Fund Name

Working Capital Facility

Agency

IDC

Type

Loans & Equity

Sector

Manufacturing

Summary

The Working Capital Facility forms part of the IDC’s Manufacturing Competitiveness Enhancement Programme (MCEP) Main Fund. Its primary objective is to assist manufacturing companies with working capital needs by offering concessionary loan financing at below-market rates.

The facility is available to both start-up and existing manufacturing businesses that operate under Standard Industrial Classification (SIC) Code 3, which includes sectors such as Agro-Processing, Automotive, and Clothing & Textiles.

Funding is limited to working capital requirements related to production costs only, and direct salaries and wages are excluded from eligible uses. Applicants must not be planning any workforce reductions during the term of the facility.

The MCEP funds are blended at a leverage level of at least 20% funding from the IDC, meaning the facility is structured as a blended finance instrument. A fixed interest rate of 2.5% applies, with a maximum loan term of 48 months (including moratorium), and the first drawdown must occur within 6 months of approval.

In addition to the loan, pre- and post-Business Development support is available at a maximum of R3 million per applicant to help businesses build capacity and improve competitiveness.

Who this is for?

  • Manufacturing companies (SIC Code 3) including Agro-Processing, Automotive, and Clothing & Textiles
  • Start-up businesses in the manufacturing sector
  • Existing manufacturing businesses seeking to expand
  • Applicants who can achieve at least BBBEE Level 4 within 24 months
  • Businesses that do not plan to reduce their workforce during the term of the facility

What support/funding you can get

  • Maximum amount: R30 million per applicant (total funding limit across all MCEP sub-funds)
  • Interest rate: Fixed rate of 2.5% per annum
  • Maximum term: 48 months, including moratorium
  • First drawdown: Must occur within 6 months from approval date
  • Fees: Raising and commitment fees are excluded; all other standard IDC fees are applicable
  • Business Development support: Up to R3 million per applicant (pre- and post-disbursement)
  • Blending requirement: MCEP funds blended at a leverage level of at least 20% from IDC

What you can use it for?

The Working Capital Facility may only be used for working capital requirements directly related to production costs. The following are explicitly excluded:

  • Direct salaries and wages

Eligible production-related working capital costs include inputs, materials, and other operating costs associated with the manufacturing process.

Key requirements and conditions

  • Available for working capital requirements only relating to production costs, excluding direct salaries and wages
  • Available to start-ups and expansion-stage businesses
  • Applicant must be a manufacturer classified under SIC Code 3, including Agro-Processing, Automotive, and Clothing & Textiles
  • Applicant may not contemplate workforce reductions during the term of the facility
  • Applicant must achieve at least BBBEE Level 4 within 24 months of approval
  • MCEP funds are blended at a leverage level of at least 20% funding from IDC
  • No specific black ownership requirement for this facility (the 51% black ownership requirement applies to the Plant & Equipment Facility only)

How the application works

Applications for the MCEP Working Capital Facility are submitted directly to the IDC. The general IDC application process applies:

  1. Review the facility criteria and confirm eligibility
  2. Prepare a business plan and supporting financial documents in accordance with the IDC Business Plan Guidelines
  3. Submit an application through the IDC’s contact channels or via the IDC website
  4. IDC assesses the application, including financial viability, BBBEE status, and sector classification
  5. Upon approval, first drawdown must occur within 6 months from the approval date

For enquiries and to initiate an application, contact the IDC via the IDC Contact Us page.

What to prepare before you start

  • Business plan prepared in accordance with IDC Business Plan Guidelines
  • Financial statements (audited where available) or management accounts
  • Proof of SIC Code 3 classification (manufacturing sector)
  • Details of working capital requirements and production cost breakdown
  • BBBEE certificate or plan to achieve BBBEE Level 4 within 24 months
  • Workforce and employment information (confirmation of no planned reductions)
  • Details of IDC co-funding or leverage arrangement (at least 20% from IDC)
  • Company registration documents

Am I a fit for this particular fund?

You are likely a fit if:

  • You operate in the manufacturing sector under SIC Code 3 (including Agro-Processing, Automotive, Clothing & Textiles)
  • You are a start-up or an established manufacturer looking to expand
  • You need working capital specifically for production costs
  • You do not intend to reduce your workforce during the loan term
  • You are able to achieve BBBEE Level 4 within 24 months
  • You are comfortable with a blended finance structure (at least 20% IDC funding)
  • Your working capital needs are R30 million or less in total across all MCEP sub-funds

You are unlikely to be a fit if:

  • Your business is not in the manufacturing sector (SIC Code 3)
  • You need funding for direct salaries and wages only
  • You are planning to reduce your workforce during the facility term
  • You cannot commit to achieving BBBEE Level 4 within 24 months
  • Your funding requirement exceeds R30 million across all MCEP sub-funds
  • You need a longer repayment term than 48 months

Quick facts

Overview

  • Agency: Industrial Development Corporation (IDC)
  • Programme: Manufacturing Competitiveness Enhancement Programme (MCEP)
  • Product name MCEP – Working Capital Facility
  • What this is: Concessionary loan facility providing working capital to manufacturing companies at a fixed below-market interest rate
  • Geographic scope: National (South Africa)

Who this is for

  • Eligible applicant type: Manufacturing companies (start-ups and expansions) classified under SIC Code 3
  • Sector focus: Manufacturing
  • Included sectors: Agro-Processing, Automotive, Clothing and Textiles, and other SIC Code 3 manufacturers
  • Business stage: Start-up and expansion (existing manufacturers)

Type of support

  • Is financial support provided: Yes
  • Support form: Loan (concessionary fixed-rate debt financing)

Funding parameters

  • Purpose of funding To provide working capital to manufacturing companies to support production costs
  • Eligible costs: Working capital requirements related to production costs (materials, inputs, and operating production costs)
  • Ineligible costs: Direct salaries and wages; capital expenditure (plant and equipment are covered under the separate Plant & Equipment Facility)
  • Maximum funding amount: R30 million per applicant (total across all MCEP sub-funds)
  • Pricing: Fixed interest rate of 2.5% per annum
  • Maximum term: 48 months including moratorium
  • First drawdown condition: First drawdown must occur within 6 months from approval date
  • Fees: Raising and commitment fees excluded; all other standard IDC fees applicable

What the support can be used for

  • Eligible use of support: Production-related working capital costs
  • Ineligible use of support: Direct salaries and wages; non-production costs

Funding structure

MCEP funds blended at a leverage level of at least 20% funding from IDC

Business support

  • Support provided: Loan financing up to R30 million; pre- and post-Business Development support up to R3 million
  • Business support cap: R3 million per applicant

Information you will need to provide

Business plan, financial statements, SIC Code 3 classification evidence, BBBEE certificate or plan, workforce information, production cost breakdown

Key requirements and conditions

None specified

How it works

  • Application route: Direct application to IDC
  • Assessment focus: Financial viability, manufacturing sector classification (SIC Code 3), BBBEE status and trajectory, workforce commitment, production cost justification

Contact and routing

Contact Us

Additional information

Business Development support of up to R3 million per applicant is available pre- and post-disbursement. Applicant must not reduce workforce during the term. BBBEE Level 4 must be achieved within 24 months of approval.

Contact and routing

For enquiries and applications, contact the IDC directly:

Application Considerations:

What You Need to Prepare Before Applying

Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.

Core documents (required for almost all funds)

  • Company registration documents
  • Ownership and shareholder information
  • Business plan or project description
  • Recent financial statements or management accounts
  • Project budget and cost breakdown

Project‑specific documents (depending on the fund)

  • Quotes for equipment, infrastructure, or services
  • Feasibility study or technical proposal (where required)
  • Energy solution proposal (for energy‑related funds)
  • Export contracts or buyer information (for export and insurance products)
  • Job creation plan (where applicable)
  • Turnaround or recovery plan (for distress funding)

Additional requirements

  • Proof of sector compliance or permits (where relevant)
  • Evidence of co‑funding or financing approvals (for grants and blended funding)
  • Any templates or declarations specified by the administering agency

What Happens After You Apply

  1. Completeness check – your submission is reviewed to ensure all required documents are included.
  2. Eligibility assessment – the agency confirms that you meet the fund’s basic criteria.
  3. Technical and financial review – your project and financials are evaluated.
  4. Decision and contracting – approved applications proceed to contracting and implementation.

Timelines vary by fund and depend heavily on the quality and completeness of your application.

Important Notes for Applicants

  • Approval is not guaranteed, even if all requirements are met.
  • Funding terms may be subject to final agency approval and conditions.
  • Submitting accurate and complete information is critical.
  • Misrepresentation or incomplete information can result in delays or rejection.

Interested in this fund or have some questions?

Online Enquiry

Direct Enquiry

General Enquiry

Email Address:
siyabongam@idc.co.za

Contact Number:
0860 693 888

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