IDC is supporting South Africa’s efforts to prepare for the impact COVID-19 will have on our people and economy.
The impact on the economy cuts across all economic sectors and includes:
Supply chain interruptions
Access to raw materials – cost and quality
Access to markets – perishable products lost in transit due to longer delivery periods
Working capital disruptions – longer lead times
Market loss – e.g. export markets constrained by logistics or replaced by production
Surge of imports to address the spike in demand
Under performing budgets – impact of extended downtime
Reduced Productivity – employees well being: physical and psychological
IDC COVID-19 ESSENTIAL SUPPLIES INTERVENTION
The IDC COVID-19 Essential Supplies Intervention is established to provide funding to companies for the acquisition and/or the manufacturing of essential supplies on an urgent basis to combat the Covid-19 pandemic that is facing South Africa. Essential supplies should include products on the comprehensive list published by the Treasury Department (which may be updated) and include other products that are critical to the treatment and curtailment of the spread of the disease.
· Companies that have a track record of manufacturing comparable products. In other words, that are capable of delivering on the contract in terms of capacity, resources and experience.
· In the case of imports and trade finance the lack or insufficiency of local manufacturing should be confirmed and capacity and experience to import at the required scale should be demonstrated.
· Company should be an accredited supplier (where applicable) if contract or purchase order is with government, retailers or multinationals.
· Company should demonstrate profitability as per historical financial statements
· The intention should not be profiteering - the mark-up should be reasonable.
· Contract or purchase order with either the South African government or a strong customer for essential supplies.
· In the absence of a contract or orders a corporate guarantee from a company with Investment Grade may be considered. Where a clearly demonstrable shortage of supply exists, letters of intent may be motivated.
· Geographic focus to be South Africa and SACU.
· Exports are allowed if it forms part of a bigger contract for manufacturing but an excess portion of products is exported.
FINANCIAL INSTRUMENTS AND TERMS
The following instruments are available: · Short term loan for once off- contract or import funding · Revolving Credit Facility · Guarantees to banks for banking facilities, imports, ordering requirements · Term to be limited to a maximum of 3 months for all facilities Interest rate and pricing: · IDC loan and trade finance facilities: P + 1% pa · MCEP Loan facilities 2,5% pa · Guarantees: 2% p.a.
Essential supplies should include products on the comprehensive list published by the Treasury Department (which may be updated) and include other products that are critical to the treatment and curtailment of the spread of the disease typically as per the list below:
Bulk supplies of disinfectants and sanitizers;
Packaging (bottles, caps, pumps, sachets etc);
Sanitisers (hand or industrial);
Toilet Paper, Wipes, Tissue Paper, Sanitary Pads;
Ventilators and filters;
Nebulisers and nebulising agents;
Raw materials to manufacture essential products;
Urgent regulatory and compliance testing of products or treatments if required.
INFORMATION REQUIRED The following information is required to the satisfaction of IDC: · Applicant background detailing historical and existing manufacturing and trading facilities and capabilities (summary of business model, products and why IDC should fund them – commercial merits) · Letter of standing from the bank (and all other financiers) · Bank statements for the last 12 months · Confirmation and copies of all other financing facilities · FICA documentation and PEP status · Tax clearance certificate · CV’s of Management · Financial statements (annual audited or reviewed and interim management accounts not older than 2 months). · Analysis of stock, debtors and creditors · Budgets including the contract
Please feel free to contact us if you need support to apply for this fund, please click here to contact us.