Identifying existing and new potential industries earmarked for rapid growth in KwaZulu-Natal markets, the IDC has emphasised the textiles, clothing, and footwear industry as a key driver in the KZN economy given the ease of access to the Durban port for exports.
Other economic sectors supported by the IDC native to the region include agro-processing, chemicals, plastics, medical products; wood and furniture products; automotive and transportation; machinery and equipment; electronics, basic metals, Tourism, infrastructure, etc. as well as energy.
The IDC’s key sectors in the province include the textiles, clothing, and footwear industry, is a key driver in the KZN economy, especially because of easy access to the Durban port for exports. Other economic sectors supported in this region include Agro-processing, chemicals, plastics and medical products; wood and furniture products; automotive and transportation; machinery and equipment; electronics, Basic metals, Tourism, infrastructure, as well as energy.
With industrialisation comes development, which includes job creation and localisation. We are actively focusing on the growth and empowerment of black industrialists, and youth and women owned businesses.
Much of the investment in the province is focused on stimulating localisation, with a view to replace imports. As an example, in terms of government policy, a certain percentage of vehicle manufacturing must include using locally produced components. The IDC has assisted a number of first and second tier vehicle component manufacturers in this regard so that they can become globally competitive.
“The onset of Covid-19 negatively impacted businesses, not just locally, but on a global scale. As the IDC, we have worked with government and other DFIs in assisting businesses to recover and provide funding packages that will stimulate the economy,”
“We have a range of funds and interventions in place to address Covid-19 related funding requirements, including assisting companies that have capacity to acquire and/or manufacture products needed to treat, curtail and combat the spread of the pandemic,”. A comprehensive list of essential supplies that are eligible for funding is available from the Treasury Department.
Other interventions offered by the corporation include general distress funding, which is available to businesses, provided they have a clear turnaround strategy.
In addition to this, there is the Small Business Distressed Fund for SME’s with a trading history of more than 12 months and this fund is also available for emerging enterprises with a turnover of less than R50 million per annum (minimum loan amount of R1 million to a maximum R15 million).
“At prime less 3% this is an attractive interest rate. The important thing is that businesses need to have a very clear turnaround plan over the next 12 to 24 months and must have been in a healthy financial position before Covid-19 started. The repayment term for this loan is 60 months. “There are a sizeable number of small businesses in KwaZulu-Natal that have the opportunity to access funding at competitive rates.
KwaZulu Natal Regional Manager