Supporting businesses in need

In addition, businesses have had difficulty accessing funding from traditional sources as banks tightened their credit facilities.

The IDC has a long history of stepping up to the plate in hard times and helping companies make it through and this time is no exception. When it became clear that the effects of the global economic slowdown would have a significant impact on local companies, the IDC set up a R6-billion fund to assist companies negatively affected by the recession. The main objective of the intervention is to retain jobs and maintain productive capacity in the economy.

Some R1.4-billion was distributed to 28 companies during the 2009/2010 financial year, providing a much-needed lifeline for these businesses to turn around their operations and improve their position. About 8 800 jobs are expected to be created or saved because of this intervention.

The funds provided help businesses to build capacity and create employment; provide working capital as well as operational and capital expenses, so helping the business to become competitive; ensure liquidity by providing funds not accessible through traditional channels; and reduce the amount of job losses.

To apply for assistance from the Distressed Fund, companies need to provide:

  • The latest audited financials (current and at least two years prior to profit deterioration)
  • The latest management accounts
  • An updated business plan focusing on the company's turnaround
  • A detailed description of the nature of the investment required, related costs and revenues, and
  • Evidence of development impact (such as black economic empowerment, rural and small or medium enterprise development) in addition to job creation and preservation.

Funding can take the form of debt or equity and is structured to the company's needs. Guarantee facilities are also available. The minimum funding is R1-million.

 

Advertisting

Moody’s axe likely to fall on ordinary South Africans

The ratings agency is scheduled to announce its decision on a possible downgrade of SA credit worthiness on March 27

‘We’re satisfied with SA’s land reform policy’— US Ambassador

Top US official is lobbying multinational firms to invest in South Africa

Hosni Mubarak is dead, but the Egypt he built is...

Despite the efforts of the Arab Spring, Egypt is still led by a military dictatorship made in Mubarak’s image

Inside the Security Branch: Torture between brandy and boerewors

A former SB operative, Paul Erasmus, talks about the torture of a young trade unionist, Neil Aggett, and the machinations at John Vorster Square
Advertising

Press Releases

South Africa’s education system is broken and unequal, and must be fixed without further delay

The Amnesty International report found that the South African government continues to miss its own education upgrading targets

Business travel industry generates billions

Meetings Africa is ready to take advantage of this lucrative opportunity

Conferences connect people to ideas

The World Expo and Meetings Africa are all about stimulating innovation – and income

SAB Zenzele Kabili B-BBEE share scheme

New scheme to be launched following the biggest B-BBEE FMCG payout in South Africa’s history

TFSAs are the gymnasts of the retirement savings world

The idea is to get South Africans to save, but it's best to do your research first to find out if a TFSA is really suited to your needs

Achieving the litmus test of social relevance

The HSS Awards honours scholarly works based on their social relevance and contribution to the humanities and social sciences

Making sense of tax-free savings and investment

Have you made the most of your tax-free investment contributions?

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.