The Industrial Development Corporation (IDC) is a government arm that provides funding for the development of industrial sectors in South Africa. As the largest state-owned funding institution, the IDC plays a critical role in the expansion of our local industries.
For small to medium-sized enterprises (SMEs), the IDC can unlock opportunities which can help them scale quickly and make them more competitive. This not only grows SMEs but also betters the economy and creates jobs.
In this article, we answer some of the most pressing frequently asked questions (FAQs) about the IDC.
How Does the IDC Work?
The IDC is a fully owned government funding agency. The organisation aims to maximise development impact, contribute to an inclusive economy and provide funding to black-owned enterprises.
Who Should Apply for Funding From the IDC?
Anyone whose business is in the manufacturing sector can apply for funding from the IDC. If your company is looking for funding for a new project, expansion or to modernise your production capacity.
Additionally, the IDC has a strong focus on providing funding for disadvantaged individuals such as women, youth and people with disabilities.
How Long Does Application Approval Take At the IDC?
Typically, the IDC takes between three to five months to approve applications. However, application approval is based on the funding you are applying for. Once you have submitted your application, you can contact the IDC on 0800 303 336 or callcentre@idc.co.za to enquire about your application.
Which Sectors Does the IDC Not Provide Funding To?
The IDC does not provide financing to businesses in the following industries:
- Gambling.
- Property development (including residential, office and commercial).
- Golf courses.
- Acquisition of game.
- Student or long-term rental accommodation.
- Stand-alone tour operators or travel agents.
What Is the IDC Application Process?
When applying to the IDC, you need to follow these steps:
- Submit a written request for your funding. Including a funding request letter.
- Attach an executive summary and a comprehensive business plan.
- Check that you meet all the requirements of the funding you need.
- Submit your application to the IDC.
What Are the Minimum Requirements I Need to Meet for IDC Funding?
To meet the funding requirements, you will need the following:
- You need to have a new business or an existing one.
- Your business must be registered with the Companies and Intellectual Property Commission (CIPC).
- Your business must be able to employ others (create jobs).
- You will need to attach a complete business plan.
- Your business must showcase that it is profitable and sustainable.
- There must be a reasonable financial contribution from the owner(s)/shareholder(s)/sponsor(s).
- Any security may include bonds over fixed and moveable business assets and personal surety and corporate guarantees.
- You must comply with all South African business statutory requirements.
- You must comply with international environmental standards.
Which Business Sectors Does the IDC Support?
The IDC provides funding for businesses in the following sectors:
- Agro-processing and agriculture.
- Automotive and transport equipment.
- Chemicals, medical and industrial mineral products.
- Energy sector.
- Infrastructure sector.
- Machinery, equipment and electronics.
- Media and audio-visual.
- Mining and metals.
- Textiles and wood products.
- Tourism and services.
Which Funding Options Does the IDC Have?
There are a number of funding opportunities that the IDC has. The funding solutions are divided into four categories, namely:
- Industry sector funding.
- Tailored funding products.
- Crisis funding.
- Energy funding.
Within these categories, you will also get the different funding solutions.
Does the IDC Support Unregistered Businesses?
Yes, the IDC will consider your application even if your business is unregistered. The organisation will make sure that your small to medium-sized enterprise (SME) operates within the law.
Can Organisations Collaborate With Each Other to Qualify for Funding?
Yes, you can partner with another entity to better your chances of qualifying for funding.
What Is the Maximum Amount of Funding I Can Get From the IDC?
The IDC provides a minimum funding of R 1 million and a maximum of R 1 billion. The organisation funds start-ups and existing enterprises.
Now that you know what the IDC is, who it funds and how the funding works, you can apply. Don’t wait too long, apply for funding today and get your business the capital it needs to succeed.
For actionable business advice, visit SME Advice to speak to one of our experts.
