Responsible Institution: Industrial Development Corporation (IDC) and Department of Trade, Industry and Competition (DTIC)
IDC/DTIC – MECP COVID-19 Programme for manufacturers of critical goods is available for companies manufacturing essential products that have become scarce due to high demand caused by COVID-19.
Funding is available for working capital and plant and equipment requirements.
What is it?
Funding can be stand-alone MCEP funding or blended with IDC
Limited to R30 million per applicant in total;
Priced at a fixed rate of 2.5% per annum;
Maximum term is 48 months, including moratorium;
The first drawdown must occur within one (1) month from approval date;
Raising and commitment fees are excluded. All other standard fees are applicable; and
Security: It is proposed that security for the facility be limited to guarantees/suretyships, cession of contracts (where possible), cession of shares etc., and that any fixed security (e.g. GNB/SNB/Mortgage bonds) only be taken where the risk is perceived as extremely high and that it is then made an undertaking rather than a CP to disbursement.
Available for working capital and plant & equipment requirements
Available to companies that have been operational for at least a year;
Companies must have a valid contract/purchase order or letter of intent;
Only applicable to manufacturers of the targeted priority products as listed below;
Companies with BBBEE Level 4 will be encouraged;
Funding provided can be stand-alone MCEP funding or blended with IDC.
Identified Priority Products:
- Medical Gloves and Accredited Masks;
- Diagnostics and Accredited test kits;
- Bulk supplies of disinfectants, sanitizers (hand and industrial) and wipes;
- Nebulisers and nebulising agents;
- Ventilators and filters;
- Disposable visors, googles, gowns and aprons;
- Packaging (bottles, caps, pumps, sachets etc.);
- Drugs proven to combat the coronavirus;
- Digital Body Thermometer;
- Powered Air purifying respirator (PAPR);
- sanitary pads, toilet and tissues paper;
- Manufacturing of hospital beds;
- Manufacturing of oxygen; and
- Related chemicals.