Essential Supplies Fund
THE IDC SET ASIDE R800 MILLION TO SUPPORT COMPANIES PROVIDING ESSENTIAL SUPPLIES
The fund aims to give financial support to companies providing essential supplies to address the COVID-19 Pandemic. This fund includes R 300 million from the Department of Trade, Industry and Competition’s Manufacturing Competitiveness Enhancement Programme (MCEP)
The IDC Covid-19 Essential Supplies Intervention is designed to provide funding to companies that have capacity to acquire and/ or manufacture products needed to treat, curtail and combat the spread of the Covid-19 pandemic.
WHO MAY APPLY FOR THE COVID-19 ESSENTIAL SUPPLIES FUND?
You have a track record of manufacturing similar products
- In the case of imports, you are able to import at the required scale (and there is insufficient local manufacturing capacity)
- You are an accredited supplier (in either the public or private sector)
- You have a contract or purchase order with either the South African government or a similar large customer for essential supplies
- You can demonstrate historical profitability
- Your mark-up is reasonable to prevent profiteering and price-gouging, and
- Your geographic focus area is South Africa and the Southern African Customs Union
ESSENTIAL MEDICAL SUPPLIES INCLUDE:
Bulk supplies of disinfectants and sanitisers
Accredited masks
Accredited test kits
Medical gloves
Sanitizer units (hand or industrial)
Packaging (bottles, bottle caps, pumps, sachets)
Cleaning materials
Chemicals
Approved drugs
Ventilators and filters
Nebulisers and nebulising agents
Toilet paper, wipes, tissue paper, sanitary pads
Hospital beds
Oxygen tanks and products
Aprons
Safety visors
Urgent regulatory and compliance testing of products or treatments
Raw materials to manufacture essential products
THE FOLLOWING FINANCIAL INSTRUMENTS ARE AVAILABLE:
- Short-term loan for once-off contract or import funding
- Revolving credit facility
- Guarantees to banks for banking facilities, imports and ordering requirements
EXCLUSIONS
- Financing for normal expansions
- Refinancing of existing facilities
- Share buy-backs
- Payment of non-operational expenditure
TERMS OF FACILITY
- IDC loan and trade finance facilities: P+1% p.a.
- MCEP loan facilities: 2.5% p.a.
- Guarantees: 2% p.a.
HOW TO APPLY
Email covid@idc.co.za.