What is the IDC/DTIC –MECP COVID-19 Programme for Manufacturers of Critical Goods?

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Published: April 17, 2020

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.

 

Eligibility Criteria:

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.

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