Gro-E Youth Scheme

Gro-e youth

Scheme

OBJECTIVES

To provide finance to renewable energy and energy efficiency projects of smaller scale and manufacturing of Green products in South Africa.

Qualifying Criteria

  • Available to South Africans and permanent residents up to and inclusive of the age of 35 years at the time of final approval;
  • Youth shareholding should be at least 26%;
  • Youth operational involvement in the business;
  • Applicant can be a start-up or expansion within South Africa;
  • Cost per job of up to R750 000 for the duration of funding – calculated using total project cost;
  • Applicant to meet the BBBEE requirements of the IDC – level 4 or have a plan to achieve this within 24 months; and
  • Own contribution will be determined by the financial capacity of the entrepreneur and the cash flow profile of the business.

Instruments and Pricing

  • Equity, quasi equity and loans;
  • Minimum of R1 million and Maximum of R50 million per transaction;
  • Pricing to apply as follows:
    • More than 26% Youth Owned – Prime less 2%; Equity – 6% RATIRR; and
    • More than 50% Youth Owned – Prime less 3%; Equity – 5% RATIRR.
      Discounted equity pricing only applicable for the youth equity portion
  • First draw must occur within 1 year from approval of funding by the IDC or pricing reverts to normal IDC pricing; and
  • Standard IDC fees apply.

OTHER

SCHEMES

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