Downstream Steel Industry Competitiveness Fund (DSCIF)




To help the struggling steel industry with an interest subsidy that offers discounts to qualifying clients.

Target Sectors

  • Foundry industries;
  • Fabrication sectors – focused on pressure vessels, pipes and pipe fittings sub-sectors; structural steel and any fabrication work in support of steel intensive designated sectors/products;
  • Parts and component manufacturers of steel-intensive products;
  • Valve and pump manufacturers;
  • Machining plants;
  • Capital equipment industries particularly steel intensive rail and rolling stock components; and
  • Any other steel-intensive business.

Qualifying Criteria:

  • Applicant can be a start-up and expansion; and
  • Enterprises that create net additional employment are prioritized, particularly opportunities with greater labour intensity. Saved jobs are also be considered.

Purpose of Funding

  • Finance provided for the following:
    • Modernization of plant machinery and equipment;
    • Upgrade of plant machinery and equipment to meet quality assurance requirements;
    • Capacity expansion of existing plants;
    • Process improvements for cost efficiencies and productivity and assist with plant optimization;
    • Working capital requirements or revolving facility;
    • Assist firms to achieve appropriate industry quality certification and standards including environmental standards; and
    • Development and testing of prototypes, as well as the testing and certification of new products.

Instruments and Pricing

  • Quasi equity and loans;
  • Maximum of R75 million per transaction;
  • IDC Risk Pricing less:
    • 2% for enterprises with annual turnover up to R123.5 million; and
    • 5% for enterprises with annual turnover greater than R123.5 million
  • Maximum discount period of 5 years; and
  • Standard IDC fees apply.


  • Pilot plants
  • Integrated steel mills
  • Component manufacturers that qualifies for other incentives
  • Large multinational OEMs and assemblers and their subsidiaries that already benefit from a specific government support programme, e.g. Automotive Production and Development Programme (APDP)