Industrial Development Corporation (IDC) - Automotive and Transport Equipment

This fund provides a minimum of R1m (in the form of equity) to the manufacturer or the assembler of automotive and transport equipment to build global competitiveness. This fund can also be accessed by previously disadvantaged business people wishing to acquire an existing manufacturing or assembly business.

Businesses working in the automotive, rail, aerospace and ship industry are welcomed and manufacturers of any of the following are encouraged:

• Passenger and commercial vehicles.
  
• Medium and heavy vehicles.
  
• Buses and trucks.
  
• Automotive components.
  
• Ship-building and ship repair.
  
• Rail components and locomotives.
  
• Aerospace and aviation.
  

Preference is given to the financing of fixed assets and new or existing projects or businesses that have a significant developmental impact - in particular, rural development, empowerment, job creation, township development and value addition.

Eligibility criteria

• The application must be for a minimum of R1m funding.
  
• The business owners will be expected to provide security. The form this will take will be assessed individually.
  
• The business must be compliant with international and local environmental standards.
  
• The owners of the business must show the total own financial contribution. In general, the IDC does not like to fund more than the amount the owner is investing. They work with the following IDC funding guidelines but they are prepared to evaluate each case independently:
  
• 33% of total assets for going concerns.
• 40% for startups, depending on industry norms and risk profile.
• The project or business must be profitable and sustainable.
• Preference will be given to youth, women and black-owned enterprises.

Application process

Fill in their new enquiries form. Prior to submitting a business plan familiarise yourself with their business plan guidelines.