The Industrial Development Corporation (IDC) is a national development finance institution with a mission to provide funding opportunities for businesses with the capability to grow the economy and create jobs. In particular, it funds black-owned and empowered companies, black industrialists, women, and youth-owned and empowered enterprises.
An example of the kinds of companies they invest in is Domestly, an on-demand home cleaning startup creating hundreds of employment opportunities for cleaners. With investment from the IDC in 2017 the company was able to improve its product offering thereby increasing employment in the sector.
IDC funding priority sectors
The IDC offers funding to qualifying entrepreneurs in the following priority sectors:
- Green industries (renewable energy, energy efficiency and waste management and recycling)
- Agricultural value-chain
- Manufacturing activities (clothing, textiles, pharmaceuticals, plastics and chemicals)
- Strategic high-impact projects (logistics industrial infrastructure, mining value-chain, tourism and high-level services, media and motion pictures, knowledge economy – ICT, and biotechnology)
Below is a list of IDC funding opportunities for entrepreneurs who meet their requirements:
COVID-19 Funds
The COVID-19 Essential Supplies Fun, together with the COVID-19 Small Industrial Finance Distressed Fund, helps to address the COVID-19 pandemic.
Unrest Business Recovery Fund
Provides funding support for businesses and communities affected by the 2021 unrest. The considered response comprises a recovery package totalling over R1.5 billion
Flood relief
Funds to businesses whose operations have been affected by the floods following an announcement of the National State of Disaster declared on 18 April 2022. The fund is open to other provinces and areas that need relief.
Green Energy Efficiency Fund (GEEF)
Non-industry-specific funding for entrepreneurs and businesses that want to invest in energy efficiency and renewable energy technologies in energy-intensive sectors including manufacturing, mining and agro-processing.
Agro-processing and Agriculture Strategic Business Unit (SBU)
The IDC business unit provides support to a wide range of economically viable activities in agro-processing (food and non-food) sectors. Specifically, the unit supports the following sub-sectors – maize, wheat and sugar, livestock such as cattle, poultry, pigs and game, beverages, forestry and horticulture including fruit, vegetables, nuts, tea and coffee.
Technology Venture Capital Fund
Supports tech-focused businesses by providing access to equity or debt funding.
Infrastructure Strategic Business Unit (SBU)
Supports businesses focused on infrastructure development within the following sectors mining, agro-processing, chemicals, and other industries that contribute to the South African economy’s industrial development.
Media & Audio-Visual Strategic Business Unit (SBU)
Supports projects producing locally relevant and internationally relevant content, with an emphasis on feature films, animation and TV series.
Tourism & Services Strategic Business Unit (SBU)
Invests in the accommodation sub-sector, focusing on business hotels in fast-growing areas.
Mining and Metals Strategic Business Unit (SBU)
Supports the development of a globally competitive mining and beneficiation industry and the metals value chain (steel, aluminium value chains).
Automotive and Transport Equipment Fund
Provides a minimum of R1 million (in the form of equity) to vehicle manufacturers and qualifying investment in productive assets by component manufacturers and tooling companies.
IDC’s Strategic Business Unit (SBU) for Clothing and Textiles
Support for businesses in the clothing and textiles sectors, including leather goods producers and manufacturers of natural or synthetic fabrics.
Chemical Products and Pharmaceuticals Fund
Provides finance to stimulate the growth of the manufacturing sector (for chemical, plastics and pharmaceutical products).
Machinery and Equipment Fund
Offers minimum equity investment of R10 million to businesses involved in the manufacture of machinery and capital. Additionally, it supports innovations and advancements in electronics and robotics and reduces reliance on imported equipment.
Youth Pipeline Development Program
A part of the IDC Special Scheme business support and grant funding programme. Assists potential applicants to improve the readiness of their proposal, and thereby increase their probability for IDC consideration.
