IDC Agro-Processing & Agriculture Funding : Industrial Development Corporation
Organisation : Industrial Development Corporation (IDC)
Facility Name : Apply For Agro-Processing & Agriculture Funding
Country : South Africa
Website : https://www.idc.co.za/agro-processing-agriculture/
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What is IDC Agro-Processing & Agriculture Funding?
One of the objectives of the Agro-processing and Agriculture Strategic Business Unit (SBU) is to invest in the development of projects and businesses that either create new or expand local manufacturing capacity – which often results in the creation of new jobs as well as replacing imports, facilitating increased exports, and enhancing competitiveness. This is done by, amongst other things, reducing production costs by introducing new technologies, increasing efficiencies, and promoting a value chain approach.
Related / Similar Facility : IDC Automotive & Transport Equipment Funding
What We Fund:
The IDC Agro-processing and Agriculture Strategic Business Unit (SBU) funds processing in the following sub-sectors of the agriculture value chain:
** Horticulture including fruit, vegetables, nuts, tea and coffee
** Field Crops Processing
** Animal Protein, including red/white meat, aquaculture, poultry etc.
** Forestry
The SBU can also consider backward integration into primary agriculture, where this forms part of the business and adds to the business’s competitiveness. The SBU can also consider projects and transactions where land has been transferred back to communities and other broad-based groups to set up viable projects on such land.
Who Can Apply For IDC Agro-Processing & Agriculture Funding?
We encourage new or existing companies within the agro-processing and agriculture sector that plan to create new or expand industrial capacity within the economy to apply. We can also consider the funding of expansionary BBBEE acquisitions in the sector where the majority of the acquisition funds remain within the target company for expansionary purposes (usually through an issue of shares).
How To Apply For IDC Agro-Processing & Agriculture 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
Step 7 : Begin Funding
Apply Here : https://protected.idc.co.za/clientportal
FAQ On IDC Agro-Processing & Agriculture Funding
Frequently Asked Questions FAQ On IDC Agro-Processing & Agriculture Funding
How do we fund businesses in the agro-processing and agriculture industry?
The funding application should preferably facilitate the creation of new industrial capacity, save and/or create new jobs. Risk-sharing from operating private-sector investment partners is non-negotiable and the shareholders will often have to guarantee the funding of shortfalls
How do we structure funding?
** Start-up businesses: IDC’s preferable maximum funding equates to 60% of the total funding requirement (for start-ups).
** Expansion projects: IDC can fund a full expansion if the equity structure at peak is a minimum of 35%.
** Preferred equity structure for start-up projects of at least 50% at peak.
** Actual final funding structuring and splits are finalised during our due diligence.
** BBBEE conditionality: We expect all business partners to have at least a level 4 accredited BBBEE rating or that they provide the IDC with an undertaking to achieve such rating within a specific time period. BEE empowered, women and youth-owned businesses are encouraged to apply. Value-chain based projects are preferable.