Kwazulu Natal

KWA-ZULU NATAL

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.

ABOUT THE REGION

What are the key industries and sectors that you support?

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.

Opportunities in the region?

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.

What is your regional strategy and focus areas?

Covid-19 Interventions

“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.

What are your top three tips for someone applying for finance?

  • We always advise clients or entrepreneurs to be transparent with us as our due diligence process will unpack any non-compliance.
  • Be realistic, remember you are projecting turnover, so you must be able to quantify revenue streams and ensure that these are achievable.
  • Have a comprehensive business plan that talks to the specifics of your business and not give us generic details.

Contact the Kwa-Zulu Natal Regional Office: kzn@idc.co.za

Pat Moodley

KwaZulu Natal Regional Manager

Durban

Suite 2101, 21st Floor
The Embassy Building
199 Anton Lembede Street
Durban

 

Tel: 031 337 4455
Fax: 031 337 4790
Email: kzn@idc.co.za

 

Pietermaritzburg

1st Floor, ABSA Building
15 Chatterton Road
Pietermaritzburg

 

Tel: 033 328 2560
Fax: 033 342 5341
Email: kzn@idc.co.za

REGIONAL FOOTPRINT

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