Manufacturing Competitiveness Enhancement Programme (MCEP)
Manufacturing Competitiveness
Working Capital Facility
OBJECTIVES
To assist manufacturing companies with working capital.
Plant & Equipment Facility
OBJECTIVES
To provide finance to Black Industrialists for the acquisition of plant and equipment.
Qualifying Criteria (Working Capital Facility)
- Only available for working capital requirements;
- Start-ups only considered for Black Industrialists’ businesses;
- Only applicable to manufacturers under Standard Industrial Classification Code 3;
- Applicant may not contemplate workforce reductions during the term of the facility;
- Applicant required to achieve BBBEE Level 4 within 24 months;
- MCEP funds are blended at a leverage level of at least 20% funding from IDC; and
- Pre and post Business Development provided at a maximum of R3 million per applicant.
Instruments and Pricing (Working Capital Facility)
- Limited to R50 million per applicant;
- Priced at a fixed rate of 4%;
- Maximum term is 48 months, including moratorium;
- First drawdown must occur within 6 months from approval date; and
- No fees apply.
Qualifying Criteria (Plant & Equipment Facility)
- Only applicable to Black Industrialists’ businesses;
- Only available for plant and equipment requirements;
- Applicable to start–up businesses, expansions and expansionary acquisitions;
- Applicant may not contemplate workforce reductions during the term of the facility;
- Only applicable to manufacturers under Standard Industrial Classification Code 3;
- Applicant will be required to achieve BBBEE Level 4 within 24 months;
- MCEP funds are blended at a leverage level of at least 20% funding from IDC; and
- Pre and post Business Development will be provided at a maximum of R3 million per applicant
Instruments and Pricing (Plant & Equipment Facility)
- Limited to R50 million per applicant;
- Priced at a fixed rate of 4%;
- Maximum term is 84 months, including moratorium;
- First drawdown must occur within 12 months from approval date; and
- No fees apply.