Textiles and Wood Products

HOWWE FUND BUSINESSES IN THE
TEXTILES AND WOOD PRODUCTS SECTOR

Promoting Entrepreneurship Through Building Competitive Industries and Enterprises Based on Sound Business Principles.

 

The IDC’s strategic business unit (SBU) for textiles and wood offers support to various enterprises across both sectors. The textiles and wood sector focus ranges from home decor to leather goods producers to manufacturers of natural or synthetic fabrics. The wood sector focuses on the beneficiation of wood from the sawmilling process to the manufacturing of paper and packaging. The aim is to build a locally and regionally competitive industry through strategic partnerships that promote entrepreneurship and social and industrial development.

 

The unit works closely with the Clothing Textiles Competitiveness Program, a grant scheme managed on behalf of the DTIC.

 

Objectives of SBU include.

 

  • Supporting the development of a viable model for a competitive, sustainable local clothing and textiles industry.
  • To support the development of vibrant and competitive wood beneficiation and furniture industry.
  • Assist existing enterprises to expand.
  • Establish new enterprises by providing funding that creates and/or preserving jobs while driving social and economic growth.

WHAT WE FUND

Textiles

Clothing manufacturing

Natural fibre production, including wool and mohair beneficiation

Synthetic fibre production

Leather tanning; and leather product manufacturing

Footwear manufacturing

Spinning of yarns, knitting and weaving of products

Non-woven textile production

Dyeing, printing and finishing of fabrics

Household textile production

Wood

Saw milling activities

Paper and pulp manufacturing (all forms)

Paper based packaging production

Furniture production

HEAD: MARK GOLIATH

MarkG-(2)

For enquiries, email: Larry Alcock & Nicole Moonsamy Larrya@idc.co.zaNicolem@idc.co.za

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.

INVESTMENTS IN THE REST OF AFRICA

The project must be of direct benefit to South Africa in any of the following ways:

 

  • Must promote regional economic development with linkage to SA
  • Upstream / Downstream businesses within IDC value chains
  • Must develop and integrate regional value chains in line with IDC priority sectors
  • Must support the implementation efforts of the AFCFTA in order to entrench the development of regional VCs and a move away from a reliance on offshore supply chains
  • The minimum size of the total project funding requirement must be:
    • R5-million SACU-based investments
    • USD 3 million for SADC-based investments
    • USD10-million for investments in countries outside SADC
    • Rand, US Dollar and Euro-based funding are available.

HOW TO

APPLY FOR FUNDING

Application for funding should be in writing and should include an executive summary and a business plan.

STEP 1

BUSINESS PLAN

Draw up a well-researched business plan, stating a compelling case for funding

STEP 2

REGISTER ONLINE

*Applications can also be submitted at the IDC office

STEP 3

UPLOAD APPLICATION

Upload your application with the relevant documents, certificates and business plan

STEP 4

PROCESS APPLICATION

IDC will confirm that it has received your application. While processing we may ask you to supply extra information or documentation

STEP 5

APPROVAL STATUS

IDC will give you feedback on the outcome of your application, in writing. If your application is successful, due diligence will be conducted on your business.

STEP 6

LOAN CONTRACT

Once the IDC has satisfied itself of your bona fides, you will be asked to sign a loan contract

OTHER INDUSTRY SECTORS

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