing sector; through provision of finance to non-dominant players   R250m Loan/equity R207m  
16   Clothing, Textiles, Leather and Footwear Scheme 1   Fund local players to upgrade their P/E to become globally competitive   R500m Loan R350m  
17   Clothing and Textiles Competitiveness Programme 2 Improve the competitiveness of the local Clothing and Textiles sector           
   17.1 Clothing and Textiles Competitiveness Improvement Programme 2 Improve product, processes and people on a cluster basis   R522m Grant R366m  
   17.2 Production Incentive Programme 2 Funding provided to individual companies for plant and equipment upgrade   R3.25bn Grant R1.75bn  
1 IDC on-balance sheet
2 IDC off-balance sheet (funds managed on behalf of the dti)
3 IDC off-balance sheet (funds managed on behalf of EDD)

Coega Dairy Holdings

The IDC has identified increased competition in the dairy value chain and import substitution in the cheese industry as key sector development goals. We also singled out the need for increased farmer (and specifically B-BBEE) participation in dairy value-adding initiatives.

Windtown Lagoon Resort 

The newly built Windtown Lagoon Resort and Spa reflects the IDC’s focus to funding community-based projects that have potential to create employment opportunities in far-flung regions.

R13.1 billion
R16.0 billion
18 922
3 950
© The IDC 2013. All rights not expressly allowed are reserved. P.O. Box 784055, Sandton, 2146, South Africa