the dti

The Department of Trade and Industry (the dti) promotes structural transformation creating a dynamic industrial and globally competitive economy. It broadens participation in the economy to strengthen economic development and continually aims to respond effectively to the needs of South Africa’s economic citizens. MORE>>

The IDC

The Industrial Development Corporation (IDC) is the national development finance institution promoting economic growth and industrial development. The organisation’s primary objectives are to contribute to the creation of balanced, sustainable economic growth in South Africa and the rest of Africa. MORE>>

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MCEP on hold

New applications for MCEP have been temporarily suspended with immediate effect due to the large number of applications.
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Industrial financing loan facilities


This component comprises two sub-components: a pre- and post-dispatch working capital facility, and an industrial policy niche projects fund.

Pre- and post-dispatch working capital facility

Finance is offered to manufacturers at a preferential interest rate, with the aim of improving the competitiveness of an entity by lowering the cost of finance.

Pre-dispatch finance covers working capital requirements from receipt of an order to dispatch to customers. It can include production, raw material, and packaging and transportation costs.

The post-dispatch finance covers working capital requirements from the date of dispatch of the goods to the date the seller realises the proceeds of the sale. It can include performance bonds and performance guarantees.

The programme offers a working capital facility of up to R50m at a fixed interest rate of 4 percent.

Applicants who need more than this amount may qualify for IDC financing, based on the corporation's normal risk assessment policies. The finance is available for a term of up to four years and may be revolving.

The applicant must be in possession of a confirmed contract or purchasing order.

Industrial policy niche projects fund

Projects that focus on new areas with the potential for job creation, as identified by the dti and the IDC, may be eligible for an MCEP grant structured as part of the borrower's equity contribution.