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Jowell Tobias

Regional Office: Northern Cape

February 2014IDC - Corporate profileEstablished:October 1940Corporate type:Development finance institution, mandated by ActObjectives:Increased industrial capacityActivities:Provide risk capital to viable businesses in various sectorsRegional mandate:South Africa & the rest of Africa (since 1998)Shareholding:Government of South Africa = 100% shareholderReporting:SA Ministry of Economic DevelopmentFunding:100% self-financingGovernance:Follows normal company policy and proceduresPartnerships, Professionalism & Passion

IDC Head Office, Sandton, SARole of IDCs Regional OfficeStrategy for regional developmentProactively identify and support investment opportunitiesImprove IDCs efficiency & accessibilityConvenience (district visits)Personal attentionPackage applications to conform to IDC normsInvolve other stakeholders e.g. Landbank, NEF, DBSA, DoA, Water AffairsBusiness SupportRepresent all IDC sectors

IDC Regional Office, KimberleySectoral focusCultural industries: Craft and filmGreen and energy saving industriesBio fuelsThe green economyMetals fabrication, capital and transport equipmentAutomotives, components, medium and heavy commercial vehiclesPlastics and chemicalsClothing, textiles, footwear, leatherForestry, paper & pulp, furnitureAdvanced manufacturingManufacturing activitiesAgro-processingAgricultural value chainThe mining value chainDownstream mineral beneficiationTourismBusiness process servicesTourism and high-level servicesNew Growth PathIPAPLegend:The knowledge economyPharmaceuti-calsICTHealthcareMining related technologiesBiotechnologyMiningInfrastructureIndustrial infrastructure

Logistics4Strategic 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 LogisticsSpecial IDC SchemesGro-E SchemeR10 billion available for 5 yearsLoans @ Prime - 3% for the first 5 yearsEquity @ 5% RATIRRCapital and interest payment holidays as per financial needs of the businessMinimum = R3 million & Maximum of R1 billion per projectBusiness must have prospects of acceptable profitability to service its obligationsCost per job created should not exceed R500 000B-BBEE certification from an accredited verification agency is requiredR2 billion unsecured 5-year listed private placement bondCost 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 impactMaximum = R100mOnly senior debt instrumentsClient is expected to drawdown within 7 months after approvalWomen 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 CreationFundTransformation and Entrepreneurial Scheme (TES)R6,1bn made available for companies negatively affected by the recent international financial crisisDistressed FundingGro-E Youth schemeEarmarked 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.

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%.

Business SupportTechnical assistance (TA) for IDC clients;Outsourced Consultants, Mentors, Coaches legal experts provide TA;Training courses delivered through IDC Learning & Development (External) Dept.;Training offered to investee members of the Board of Directors / Trustees, Management Team, middle management, supervisors & staff destined for promotionFunding 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.

Appraisal & approval processEnquiry&ApplicationInitial ScreeningBasic AssessmentApprovalDue DiligenceTerm SheetLegal AgreementsDisbursementsPost Investment Management/ Business SupportGreen 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 AfricaLoans ranging from R1 million to R50 millionAt a concessionary rate of prime less 2%Repayments of up to 15 years, depending on the energy efficiency or renewable energy technologyStandard IDC fees, credit policies and procedures applyLoans available in ZAR

Industrial Development Corporation13 Bishops Avenue, KimberleyPO Box 808, KImberley 8300South AfricaTelephone (053) 807 1050Facsimile (053) 832 7395E-mail kimberley@idc.co.za

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