OVERVIEW
Development finance and SMME support The IDC has assets of R144-billion at its disposal.
A Seda client adds the finishing touches. The Automotive Aftermarket Support Programme covers panel-beaters, motor mechanics, auto spares and auto fitment. Credit: Seda
T
he Industrial Development Corporation (IDC) disbursed R6.3-billion in the year to 31 March 2021. The group has assets of R144-billion and is a major funder and funding partner in the South African business landscape. The group’s annual financial results claimed that a total of 13 354 jobs were expected to be “created, saved and sustained”. The IDC created a R2.5-billion Covid Distress Fund to assist partners and businesses which were hit by the pandemic. In addition, deferments were implemented, which allowed 75 of the corporation’s partners relief to the value of R778-million in a range of sectors from agro-processing to mining. In terms of the IDC’s transformation agenda, the following amounts were committed: • Black Industrialists, R3-billion • black-empowered companies, R3.2-billion • women ownership above 25%, R2-billion • youth ownership above 25%, R1-billion. The Covid-19 lockdown had a severe impact on small businesses. A survey conducted by risk finance company Business Partners Limited found that 95% of SMME respondents thought they would not survive without help. During lockdown, Business Partners regional general manager Jeremy Lang issued a statement regarding financing options for SOUTH AFRICAN BUSINESS 2022
76
SECTOR INSIGHT The North West Provincial Government is investing in digital infrastructure. small businesses. “We implore SMEs who might be tempted to throw in the towel to reconsider their financing options,” he said in February 2021. Lang made the point that a wider range of financing options is available than many people might know about. He listed “grants, riskfree and risk-based finance where either grants, debt or equity investments are made available”. Lang also noted the relief programmes specifically designed to help SMMEs weather the Covid-19 storm. The company’s own packages
