Industrial Development Corporation
The Industrial Development Corporation(IDC) is a true supporter of youth-empowered businesses. Through its specialised youth-specific products, such as the Gro-E Youth Scheme and the Youth Pipeline Development Programme, the IDC partners with young entrepreneurs across South Africa to help their businesses succeed.
The Gro-E Youth scheme was introduced following the signing of the Youth Employment Accord in 2013.
In the last five years, the IDC approved just over R4.7 billion towards youth-empowered businesses, creating and saving 7 314 jobs in the process. Encouragingly, the heavy manufacturing sector, which includes the production of lime, cement, stone, glass, rubber and paper products, was by far the leading sector in which youth were funded.
The Scheme is aimed at both start-up as well as existing businesses looking at expansion. To qualify for the scheme, applicants need to meet the following criteria:
- Be under 36 years of age;
- Have ownership of over 25% of the business;
- Cost per job should not exceed R800 000 relative to total funding required; and
- BBBEE level 4 certification.
The IDC funds from R1 million to R 1 billion, but the Gro-E Youth Scheme has slightly different specifications aimed at supporting youth particularly . With financing from as low as prime minus 3% for qualifying enterprises seeking between R1 million and R50 million, along with pre- and post-investment business support and mentorship, this is one of the best offers on the market to support youth entrepreneurs.
Additional business support is offered through the Youth Pipeline Development Programme, which assists youth applications become investment ready; help them with meeting and satisfying conditions precedent and ensuring the business’ long-term sustainability. With all this on offer, budding youth entrepreneurs are set for success by partnering with the IDC.
For youth seeking to finance businesses which require more than R50 million, they can still access the IDC’s normal funding to cover the excess beyond the Gro-E Youth Scheme’s limit.
Visit www.idc.co.za to see if you qualify for the Gro-E Youth Scheme, which offers finance of up to prime minus 3% for youth-empowered businesses needing a minimum of R1 million in financing.
Partnering with youth to build tomorrow. The Industrial Development Corporation, your partner in development finance, Ts & Cs apply.