Pretoria – A R10 billion scheme, aimed at facilitating job creation, will provide funding at a rate of prime less three percent to job creating businesses, the Industrial Development Corporation (IDC) said on Tuesday.
Addressing media following a board meeting, IDC CEO Geoffrey Qhena said the IDC was now focusing on realigning with the New Growth Path, which was announced last November.
“It can’t be business as usual,” said Qhena of the funding that will be available to job creation projects. It will be available as of 1 March 2011.
The R10 billion fund was announced by President Jacob Zuma during the State of the Nation Address earlier this month. Furthermore, Finance Minister Pravin Gordhan is expected to shed more light on the specifics of the fund in the 2011 Budget Speech tomorrow.
“This will be across all IDC mandated sectors to businesses which demonstrate economic merit and efficnecy in new job creation,” Qhena explained, saying that the scheme is set to run over a five-year period.
On repayment of funding granted to businesses, the state-owned development institution would be more accommodative, particularly for businesses that are starting out and the drawdown period within a year of approval.
“We want to ensure that people have access to this facility and that it caters for the requirements of a business,” said Qhena.
Existing businesses as well as new start-ups qualify for the funding.
“We want to encourage entrepreneurs,” he said, adding that the IDC wants help in the creation of new industries.
In addition to the R10 billion, R750 million has been set aside by the IDC to assist businesses that were affected by the recent floods and draught. Of this money, R500 million will go to assist businesses that fall within the mandate of the IDC at prime less three percent.
Applications for this fund will start on 1 March and end on 31 March 2012.
“The remaining R250 million will be loaned to the Land Bank to assist those affected agricultural businesses that fall outside the IDC’s mandate,” said the CEO. – BuaNews
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