Our sectors

How do I apply for funding?

  • A written application supported by a business plan must be submitted to the IDC. For more information the applicant can email the IDC call centre at callcentre@idc.co.za or visit one of the IDC’s offices to personally discuss the application and the process with an IDC representative. Addresses are available here.

What format should the business plan be in?

  • We have drawn up a set of guidelines that you can access here.
  • We can also forward a copy of the outline to the applicant’s e-mail address or discuss it with an applicant during a personal visit to the IDC. Should the applicant require assistance to compile a business plan, IDC can assist via the Business Support Unit.

What is the process once an application has been submitted to the IDC, and how long does it take?

  • Once the applicant understands what is required and an application has been submitted, a basic assessment of the application will be completed by an IDC analyst. During this process, the analyst will ascertain whether the application complies with IDC’s minimum requirement criteria and based on this will either recommend that the application be rejected or will recommend that a full due diligence be conducted by the Strategic Business Unit.
  • Please note that applications are given equal time and diligence, which means a waiting period is inevitable. The IDC suggests it will take at least six weeks, and perhaps longer.

Does the IDC provide grant funding? If not, what other types of financing does IDC offer - and what are the usual terms?

  • IDC funding usually takes the form of medium term loans (three to seven years) with interest charged at prime + related rates.
  • Rates are based on the risk profile of the company. Funding at preferential interest rates is available from time to time, through IDC special schemes or through financing schemes managed by the IDC on behalf of other funders.
  • Grant funding is only available as a part of business support initiatives, to assist with developing business plans or as part of a funding package.
  • The IDC also manages some of the Department of Trade and Industry’s grant schemes under the Clothing and Textiles Competitiveness Programme.

Textiles and Clothing | Projects | Clothing, Textiles, Leather & Footwear Competitiveness Scheme

We have selected two of our successful projects to highlight the partnerships the Strategic Business Unit supports.

Ascolon Trading (Pty) Ltd

Ascolon is a weaving mill in Mtwalume, KwaZulu-Natal. The company has been an IDC client since 2005 and IDC involvement has seen the company grow in employment numbers, as well as turnover, over the past few years.

The IDC assisted by providing a guarantee facility that allowed Ascolon to purchase raw material, providing a springboard for the consequent growth and viability of the business.

Ascolon Trading (Pty) Ltd

Sheraton has household textile manufacturing operations in Cape Town and Pietermaritzburg and has been an IDC client since 2008, when the IDC assisted by funding a turnaround strategy.

The IDC’s intervention has resulted in approximately 500 jobs either being saved or created.

The company exceeded expectations with regards to the turnaround and is growing from strength to strength.

Sheraton is a good example of a distressed company with a clear turnaround plan that has been successfully implemented.

Textiles and Clothing | FAQs | Clothing, Textiles, Leather & Footwear Competitiveness Scheme | Contact Us

textilesImran Textile Mills produces a range of fabrics

Our Textiles and Clothing Strategic Business Unit offers support to a variety of enterprises across the industry sector, ranging from companies who produce natural or synthetic fabrics, and create home décor, as well as those who work with leather goods or manufacture clothes.

The projects we support must promote entrepreneurship, industrial development and strategic partnerships.

We are determined to build competitive industries and enterprises in South Africa and the rest of Africa.

If you have any of the following projects, please get in touch with our Strategic Business Unit.

Our projects

  • Synthetic fibre production (production of natural fibres is the domain of our Agro-Industries Strategic Business Unit);
  • Spinning of yarns, knitting and weaving of fabrics;
  • Dyeing, printing and finishing of fabrics;
  • Non-woven textiles;
  • Household textiles;
  • Clothing manufacturing;
  • Footwear;
  • Leather tanning; and
  • Leather products.

Who should apply for finance?

We encourage existing manufacturers who wish to expand and/or modernise their production capacity; manufacturers in distress due to global economic trading conditions; and entrepreneurs who wish to start up small to medium manufacturing facilities to apply for IDC support.

We do not refinance assets.

Every business proposal is considered on its own merit, but preference is given to:

  • Financing fixed assets and the fixed portion of growth in working capital requirements;
  • Supporting projects and/or businesses that have a high developmental impact such as rural development, empowerment, job creation, township development and value addition; and
  • Supplying distress funding for troubled companies that have a clear turnaround plan.

A written application supported by a business plan must be submitted to the IDC.

Funding criteria

Our minimum investment requirements:

  • Security, the type of which will relate to your specific circumstances;
  • Compliance with international environmental standards;
  • Relevant bargaining council compliance;
  • Shareholders/owners are expected to make a material contribution, generally 35% of total assets for going concerns and 45%-50% for start-ups, depending on the industry norms and risks involved. We prefer our exposure not to exceed that of the owners of the business. However, the contribution for start-ups with a material developmental and job creation impact may be lowered, in which case the IDC may be prepared to extend finance greater than the owners contribution; and
  • In addition to the specific requirements of the Textiles and Clothing Strategic Business Unit, please check the IDC’s general requirements.

The Strategic Business Unit also offers a Clothing, Textiles, Leather & Footwear Competitiveness Scheme.

Projects | FAQsDownload the brochure

The Clothing, Textiles, Leather & Footwear Competitiveness Scheme is a preferential interest rate scheme set up to help improve the competitiveness of manufacturers in the sector.

Applicants can apply for funding for plant and equipment or supporting technology that will result in a substantial improvement in competitiveness. However, second-hand plant and equipment will only be considered if it is current state-of-the-art technology or where it forms an incidental part of a larger capital upgrade.

Plant replaced through the upgrade must be scrapped or put to alternative use to the satisfaction of IDC and may not be sold into markets where it can potentially be used to compete with the South African industry.

New (greenfield) projects that will be internationally competitive also qualify.

Working capital loans or revolving credit to fund increased working capital requirements are available. However, the increased working capital must be integral to the business and result in improving the company’s competitiveness.

Applicants must demonstrate sustainable competitiveness, with active programmes in place to achieve best practice in operational excellence.

Applicants’ projected balance sheet, including proposed IDC funding, must have an acceptable ratio of owners’ funds to total assets.

  • Minimum loan amount of R1-million; and
  • Maximum of R40-million per project.

Loans will be priced at prime minus 5% for the full period of the loan and the maximum term of the loan will be seven years for capital equipment and four years for working capital. Revolving credit will be renewed annually.

Funding is subject to the availability of remaining funds under the scheme.

Textile and Clothing | Projects | FAQs

textilesImran Textile Mills produces a range of fabrics

The IDC's strategic business unit (SBU) for clothing and textiles offers support to a variety of enterprises across the sector, ranging from creators of home décor to leather goods producers to manufacturers of natural or synthetic fabrics. The aim is to build a locally and regionally competitive industry through strategic partnerships that promote entrepreneurship and social and industrial development.

The unit also manages a Clothing, Textiles, Footwear and Leather Competitiveness Improvement Scheme. The unit works closely with the Clothing Textiles Competitiveness Program which is a grant scheme managed on behalf of the dti.

Objectives of the SBU

  • To support the development of a viable model for a competitive, sustainable local clothing and textiles industry.
  • To assist existing enterprises to expand and to assist the establishment of new enterprises through the provision of funding in order to create and/or preserve jobs and drive social and economic growth.

Doing business with the unit

Our focus is on identifying and developing strategic projects involved in one or more of the following areas:

  • Clothing manufacturing;
  • Dyeing, printing and finishing of fabrics;
  • Footwear manufacturing;
  • Household textile production;
  • Leather tanning; and leather product manufacturing;
  • Natural fibre production, including wool and mohair beneficiation;
  • Non-woven textile production;
  • Synthetic fibre production;
  • Spinning of yarns, knitting and weaving of products;

Who should apply for funding?

Existing manufacturers who wish to expand or modernise their production capacity; manufacturers in distress due to global economic trading conditions; and entrepreneurs looking to start up small to medium manufacturing facilities.

We do not refinance assets.

Every business proposal is considered on its own merits, but preference is given to:

  • Financing fixed assets and the fixed portion of growth in working capital requirements;
  • Supporting ventures/projects that have a significant socio-economic impact in terms of job creation, value addition, empowerment, rural development, and/or township development;
  • Supplying distress funding for troubled companies that have a clear turnaround plan.

Funding criteria

Our minimum investment requirements are:

  • Security, of a type related to your business's specific circumstances;
  • Compliance with international environmental standards; and
  • Relevant bargaining council compliance.

In addition, shareholders/owners are expected to make a material contribution to the project — generally 35% of total assets for going concerns and 45% – 50% for start-ups, depending on the industry norms and risks involved. We prefer our exposure not to exceed that of the owners of the business.

However, the contribution for start-ups with a material developmental and job creation impact may be lowered, in which case the IDC may be prepared to extend finance greater than the owners' contribution.

Applying for funding

We consider each application carefully. Click here to apply online.

In addition to the specific requirements of our SBU, applications must meet the IDC's minimum requirements.

Our sectors

Our strategic business units work in three distinct areas: the services sector; within the mining and manufacturing sector; and in the agro-processing and new industries environment. MORE >

Our regional support

We make an impact across the country, helping develop new business, growing existing companies, boosting local economies and providing expertise wherever needed. MORE >

Annual report

Advancing Industrial Development covers our financial and non-financial strategy and performance aspects for 2015. MORE >

Our products

We offer a wide range of products from debt equity to providing working capital and equipment finance. MORE >

Our research

Stay informed and read our award-winning research reports, as our team keep tabs on the economic trends globally, regionally and locally. MORE >

Corporate responsibility

We are playing our part in improving the quality of life of all our communities, especially in rural and underdeveloped areas. MORE >

Doing business with us

This is your one-stop-shop where you can engage with us directly via our e-services. MORE >

Domestic Medium Term Note Programme

The Industrial Development Corporation of South Africa Ltd has established a ZAR15,000,000,000 Domestic Medium Term Note Programme (as amended and updated on 17 July 2012). You can read the memorandum here. MORE >

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