Organisation: Industrial Development Corporation
Our Gro-e Youth Scheme offers financial and non-financial support to youth enterprises, with the aim of contributing towards sustainable job creation.
Of the R10-billion set aside for the Gro-e-Scheme, R1-billion has been earmarked to fund businesses owned by young people (younger than 35).
The fund provides loans at primes less 3% to businesses that operate in industries falling within our mandate and are creating new jobs.
The funding is available to South African citizens or permanent residents and the minimum amount for finance is R1 million.
- We will also assist businesses with capacity building, where needed. Businesses are encouraged to consider this support which is partially grant funding.
- Our business support programme offers non-financial support to entrepreneurs. The support is available during pre- and post-approval stages, including assistance to distressed clients.
- Start-up businesses, including funding for buildings, machinery and working capital;
- Existing businesses for expansionary purposes;
- Over 50% ownership by persons under 35 years of age;
- Businesses that demonstrate economic merit and have prospects of acceptable profitability to be able to service their obligation;
- For the duration of the funding period, businesses whose maximum cost per job does not exceed R500 000 relative to the total funding required;
- Broad-Based Black Economic Empowerment certification from an accredited verification agency, where applicable;
- Businesses operating or expanding in South Africa
- The funding period will be structured to meet the cash flow needs of the business;
- Appropriate capital and interest payment holidays will be applied depending on the financial needs of the business; and there is no prescribed minimum owner contribution.
- Businesses in the specified sectors
How the scheme works:
- Funding will be made available at prime less 3% to businesses that will create jobs.
- A minimum of R1 million with a maximum of R50 million per project will be allowed.
- The funding is available over five years or until the scheme is exhausted, whichever occurs first.
- The first draw must be within one year from approval of funding. If not, pricing reverts to normal IDC pricing.
- Reduced loan pricing will be available for five years, after which normal IDC pricing will apply.
- Finance required in excess of the scheme’s limit can be accessed through normal IDC funding.
- Pre- and post-investment support and mentorship will be provided where needed.
In line with the government’s New Growth Path and Industrial Policy Action Pan (IPAP2), businesses in the following sectors will be considered for funding:
- Renewable energy
- Energy efficiency
- Pollution mitigation
- Waste management and recycling
Agricultural value chain
- Advanced manufacturing
- Automotives, components, medium and heavy commercial vehicles manufacturing
- Clothing, textiles and footwear and leather
- Forestry, paper and pulp and furniture
- Fabrication, capital and transport equipment
- Plastics and chemical
Strategic high-impact projects
- Industrial infrastructure
- High-impact cross-sectoral projects
Mining value chain
- Downstream mineral beneficiation
- Mining technologies
Tourism and high-level services
- Business process services
Media and motion pictures
- Media pictures production
- Media value chain – broadcasting (radio and television)
- Media expansion – including new media
- Music value chain
- Film production and animation
Terms and conditions
The funding period will be structured to meet the cash flow needs of the businesses.
Appropriate capital and interest payment holidays will be applied, depending on the financial needs of the business.
The is no prescribed minimum for owner contribution. This will be determined by the financial capacity of the entrepreneur and the cash flow profile of the business.*
Offices – All 9 Provinces
Application Processing – Physical Submissio