|Approval Date||05 Nov 2004|
|Signature Date||26 Nov 2004|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The project involves the extension of a long term Line of Credit (LOC) of US$50million to IDC. IDC would on-lend the funds to its corporate clients and SMEs in South Africa and the Southern African sub-region. About 40% of the LOC would be used to finance cross-border industrial development projects in such sectors as manufacturing, construction, agro-business, transport, and communication, electricity, gas, water and SMEs, principally in the automotive services sector, leasing, insurance, tourism, hotels and restaurants etc. Part of the LOC would also be utilized for the expansion of the operations of existing enterprises and for acquisition of shareholdings in existing enterprises as well as enterprises scheduled for privatization over the plan period of 2004 to 2007. The project will support regional integration efforts of the South African Government in the SADC sub-region in particular, and the Continent in general.
The LOC will enable IDC to increase its development role and impact in South Africa and the SADC subregion. The loan will also facilitate the rehabilitation and expansion of the production facilities of recently privatised public companies. It would also enable Historically Disadvantaged People (HDP) to finance acquisition of stakes in existing enterprises as well as establish new ones. The LOC would enable IDC to supplement the catalytic role of the Bank in fostering the timely achievements of the objectives and goals of NEPAD.
Beneficiaries are the Historically Disadvantaged People (HDP), private sector, the South African Government and other governments in the SADC sub-region.
African Development Bank
|Last Update||21 Jan 2021|