Jowell Tobias Regional Office: Northern Cape February 2014

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<ul><li> Slide 1 </li> <li> Jowell Tobias Regional Office: Northern Cape February 2014 </li> <li> Slide 2 </li> <li> IDC - Corporate profile Established: October 1940 Corporate type: Development finance institution, mandated by Act Objectives: Increased industrial capacity Activities: Provide risk capital to viable businesses in various sectors Regional mandate: South Africa &amp; the rest of Africa (since 1998) Shareholding: Government of South Africa = 100% shareholder Reporting: SA Ministry of Economic Development Funding: 100% self-financing Governance: Follows normal company policy and procedures Partnerships, Professionalism &amp; Passion IDC Head Office, Sandton, SA </li> <li> Slide 3 </li> <li> Role of IDCs Regional Office Strategy for regional development Proactively identify and support investment opportunities Improve IDCs efficiency &amp; accessibility Convenience (district visits) Personal attention Package applications to conform to IDC norms Involve other stakeholders e.g. Landbank, NEF, DBSA, DoA, Water Affairs Business Support Represent all IDC sectors IDC Regional Office, Kimberley </li> <li> Slide 4 </li> <li> Sectoral focus Cultural industries: Craft and film Green and energy saving industries Bio fuels Metals fabrication, capital and transport equipment Automotives, components, medium and heavy commercial vehicles Plastics and chemicals Clothing, textiles, footwear, leather Forestry, paper &amp; pulp, furniture Advanced manufacturing Agro- processing Downstream mineral beneficiation Tourism Business process services New Growth Path IPAP Legend: Pharmaceuti- cals ICT Healthcare Mining related technologies Biotechnology Mining Industrial infrastructure Logistics 4 </li> <li> Slide 5 </li> <li> Strategic Business Units Agro Industries Forestry and Wood Products Metal, Transport and Machinery Mining and Minerals Beneficiation Textiles and Clothing Chemicals and Allied Industries Tourism Media and Motion Pictures Information and Communications Technology Venture Capital Healthcare Green Industries Strategic High Impact Projects and Logistics </li> <li> Slide 6 </li> <li> Special IDC Schemes Gro-E Scheme Gro-E Scheme R10 billion available for 5 years Loans @ Prime - 3% for the first 5 years Equity @ 5% RATIRR Capital and interest payment holidays as per financial needs of the business Minimum = R3 million &amp; Maximum of R1 billion per project Business must have prospects of acceptable profitability to service its obligations Cost per job created should not exceed R500 000 B-BBEE certification from an accredited verification agency is required R10 billion available for 5 years Loans @ Prime - 3% for the first 5 years Equity @ 5% RATIRR Capital and interest payment holidays as per financial needs of the business Minimum = R3 million &amp; Maximum of R1 billion per project Business must have prospects of acceptable profitability to service its obligations Cost per job created should not exceed R500 000 B-BBEE certification from an accredited verification agency is required R2 billion unsecured 5-year listed private placement bond Cost per job of up to 450,000 will be eligible Pricing @ approximately 6.0% - 10.0% fixed; Extent of discount is based on the risk and developmental impact Maximum = R100m Only senior debt instruments Client is expected to drawdown within 7 months after approval R2 billion unsecured 5-year listed private placement bond Cost per job of up to 450,000 will be eligible Pricing @ approximately 6.0% - 10.0% fixed; Extent of discount is based on the risk and developmental impact Maximum = R100m Only senior debt instruments Client is expected to drawdown within 7 months after approval Women Entrepreneurial Fund (R400 million) People with Disabilities Fund (R50 million) Development Fund (R250 million) Equity Contribution Fund (R150 million) Community Fund (R150 million) Women Entrepreneurial Fund (R400 million) People with Disabilities Fund (R50 million) Development Fund (R250 million) Equity Contribution Fund (R150 million) Community Fund (R150 million) UIF Job Creation Fund UIF Job Creation Fund Transformation and Entrepreneurial Scheme (TES) R6,1bn made available for companies negatively affected by the recent international financial crisis Distressed Funding </li> <li> Slide 7 </li> <li> Gro-E Youth scheme Earmarked R1 billion of the Gro-E scheme to businesses owned by young people (age less than 35); Loans at prime less 3% to businesses; Industries falling within IDCs mandate; Are creating new jobs; Available to South African citizens; Minimum amount for finance is R1 million; Experienced entrepreneurs to join with the youth in establishing businesses to ensure that these new entrepreneurs are coached and mentored. </li> <li> Slide 8 </li> <li> Gro-E Youth scheme (cont.) Criteria and terms of the scheme: Start-up businesses; Existing businesses for expansionary purposes; Businesses that demonstrate economic merit; For the duration of the funding period; Maximum cost per job does not exceed R500 000; Broad-based Black Economic Empowerment certification, where applicable; Businesses operating or expanding in South Africa; Funding period will be structured to meet the cash flow needs of the business; Appropriate capital and interest payment holidays will be applied; There is no prescribed minimum for owner contribution; Shareholding by youth of more than 50%. </li> <li> Slide 9 </li> <li> Business Support Technical assistance (TA) for IDC clients; Outsourced Consultants, Mentors, Coaches legal experts provide TA; Training courses delivered through IDC Learning &amp; Development (External) Dept.; Training offered to investee members of the Board of Directors / Trustees, Management Team, middle management, supervisors &amp; staff destined for promotion Funding principle: Cost sharing between IDC and Client The norm is: 50% Grant funding and 50% Client own contribution; Client own contribution: business cash flow OR a low interest or zero rated loan. </li> <li> Slide 10 </li> <li> Appraisal &amp; approval process Enquiry&amp; Application Initial Screening Basic Assessment ApprovalDue DiligenceTerm Sheet Legal Agreements Disbursements Post Investment Management/ Business Support </li> <li> Slide 11 </li> <li> Green Energy Efficiency Fund (GEEF) Programme supported by German Development Bank (KfW) To support and promote energy efficiency and renewable energy investments R500 million facility for energy efficiency and small scale renewable energy projects Conditions: Financially viable energy efficiency projects Private sector companies registered and operating in South Africa Loans ranging from R1 million to R50 million At a concessionary rate of prime less 2% Repayments of up to 15 years, depending on the energy efficiency or renewable energy technology Standard IDC fees, credit policies and procedures apply Loans available in ZAR </li> <li> Slide 12 </li> <li> Industrial Development Corporation 13 Bishops Avenue, Kimberley PO Box 808, KImberley 8300 South Africa Telephone (053) 807 1050 Facsimile (053) 832 7395 E-mail kimberley@idc.co.za Thank you </li> </ul>

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