| Approval Date | 27 Sep 2017 |
| Signature Date | 07 Nov 2018 |
| Sovereign / Non-Sovereign | Non Sovereign |
| Sector | Finance |
| DAC Sector Code | 24030 |
| Commitment | U.A 134,161,070.85 |
| Status | Implementation |
The project aims to provide a 12-year (including a 3 year grace period) multi-currency Line of Credit (LOC) to Industrial Development Corporation (IDC) of up to USD 100 million and R 1.3 billion for on-lending to projects in industrial infrastructure including, manufacturing, agro-business, new industries and SMEs amongst others which are also aligned with the Bank’s High 5 priorities. IDC was established in 1940 and is fully owned by the South African Government. It operates as a self-financing, independently sustainable development finance institution. This is the Bank’s third non-sovereign guaranteed facility to the institution. The LOC will also strengthen and enhance IDC’s long-term liquidity especially for dollars, and enhance its capacity to meet the demand for long-term financing needed by target sectors. The assistance comes at a critical time for IDC as it attempts to raise substantial amounts at a time SA’s (including several state-owned enterprises’) credit rating has recently been downgraded by both Fitch and S&P and when there is increased risk aversion to State Owned Enterprises. The facility will also help diversify and stabilize IDC’s funding base, reduce its funding concentration risk and hopefully crowd-in other investors.
The project supports IDC’s development projects, focusing on industrial infrastructure, agro-processing and industrial value chains in South Africa and other RMCs to promote industrialization and regional integration. This will be the Bank’s third non-sovereign guaranteed LOC to IDC.
The project will benefit IDC, SMEs and businesses owned by women and / or black people in several sectors. It will thus create jobs for women and youth and promote inclusive growth and reduce inequalities in the country.
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Funding
African Development Bank
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| IATI identifier | 46002-P-ZA-HAA-014 |
| Last Update | 02 Feb 2023 |
| private-sector@afdb.org |