Eastern Cape Development Corporation (ECDC) - EQUItrader Equity Finance

The ECDC gives preference to funding businesses that make a meaningful developmental impact on the Eastern Cape economy. ECDC Future is the category name for their long-term debt finance vehicles.  

EQUItrader - Equity Finance provides equity financing mainly for the manufacturing and retail sectors. The EQUItrader provides finance for equity deals (especially BEE buy-ins and buy-outs) through capital investment into client businesses. The duration of the equity investment is between five and seven years. The interest rate is prime to prime + 5% and the maximum loan size is R10 million.

Applicants will only be considered for loan finance if they have a clean credit record or provide ECDC with written proof of arrangements made to clear any bad debt attributable to them. They must also be able to show clear financial viability.

Eligibility criteria

Preference is given to businesses that clearly show the type of economic impact they will have on the Eastern Cape.  

In particular, at least one, but preferably more of the points below need to be covered:

• Creating new jobs or saving existing ones.
  
• Bringing empowerment to the previously disempowered.
  
• Adding real value to the economy.
  
• Generating export income.
  
• Facilitating township and rural development.
  
• The business must either be located in the Eastern Cape or have its head office in the Eastern Cape.
• Business owners must be actively involved in the business enterprise, in the form of full-time participation in the activities of the business. 

Application process

Contact the regional office closest to you.