Page 74 - KZN Top Busines Portfolio 2020/21

INDUSTRIAL DEVELOPMENT CORPORATION
(IDC)

Pat Moodley
www.idc.co.za

STIMULATING INDUSTRY IN products; automotive and transportation; machinery
and equipment; electronics, basic metals, tourism,
KWAZULU-NATAL
infrastructure, as well as energy.“With industrialisation
“This year the Industrial Development Corporation comes development, which includes job creation
(IDC) celebrates 80 years of existence in its role as and localisation. An additional element which we
a Development Funding Institution (DFI) , providing actively focus on is the growth and empowerment
funding for manufacturing. We have come a long of black industrialists, and youth and women owned
way in aiding the development of the South African businesses,” explained Moodley.
economy during this time and have also assisted many Much of the investment in the province is focused on
companies in expanding and trading into the African stimulating localisation, with a view to replace imports.
continent,” says IDC’s KwaZulu-Natal (KZN) Regional As an example, in terms of government policy, a
Manager, Pat Moodley. certain percentage of vehicle manufacturing must
The IDC’s key sectors in the province include the include using locally produced components. The IDC
textiles, clothing, and footwear industry, which has assisted a number of first and second tier vehicle
Moodley says is a key driver in the KZN economy, component manufacturers in this regard so that they
especially because of easy access to the Durban can become globally competitive.
port for exports. Other economic sectors supported Covid-19 interventions
in this region include agro-processing, chemicals,
plastics and medical products; wood and furniture “The onset of Covid-19 negatively impacted business-
es, not just locally, but on a global scale. As the IDC,
we have worked with government and other DFIs in
assisting businesses to recover and provide funding
packages that will stimulate the economy,” says
Moodley. “We have a range of funds and interventions
in place to address Covid-19 related funding
requirements, including assisting companies that have
capacity to acquire and/or manufacture products
needed to treat, curtail and combat the spread of
the pandemic,” says Moodley. A comprehensive list
of essential supplies that are eligible for funding is
available from the Treasury Department.
Other interventions offered by the corporation
include general distress funding, which is available
to businesses, provided they have a clear turnaround
strategy. In addition to this, there is the Small Business
Distressed Fund for SMEs with a trading history of
more than 12 months and this fund is also available for
emerging enterprises with a turnover of less than R50
million per annum (minimum loan amount of R1 million
to a maximum R15 million).
“At prime less 3% this is an attractive interest rate. The
important thing is that businesses need to have a very

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