Industrial Development Corporation Women in Oil and Energy Department of Energy Business Opportunities in the Energy Sector DRAFT 17 September 2015
About the IDC Established in 1940 National Development Finance Institution Main Business area: Providing finance for entrepreneurs and projects that are contributing to industrialisation and job creation Owned by the South African government 2 2
Regional presence Mahikeng Regional Office Vryburg Satellite Office Rustenburg Regional Office Klerksdorp Satellite Office Brits Regional Office Limpopo Free State Regional offices are fully fledged operational offices that form part of the IDC s deal origination process; Satellite offices do not have permanent staff and are manned at specific times by employees from the regional office. These offices are generally shared with other DFIs or agencies; Access to IDC funding has been improved by allowing on-line applications and an on-line tool to assist businesses to develop business plans. IDC has offices in all provinces; 3 3
IDC focus areas Black industrialist Control Strategic leadership Operational leadership R23 billion 25% plus owned R1 Billion Youth owned IDC focus Job creation Jobs created Jobs saved R10 billion Government procurement Inputs into infrastructure Localisation Women owned 25% plus owned R400 million (equity) 4 4
IDC s sectoral focus- R102 bn over 5 years Green and energy saving industries Bio fuels Logistics Industrial infrastructure Healthcare ICT Mining related technologies Biotechnology R11.1 billion Agroprocessing R7.7 billion R22.4 billion Cultural industries: Craft and film R14.8 billion Metals fabrication, capital and transport equipment Clothing, textiles, footwear, leather Pharmaceuticals Automotives, components, medium and heavy commercial vehicles Advanced manufacturing Forestry, paper & pulp, furniture Plastics and chemicals Mining Downstream mineral beneficiation R20.8 billion R22.1 billion Business process services Legend: IPAP New Growth Path Tourism Areas not specifically part of NGP or IPAP2 5 5
Funding products and criteria PRODUCTS CRITERIA KSF s Debt Economic Merit Quality Research Equity Own contribution Business Plan Quasi-equity Guarantees No refinancing BEE R1 mil R1 bil Management Market Passion Trade Finance Security Acquisition finance Start-up and existing Business Support 6 6
Funding schemes The IDC plays a crucial role in growing the economy, creating jobs, empowering women, youth and people with disabilities 7 7
Gro-E Scheme Max cost per job of R500 000 Operating / expanding in SA BBBEE certification Loans at prime 3% Up to 5 years 8 8
Women Entrepreneurial Fund Minimum Shareholding 50% Nett Asset base of less than R15m Operationally Involved Loans and Equity Maximum R30 million Up to 5 years Total Asset base: R80 million Start-ups and Expansions 9 9
IDC in Energy Sector (Green Industries) 2014 Accumulative to 2014 since 2011 (4 years) R mil R mil Renewable Energy 1243.9 14 114 Energy Efficiency 25.7 442 Fuel Based Energy 497.4 1 684 TOTAL 1 767 17 640 10 10
Highlights in the North West Province Provincial Highlights A good story to tell Current funds invested is R7,2 billion In the last 4 years North West approvals amounted to R4,9 billion to 38 companies facilitating the creation of 24 998 direct jobs E.g. Mining, Agriculture, Manufacturing and Tourism Contributed in the drafting of the NW Provincial Renewable Energy Strategy with DEDECT CSI Initiatives - Nguni Cattle Project and Whole School Development Programme 11
Green Industries - Renewable Energy Investment Rustmo1 Solar Farm (Pty) Ltd (Momentous Energy) MOMENTUS ENERGY Description 8.9 MW (7.1MW delivered to the grid) Fixed panels thin film Photovoltaic (PV) technology farm in Rustenburg, near Marikana IDC investment R156m exposure IDC role Assistance with feasibility studies and round 1 bid preparation Development outcomes 18 permanent jobs. The first Solar Farm in the country that was connected to the grid, situated in Rustenburg, North West Province 12 12
How to apply Make an enquiry Submit your business plan Contact your nearest regional office Mahikeng: 018 397 9942 Online IDC Direct Call Centre 0860 693 888 Call Centre 0860 693 888 Email callcentre@idc.co.za Email callcentre@idc.co.za 13 13
DRAFT Thank you