| Approval Date | 19 May 2010 |
| Signature Date | 26 May 2011 |
| Sovereign / Non-Sovereign | Non Sovereign |
| Sector | Finance |
| DAC Sector Code | 24030 |
| Commitment | U.A 145,636,723.76 |
| Status | Implementation |
The project is a USD 200 million LoC to provide long-term funding to the Industrial Development Corporation of South Africa (IDC) to finance projects outside of South Africa. The line of credit is in line with the South African Government's strategy to promote the industrial sector in particular, and to assume economic development in general. IDC will use the proceeds of the LoC to on-lend to projects in its current lending pipeline or new projects that may arise in the near future. IDC’s role as a financier of development projects across Africa is growing and is an integral part of its strategy. Typically, IDC will provide loans on a long-term basis, particularly in the case of infrastructure, often with an initial grace period and priced with a project-specific, risk-based lending margin over the reference index (i.e., LIBOR or EURIBOR). The pipeline of projects to be supported by the LoC is composed exclusively of projects in low income countries (LICs) and fragile states. This LoC will not be used for loans to small-and medium-sized enterprises (SMEs). Although the Bank’s previous LoCs provided funds for SME finance, IDC’s SME activity is concentrated in South Africa and also funded in ZAR.
The LoC is designed to support IDC’s strategy to develop its financing activities outside South Africa. It will be used to finance long-term projects in the areas of infrastructure, agriculture or other development sectors in low-income and fragile countries. The ultimate goal of these projects will be to build productive capacity and accelerate growth on the continent.
The LoC will target small and medium-sized industrial enterprises whose assets do not exceed R 120 million in total (approximately UA 14 million), and individual loans total R $ 65 million (around UA 7 million). Operations cover the entire industrial sector, including manufacturing companies (large and small), agro-industries, mining and energy, chemicals, textiles, the wood and paper industry, metal base and tourism.
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Funding
African Development Bank
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| IATI identifier | 46002-P-ZA-HA0-003 |
| Last Update | 09 Aug 2020 |
| private-sector@afdb.org |