Project & Infrastructure Funding. Funding Database Prepared for KZNDEDT

Transcription

1 Project & Infrastructure Database Prepared for KZNDEDT 28 September 2011

2 Contents NATIONAL TREASURY & GOVERNMENT DEPARTMENTS DEPT PAGE Automotive Investment Scheme DTI 4 Black Business Supplier Development Programme 6 Business Process Services Incentive (BPS Incentive) DTI 8 Capital Projects Feasibility Programme CPFP DTI 10 Critical Infrastructure Programme DTI 12 Employment Creation Fund DTI 14 The Manufacturing Investment Programme (MIP) DTI 15 Support Programme for Industrial Innovation (SPII) DTI 17 Sector Specific Assistance Scheme (SSAS) Exports DTI 19 Tourism Support Programme(TSP) DTI 21 Co-operative Investment Scheme (CIS) DTI 24 Seda Technology Programme (STP) DTI 28 Neighbourhood Development Partnership Grant (NDPG) NT 30 Contractor Incubator Programme PW 32 Municipal Infrastructure Grant COGTA 33 National Skills Fund H ED 35 STATE-OWNED ENTERPRISES Central Energy Fund SOE 38 Energy and Environment Partnership Grant 39 Development Bank of South Africa Energy and Environment Partnership Grant DBSA 39 Jobs Fund DBSA 41 Renewable Energy Market Transformation.(REMT) DBSA 45 National Lottery Distribution Trust Fund 46 Isibaya Fund PIC 47 Industrial Development Corporation Africa Strategic Business Unit IDC 50 Agro-Industries IDC 51 Agro-Industries Flood Relief Scheme IDC 53 Chemicals and Allied Industries IDC 54 Community Fund IDC 56 Development Fund for Workers IDC 58 Equity Contribution Fund IDC 60 Forestry and Wood Products IDC 62 Green Industries IDC 63 Gro-E- Scheme IDC 64 Healthcare IDC 66 Media and Motion pictures IDC 68 Metal transport and machinery products IDC 70 Mining and Minerals Beneficiation IDC 72 People with Disabilities Fund IDC 74 Risk Capital Facility Programme IDC 76 Strategic High Impact Projects and Logistics IDC 78 Support Programme for Industrial Innovation IDC 80 Textiles and clothing IDC 82 Tourism IDC 84 Transformation and Entrepreneurship Scheme IDC 86 Venture Capital IDC 87 Women Entrepreneurial Fund IDC 89 DEVELOPMENT FINANCE INSTITUTIONS Ithala Development Finance Corp 1

3 Ithala Business Finance IDF 91 KZN Growth Fund Trust IDF 93 Khula Enterprise Finance Ltd Anglo-Khula Mining Fund KEF 94 Enablis Acceleration Fund KEF 95 Identity Development Fund (IDF) KEF 97 Small Growth Trust Fund 98 Enablis Khula Loan Fund 99 Khula-Akwandze Fund (KAF) 100 Land Reform Empowerment Facility (LREF) 102 Izibulo SME Fund 104 Gijima KZN Local Competitiveness Fund (LCF) 106 National Empowerment Fund Acquisition Finance(under the Corporate Fund) NEF 108 Expansion Capital NEF 110 Franchise finance NEF 111 Entrepreneurship Finance NEF 113 Procurement Finance NEF 115 Project finance NEF 116 Rural and Community Development NEF 118 Special Projects Fund NEF 120 Umnotho Fund NEF 121 The Land Bank Long- term Mortgages 122 Special Mortgage Loan 124 National Housing Finance Corporation Home Ownership NHFC 125 Rural Housing Loan Fund RHLF 127 Incremental Housing NHFC 129 LOCAL & INTERNATIONAL INFRASTRUCTURE FUNDS Future Growth Asset Management Agri-Fund 131 Futuregrowth Development Equity 133 Old Mutual African Infrastructure Investment Fund 2 OM 134 The Infrastructural, Developmental & Environmental Assets Managed Fund (IDEAS) OM 136 Inspired Evolution Investment Management Evolution One 138 Future Growth Asset Management International Housing Solutions Fund 140 Vantage Capital Investment 142 FMO Infrastructure Development Finance FMO 144 Risk Sharing Facility FMO 146 African Development Bank Group AfDB 148 China Construction Bank 149 China Investment Corporation CIC 150 CitiBank 152 PROPARCO 153 Donor Funds United States Agency for International Development (USAID) USAID 155 Department for International Development DFID 157 2

4 Australian Agency for International Development (AusAID) AUSAID 158 Canadian International Development Agency (CIDA) CIDA 159 Swedish International Development Authority (SIDA) SIDA 160 Swiss Agency for Development and Cooperation (SDC) SDC 161 Multilateral Finance Institutions African Development Bank (AfDF) AfDB 162 Development Bank of South Africa DBSA 163 East African Development Bank 164 International Finance Corporation IFC 165 PRIVATE EQUITY AND VENTURE CAPITAL Separate schedule done DTI Trade, Export and Investment Financial Assistance DTI 166 Production Incentive (PI) DTI 168 Section 12i Tax Allowance Incentive DTI 170 3

5 Entity: : Date (if closedend): Persons Interviewed: Details Application Department of Trade and Industry (DTI) Automotive Investment Scheme (AIS) Mkhululi Mlota ( Chief Director: Automotives) Tel: +27 (11) Fax: +27 (86) aisappsq@thedti.gov.za Customer Contact Centre: The DTI Campus 77 Meintjies Street Sunnyside Pretoria Programme Manager: Automotive Investment Scheme The Enterprise Organisation Department of Trade and Industry Private Bag X84 Pretoria The AIS was designed to grow and develop the automotive sector, through investment in new and/or replacement models and components, with the intention of increasing plant production volumes, sustaining employment, and strengthening the automotive value chain. The AIS provides for a taxable cash grant of 20% of the value of qualifying investment in productive assets, as approved by the DTI, to be disbursed over a three-year period. An additional taxable cash grant of 5 or 10%, which may be available to projects that are deemed by the DTI to be 'strategic' in nature. Additional taxable cash- 5% of the value of qualifying investment in productive assets may be available to projects that meet the requirements as stated in the AIS Guidelines. Eligible applicants include: light motor vehicles or automotive component manufacturers; registered legal entities in South Africa, in terms of the Companies Act, 1973 (as amended) or the Close Corporations Act, 1984 (as amended), which undertake manufacturing in South Africa; and taxpayers in good standing, who are able to provide a valid tax clearance certificate before the AIS grant is disbursed. Light Motor Vehicle Manufacturers: 4

6 These manufacturers should have achieved or demonstrate that they will achieve a minimum of annual units of production per plant, within a three-year period. Website Projects submitted by us: Component Manufacturers or Deemed Component Manufacturers: These manufacturers should prove that a contract is in place and/or a contract has been awarded and/or a letter of intent has been received for the manufacture of components to supply into the light motor vehicle manufacturer supply chain, locally and/or internationally. These manufacturers should be able to prove that after the investment has been concluded, at least 25% of the total entity turnover or R10m annually would have been achieved by the end of the first full year of commercial production, as part of the light motor vehicle manufacturer supply chain, locally and/or internationally. ( also links to application forms) 5

7 Entity: : Date (if closed-end): Persons Interviewed: Details Application Department of Trade & Industry (DTI) Black Business Supplier Development Programme (BBSDP) Max of R1 million per project R for tools, machinery and equipment on a 50:50 cost-sharing basis R for business development and training interventions on an 80:20 cost sharing basis. N/A Alan Torley Alan Torley Tel: +27 (11) Cell: +27 (72) Fax: +27 (86) alan@bbsdp.co.za 18 Leonora Road Selcourt Springs The Department of Trade & Industry Tel: +27 (11) Fax: contactus@thedti.gov.za 77 Meintjies Street Sunnyside Pretoria Objectives of the incentive scheme To fast track existing SMMEs that exhibit good potential for growth into the mainstream economy; To grow black-owned enterprises by fostering linkages between black SMMEs and the corporate and public sector enterprise; To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprise; To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities. Qualifying criteria of the incentive scheme Fifty-one percent (51%) black majority shareholding; R to R35 million turnover per year; One year in operation and trading as a business; Fifty percent (50%) management positions held by black people (historically disadvantaged individuals); Enterprises formally registered for VAT; Eligible to obtain funding to a maximum of R1 million: - R for tools, machinery and equipment on a 50:50 cost-sharing basis - R for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost sharing basis. Be operating and trading for at least one financial year at the sole discretion of the dti, an enterprise that has been operational/registered for less than a year 6

8 Website may be considered for this incentive, provided that the enterprise can provide sufficient evidence to service a tender/contract. or Projects submitted by us: 7

9 Entity: : Date (if closedend): Persons Interviewed: Application Department of Trade and Industry(DTI) Business Process Services Incentive (BPS Incentive) 31 March 2014 Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za Customer Contact Centre: The DTI Campus 77 Meintjies Street Sunnyside Pretoria 0002 The BPS incentive aims to attract investment and create employment in South Africa via off shoring activities. The BPS incentive components are a: A base incentive, which offers a three-year operational expenditure grant that tapers down in line with the narrowing cost gap between South Africa and other destinations; and A graduated bonus incentive, which is offered for greater job creation, if the applicant exceeds certain annual offshore job creation targets. This incentive is payable only during the years in which the targets are exceeded and is structured as a percentage of the base incentive. An applicant (legal entity) may be involved in starting a new operation or expanding an existing operation, in order to perform BPS activities, which may be operated from more than one physical location in South Africa. The applicant must: Be a registered legal entity in South Africa, in terms of the Companies Act, 1973 (as amended) or the Companies Act, 2008; the Close Corporations Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended); Be a taxpayer in good standing and provide a valid tax clearance certificate; Be performing BPS activities; and Submit an application for the BPS incentive prior to the commencement of operations. The DTI will determine whether an applicant is eligible and will base its decision on the following: The applicant must, by the end of three years from the start of operation of the new project or the expansion, create at least 50 new offshore jobs in South Africa, as defined in the BPS Incentive Programme Guidelines. The applicant must commence its commercial operations no later than six months from the date on which the BPS incentive grant was approved. Failure to reach this target date will lead to the cancellation or disqualification of the application, thus requiring the applicant to submit a revised application to reapply for the grant. 8

10 Website Projects submitted by us: In a joint venture arrangement, at least one of the parties must be registered in South Africa as a legal entity. 9

11 Entity: : Date (if closedend): Department of Trade & Industry DTI Capital Projects Feasibility Programme CPFP Undisclosed N/A N/A Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za Customer Contact Centre: Website The DTI Campus 77 Meintjies Street Sunnyside Pretoria Dhesegan Govender Greg Barnes N/A This is a cost sharing grant providing a contribution to the cost of feasibility studies that are likely to lead to feasibility projects outside South Africa that will increase local exports and stimulate the market for South African capital goods and services. The primary objective is to facilitate feasibility studies that are likely to lead to projects that will increase SA exports and stimulate the growth of the local capital goods and services sector and allied industries. The secondary objectives include: attracting higher levels of domestic and foreign investment; strengthening the international competitiveness of South African businesses; the creation of jobs in South Africa; the stimulation of project development in Africa and in particular the Southern Africa Development Community (SADC) countries; support for the objectives of the new Partnership for Africa s Development; and promoting linkages with and development of small, medium and micro enterprises and black economic empowerment business. The programme s contribution is in the form of a cost sharing grant up to a maximum of 50% of study costs for feasibility studies outside Africa and 55% in Africa. The size of the grant falls within the range of R to R5 million, which can be a maximum of 55% for projects in Africa and 50% for projects outside Africa of the total feasibility study costs. Studies that fulfil the following criteria will be eligible to apply for a grant through the programme: must be undertaken by South African companies; and although it should be aimed at achieving local content of 50% in the feasibility study and project in terms of goods and professional services, this percentage will remain at the discretion of the Adjudication Committee. The project must fulfil the following non-financial criteria: New projects, expansion of existing projects and rehabilitation of existing projects; All capital goods sectors are eligible for programme funding; The project that is anticipated to lead from the study must fulfil the objectives of the 10

12 Projects submitted by us: programme; The minimum local content of the project should be 50%, but in cases where this is not achieved, the application will be evaluated as described in the programme guidelines; Projects can be situated anywhere in the world (excluding South Africa), while projects in Africa will be encouraged; and The project must have an adequate chance of being declared a success 11

13 Entity: : Date (if closedend): Department of Trade & Industry DTI Critical Infrastructure Programme Undisclosed N/A CIP Secretariat: +27 (12) (12) Enquiries: Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za Customer Contact Centre: Website The DTI Campus 77 Meintjies Street Sunnyside Pretoria Dhesegan Govender Greg Barnes N/A The CIP is an incentive for projects that support infrastructure necessary for the establishment of investment projects. The key objectives of the programme are to: Support the competitiveness of South African industries by lowering business costs and risks Provide targeted financial support for physical infrastructure that will leverage strategic investment with positive impact on the economy Stimulate upstream and downstream linkages, taking into account government priorities such as growth and employment, BEE, Integrated Rural Development, Urban Renewal Strategies and Spatial Development. In terms of the CIP, the infrastructure for which funds are required is deemed to be 'critical' if the investment would not take place: without the CIP funding contribution if the infrastructure projects would be executed without the CIP contribution it can be proven that it would be of a smaller scale, or lower quality, or would be established at a later stage than the period than when it was intended. The CIP supports only the construction of infrastructure that enables the investment project or the expansion of existing fixed investment. Under no circumstances will the CIP fund the investment itself unless the infrastructure is itself the investment. The Critical Infrastructure Programme (CIP) is a non-refundable scheme that covers between 10% and 30% of the total development costs of the qualifying infrastructure. The cash grant is made available to the approved beneficiary upon the completion of the infrastructure project. The approved beneficiary will be reimbursed in two phases upon receipt of such claims from the entity. The approved amount to be claimed in each of the phases will be determined by the beneficiary. 12

14 Eligibility criteria Projects submitted by us: Private sector enterprises that are legal entities, incorporated and registered in terms of the Companies Act (Act No. 69 of 1984, as amended), and any external legal entity registered in terms of Chapter XIII of the Companies Act (Act No. 61 of 1973, as amended); Public sector enterprises (i.e. public entities); Private-Public Partnerships (PPP) comprising: local government and a private legal entity; local government and a public enterprise; public enterprise and a private legal entity; and combination of any of the above. 13

15 Entity: : Department of Trade & Industry Employment Creation Fund R2billion Date (if closed-end): First Close : 30 June 2011 Second Close 30 October Open 1 September 2011 tbc Persons Interviewed: Details Application Mr. Jan Magoro Mr. Gcina Hlabisa Mr. Jan Magoro Tel: +27 (12) Cell: +27 (72) jmagaro@thedti.gov.za Mr. Gcina Hlabisa Fax: +27 (12) ghlabisa@thedti.gov.za Block A, 1 st Floor, DTI Campus 77 Meintjies Street Pretoria Tim Mc Donald Greg Barnes 9 June Only available through Provincial Governments Must demonstrate that the project is sustainable The project must have other sources of funding Compliance with South African legislation (BBBEE) Minimum Investment R10 million. available over three years Evaluation Panel Representatives include DDG s from Dept of Trade & Industry, Dept of Science & Technology, Dept of Public Enterprise, Dept of Economic Development, National Treasury, and other independents Projects submitted by us: 14

16 Entity: : Date (if closed-end): Persons Interviewed: Details Application Department of Trade and Industry(DTI) The Manufacturing Investment Programme (MIP) (under the Enterprise Investment Programme (EIP) ) Undisclosed 21 July 2014 N/A Enquiries: Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za mipappsq@thedti.gov.za Customer Contact Centre: The DTI Campus 77 Meintjies Street Sunnyside Pretoria 0002 The incentive programme aims to enhance the sustainability of manufacturing investment projects by small enterprises and to support large-to-medium-sized investment projects in manufacturing that would otherwise not be established without the grant. The incentive programme provides investment support to both local- and foreign-owned entities, by offering an investment grant of up to 30% of the value of qualifying investment costs in machinery, equipment, commercial vehicles, land and buildings, required for establishing a new production facility; expanding an existing production facility; or upgrading production capability in an existing clothing and textile production facility Investment projects of between R5 million and R30 million: may qualify for an investment grant of between 15% and 30% of their qualifying investment costs, calculated on a regressive scale and payable over a two-year period. Investment projects of R30 million and above: may qualify for an investment grant of 15% of their qualifying investment costs, calculated on a regressive scale and payable over a two-year period. Investment projects of R5 million and below must: demonstrate financial commitment to the planned investment project; have a viable business plan; provide business plan information, identifying the customers, competitors, competitive advantage, technology, marketing strategy and management particulars; be financially viable, subject to the projections being realistic and reasonable; substantiate the need for financial grant assistance and indicate how the grant will be used to improve the financial viability of the planned project; and achieve a minimum 50-point score as a contribution to industrial 15

17 policy targets. All investment projects above R5 million must: meet the criteria for small investment (less than R5 million) projects, as stated above; and achieve a minimum score of four points for industrial policy targets Website Projects submitted by us: Prospective applicants must adhere to the following in order to qualify for assistance via the MIP: Applicants must be registered legal entities in South Africa, as defined in the Companies Act of 1973 (as amended); Close Corporations Act of 1984 (as amended); and the Co-operatives Act of 2005 (as amended). Section 21 companies or not-forprofit or gain organisations are specifically excluded from applying. Projects that were previously trading as Sole Proprietors, Partnerships or Trusts and converted to qualifying registered legal entities (as indicated above), in order to apply for expansion projects, must submit full financial statements of the previous legal entities as proof of their base year. These financial statements should have been accepted by the South African Revenue Service. Applicants must be taxpayers in good standing and provide original, valid and current tax clearance certificates. Projects must constitute new production facilities; expansion of an existing production facility; or upgrading of production capability in an existing clothing and textile production facility. Qualifying investment costs for machinery, land and buildings, and commercial vehicles, are capped at R200 million. Projects must be classified as being within the manufacturing sector (Standard Industry Classification Code 3), in terms of the Standard Industrial Classification of all Economic Activities. Projects must apply for and obtain approval from the DTI before investment assets are taken into commercial production. 16

18 Entity: : Date (if closedend): Persons Interviewed: Details Application DTI Support Programme for Industrial Innovation (SPII) Undisclosed N/A Dr Ntokozo Mthembu (SPII Champion) Ms Dorcus Totseti (SPII Administrator) Dr Ntokozo Mthembu Tel: +27 (11) Fax: +27 (11) Ntokozom@idc.co.za Ms Dorcus Totseti Tel: +27 (11) Fax: +27 (11) DorcusT@idc.co.za The DTI Campus 77 Meintjies Street Sunnyside Pretoria 0002 Product Process Development Scheme o Provides financial assistance to small; very small and micro enterprises, and individuals in the form of a non-repayable grant; o R1 million (maximum grant); o 50% of qualifying costs incurred; o 75% of qualifying costs incurred; and o 85% of qualifying costs incurred; Matching Scheme o Provides financial assistance in the form of a non-repayable grant. o The incentives for BEE and ownership by women/people with disabilities provided under both the PPD and Matching Schemes do not apply to large companies. o R3 million (maximum grant); o 50% of qualifying costs incurred; o 65% of qualifying costs incurred; and o 75% of qualifying costs incurred; Partnership Scheme o Promotes large scale development through the provision of conditionally repayable grant; o The levy percentage and repayment period are established at the time of the grant; o R3 million (maximum grant); o 50% of qualifying costs incurred; o 50% of qualifying costs incurred; and o 50% of qualifying costs incurred. The qualifying costs in SPII are as follows: 17

19 Personnel Related Costs; Travel Expenses (defined maximum); Direct Material; Capital Items and Tooling (pro rata); Software (not general software); Documentation; Testing and Trials; Licensing Costs; Quality Assurance and Certification; Patent Costs; and Subcontracting and Consulting. Website Projects submitted by us: The following are non qualifying costs: Production and commercialisation related; Marketing and administrative costs; Product/process development for a single client; Basic and applied research; Projects which, at the time of application, are more than 50% (70% for PPD) complete; and All costs incurred prior to submitting a duly completed application. 18

20 Entity: : Date (if closed-end): Persons Interviewed: Details Application DTI Sector Specific Assistance Scheme (SSAS) Exports Reimbursable 80:20 cost-sharing grant scheme N/A N/A Administrators Secretariat: +27 (12) Business Development Unit: +27 (12) (31) (41) Enquiries: Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za Customer Contact Centre: The DTI Campus 77 Meintjies Street Sunnyside Pretoria 0002 Export development costs such as market research, consultancy fees and other expenses; Export promotion costs such as consultancy fees and other expenses; Product development costs such as consultancy fees and other expenses; Company development costs such as consultancy fees and expenses towards installing or improving Quality Management Systems; Service development such as consultancy fees and other expenses; and Advertising and publicity (international). The qualifying sectors are: 1. Aerospace; 2. Rail and marine; 3. Agro-processing; 4. Automotive; 5. Business Process Outsourcing services; 6. Capital equipment and allied services; 7. Chemical allied industries; 8. Creative industries; 9. Electro-technical; 10. Film production; 11. Metals and allied industries; 12. Pre-qualified ICT services; 19

21 Website Projects submitted by us: 13. Textile and clothing; and 14. Pre-qualified tourism services (only for investment purposes excluding real estate). An applicant who receives funding from the dti cannot apply for this financial assistance; An eligible industry must be a registered tax paying entity or non-profit organization; Activities of entities seeking SSAS incentive should fall within the South African industry sectors or sub-sectors prioritised for development and promotion by the dti; and Industries applying for the incentive should be distinct and independent with regard to their operations and ownership. 20

22 Entity: : Date (if closedend): Persons Interviewed: Details Application Department of Trade and Industry(DTI) Tourism Support Programme (TSP) (under the Enterprise Investment Programme) Undisclosed 21 July 2014 N/A Enquiries: Tel: +27 (11) Fax: +27 (86) contactus@thedti.gov.za Customer Contact Centre: The DTI Campus 77 Meintjies Street Sunnyside Pretoria 0002 Programme Manager: Tourism Support Programme, The Enterprise Organisation, Department of Trade and Industry Enquiries: tspappsq@thedti.gov.za The DTI has introduced this targeted incentive programme to support the development of tourism enterprises that will stimulate job creation and encourage a geographic spread of tourism investment. Given the fact that tourism is highly concentrated in the metropolitan (metros) areas of Johannesburg, Cape Town and ethekwini, projects located within these metros are excluded from the programme. However, projects located in marginalised areas within the metros will be considered under the programme. Marginalised areas are considered to be those areas with higher than the national average unemployment rate. The incentive programme offers a grant of up to 30% towards qualifying investment costs for establishing and expanding existing operations in South Africa. The incentive is available to local- and foreign-owned enterprises and is provided for qualifying investment costs of furniture, equipment, vehicles, land and buildings/ land improvements of up to R200 million. The investment grant applicable is capped at a maximum of R30million. The applicant must be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended); Close Corporations Act, 1984 (as amended); Co-operatives Act, 2005 (as amended); and Trusts in terms of the Communal Property Act. Section 21 companies or not-for-profit or gain organisations are specifically excluded from applying. Where a project was trading as a Sole Proprietor, Partnership or Trust and converts to a qualifying registered legal entity as indicated in 3.1 (above) in order to apply for 21

23 an expansion project, such a project must submit the full financial statements of the previous legal entity as proof of its base year. Such financials should have been accepted by South African Revenue Services (SARS). The applicant must be a taxpayer in good standing and must, in this regard, provide a valid tax clearance certificate before the grant is disbursed. The project being applied for must constitute a new investment or the expansion of an existing tourism project. The cost of the qualifying investment in furniture, fittings and/or equipment, vehicles, land and buildings/ land improvements, will be capped at R200 million. The project activities must be classifiable under tourism activities, as defined in these guidelines. For purposes of this requirement, the applicant must disclose all the activities in which the business will be involved, together with the percentages of revenue generated or projected to be generated from each activity. The project and its activities must comply with all relevant applicable South African legislation that could materially affect the project The projects must create a minimum number of full-time jobs which may include one owner-operator. These work out to : Below R5m 8 jobs R5m R10m 10 jobs R10m R20m 12 jobs R20m R30m 15 jobs R30m R50m 20 jobs R50m R75m 30 jobs R75m R100m 50 jobs R100m R150m 70 jobs R150m R200m 85 jobs The project must be at least a level four (4) BB-BEE contributor, achieving a score of 65 or above on the Generic Scorecard in terms of the Codes of Good Practice for BB-BEE.2 This requirement takes into account the exemptions in terms of Qualifying Small Enterprises (QSEs) as set-out in terms of the Codes of Good Practice. Projects should apply and receive approval from the DTI before investment assets are taken into commercial operation. Any project taken into operation before approval by the DTI will be considered as non-qualifying Small Projects (Investment projects of R5m and below) The applicant must demonstrate commitment to the planned investment project. The DTI will therefore assess: the financing structure of the project; that the finance sourced together with the grant is adequate in relation to the requirements of the project; and that there is evidence of commitment to fund the project from the financiers that form part of the funding structure of the project. (Conditional approval for the TSP grant may be given to qualifying projects that wish to use the grant to leverage other sources of funding). The project must be financially viable; subject to the projections being realistic and reasonable. The project must substantiate a need for financial grant assistance and the application must indicate how the grant will be used to improve the financial viability of the planned project. 22

24 The applicant must provide business plan information, including the target market, competitive advantage, marketing channels and management. Medium-to-Large Projects (investment projects of above R5m) In addition to the evaluation criteria for small projects, as stipulated above, the following criteria will apply for projects of above R5m: The applicant must demonstrate how the grant is necessary for the project to proceed. Projects are expected to explore other sources of funding before seeking grant funding. Website Projects submitted by us: The principle is to use the incentive to: fill funding gaps where there is insufficient equity capitalisation for the project; fill funding gaps where cash flows cannot support more third-party debt; influence location of the project in favour of South Africa, in cases where the investor is considering other countries for locating the project. 23

25 Entity: : Date (if closedend): Persons Interviewed: Details Application Website Department of Trade & Industry (DTI) Co-operative Investment Scheme (CIS) Max grant of R per project N/A N/A Administrators Secretariat: +27 (12) Business Development Unit: +27 (12) (31) (41) (21) /60 contactus@thedti.gov.za 77 Meintjies Street Sunnyside Pretoria Gauteng 0002 Eligible entities: Be incorporated and registered in South Africa in terms of the Co-operatives Act of 1991; Be operating or will operate in the emerging sector; Adhere to co-operative principles; Be an emerging co-operative owned by historically disadvantaged individuals; Be rural and semi-urban biased; and Be biased towards women, youth and people with disability. Qualifying criteria for the incentive scheme: Business development services; Business profile development; Feasibility studies/market research; Production efficiency; Technological improvement projects; Plants and machinery; Start-up requirements; and Working capital requirements The Co-operative Incentive Scheme (CIS) is a 90:10 matching cash grant for registered primary co-operatives (a primary co-operative consists of five or more members). The CIS is an incentive for cooperative enterprises in the emerging economy to acquire competitive business development services and the maximum grant that can be offered to one co-operative entity under the scheme is R

26 Projects submitted by us: =3 25

27 Entity: : Date (if closedend): Persons Interviewed: Details Application Department of Trade & Industry (DTI) Clothing & Textile Competitiveness Improvement Programme (CTCIP) Max R2,5 million per project over 5 years for company level grants Max R25 million per project over 5 years for cluster grants 31 March 2014 N/A Tel: +27 (11) Fax: contactus@thedti.gov.za 77 Meintjies Street Sunnyside Pretoria The CTCIP was initiated and designed to stimulate the competitiveness of the South African clothing and textile manufacturing sector. The incentive programme aims to subsidise competitiveness improvement activities in small, medium-sized and large companies in the clothing and textile manufacturing sector that would otherwise not be able to finance these interventions. The scheme will also support interventions that include supplier and/or customer organisations related to these entities. Access is subject to companies or clusters performing a detailed company level competitiveness analysis. It entails that the company or cluster formulates a business plan, which will form the basis of the competitiveness improvement programme. The CTCP approval panel requires such a business plan to analyse the strategic position of the company, identify areas where the company is lacking competitiveness (through benchmarking the company s performance against local and international players in clothing and textile manufacturing) and formulate interventions to alleviate problems of low competitiveness. Formulating the business plan will be the responsibility of the company and no support will be available from national structures. As benchmarking forms the basis for measuring the effectiveness of competitiveness interventions, future alignment with benchmarking results would be essential for the continued public support of the programme. The incentive programme provides investment support to both locally and foreign-owned entities by offering a cost-sharing grant incentive of 75% of project cost for cluster projects and 65% of project cost for company-level projects. These incentives will not cover costs pertaining to machinery, equipment, commercial vehicles, land or buildings in an existing clothing and textile production facility Grants made under the programme will be made exclusive of value added tax (VAT). The company-level grant will support the competitiveness improvement initiatives of qualifying companies through the provision of 65:35 cost-sharing grants: 65% from the CTCP grant and 35% from 26

28 the company. Grant support for each company will be limited to a cumulative ceiling of R2,5 million over the five-year period of programme implementation. The cluster grant will support the development of clusters through the provision of 75:25 cost-sharing grants: 75% from the CTCP grant and 25% from the cluster participants. Grant support for each approved partnership will be limited to a cumulative ceiling of R25 million over the five-year period of programme implementation. Website Projects submitted by us: 27

29 Entities: : Date (if closedend): Persons Interviewed: Details Application Department of Trade & Industry (DTI), GODISA Trust, the National Technology Transfer Centre (NTTC), Technology Advisory Centre (TAC), Technology for Women in Business (TWIB) Programme, South African Quality Institute Seda Technology Programme (STP) Max of R per project Ravini Moodley ( Technology Transfer Division) Ravini Moodley Tel: +27 (12) Fax: +27 (12) rmoodley@seda.org.za STP provides a range of services that assists small enterprises, particularly enterprises in the 2nd economy, to access and acquire technology. "2nd economy", as defined by STP, broadly refers to small enterprises (registered or not as legal entities), that are marginalised with respect to all or most of the following: Access to funds Access to markets Limited business skills Limited technical know-how Access to appropriate technology The following are the categories that will qualify for TTF funding: Design, formulation, materials and methods transfer, including design improvement and optimization. Know-how, knowledge, skills and expertise transfer, including training and mentoring related to the technology being transferred. Designs, equipment, systems, machinery and tooling directly related to the product and process technology being transferred. The Know-how, knowledge, skills and expertise required to operate and maintain the equipment, systems and machinery, including training and mentoring related to the technology being transferred. Expert resource expenses regarding the technology, where such costs do not exceed 20% of the total approved TTF funding provided by stp IP payments (e.g. License agreements) and expertise transfer payments to enable the TT transaction Travelling and subsistence claims regarding the technology transfer transactions subject to AP s prior approval. Legal and expert resource expenses regarding the negotiations, agreement and transfer of the technology. Business training, development and mentoring. General Business Services e.g., equipment, machines, facilities or processes that are utilized to provide repairs, examinations, overhauls, support or assistance in some form or other, as well as in instances where specialized equipment, machines or processes are utilized to provide support for manufacturing, mining, agro-processing or service enterprises. 28

30 Website Projects submitted by us: The Technology Transfer Division (TTD) of STP has two main thrusts which is (1) to provide technology transfer services to small enterprises, and (2) Provide specific technology support for women-owned enterprises. The latter thrust focuses on the provision of technology transfer services and support to women owned enterprises (>50% woman ownership); both these thrusts provides funding for small enterprises to acquire the necessary technology and technical support for effective technology transfer transactions. STP offers financial assistance in the form of a non-repayable grant up to a maximum of R per project. =1 29

31 Entity: : Date (if closedend): Persons Interviewed: Details Application National Treasury Neighbourhood Development Partnership Grant (NDPG) R10 billion N/A Talita van der Westhuizen Talita van der Westhuizen Tel: +27 (12) Fax: +27 (12) ndp@treasury.gov.za Private Bag X115 Pretoria 0001 The Neighbourhood Development Programme was then established in the National Treasury, with the task to pilot a new public finance approach focussing on a medium-to-long term commitment to targeted neighbourhood development projects in South Africa. All Municipalities are essentially eligible for funding, but not all will automatically be awarded funds. The NDP supports neighbourhood development projects that provide community infrastructure and create the platform for private sector development and that improve the quality of life of residents in targeted areas. The Grant is comprised of a Technical Assistance (TA) fund intended for strategic and project planning and a Capital Grant (CG) for investment into catalytic township projects. TA is generally used for Township Regeneration Strategies, business planning and detailed planning. Implementation is done through the Capital Grant. Typical projects are nodal and precinct developments; linkage projects and general improvement initiatives. In general, NDP funds interventions that are within municipal mandate or directive, therefore speeding up delivery. NDPG does not fund private sector developments, but provides foundations or preconditions for these to occur. Many of the challenges in the NDPG target areas go beyond the provision of economic or social infrastructure. Of critical significance are the infrastructural and locational legacies of Apartheid planning and development and these are targeted for effective economic development. Registrations of municipalities are evaluated according to the following criteria: Council support for project 30

32 Whether the area is a township Whether there is a prospect for a partnership with the private sector Whether the project is in alignment with national and provincial initiatives and priorities Whether the project has a large catchment area reinforcing the possibility of private sector investment Whether there is a potential to create the critical mass of both commercial and community facilities and amenities that the NDPG requires Whether the project is ready to implement Whether the project is sustainable at all stages of its life cycle. Website Projects submitted by us: The National Treasury reserves the right to amend these criteria from time to time 31

33 Entity: : Date (if closed-end): Persons Interviewed: Details Department of Public Works Contractor Incubator Programme Undisclosed N/A Ms Ntshadi Olowolagba (ASD) Ms. Ntshadi Olowolagba (ASD) Fax: +27 (31) Tel: +27 (31) / ntshadi.olowolagba@dpw.gov.za Application Website Projects submitted by us: Cnr of West and Aliwal Str DURBAN 4000 The Incubator Programme targets projects within the R1, 5 million to R30 million range. The purpose of the incubator programme is to create an enabling environment within which selected existing contracting enterprises can develop into sustainable contracting enterprises. Preference will be applied in the accessing of work so that enterprises owned and controlled by blacks, women and the disabled persons are advanced Provides sourcing suppliers on Incubator-designated projects from the Incubator Supplier Register and supplies side measures for the support of growing enterprises through a structured mentorship-centred enterprise development programme with improved alignment of institutional support structures. The key elements of the support measures being: Access to mentorship Access to financial support Access to information Access to any other development support that would be relevant for contractor development Registration on the CIP is conducted on an annual basis through adverts that are placed on local and national media. 32

34 Entity: : Date (if closed-end): Persons Interviewed: Details Department of Cooperative Governance and Traditional Affairs. (COGTA) Municipal Infrastructure Grant Ms Fortunate Makhabu (Executive Manager) Mr Werner Heydenreich (Senior Manager MIG Policy) Mr Themba Dladla (Senior Manager MIG) Ms Fortunate Makhubu Tel: +27 (12) /4994 Fax: +27 (12) fortunatem@dplg.gov.za Mr Werner Heydenreich Tel: +27 (12) /4896 Fax: +27 (12) werner@dplg.gov.za Mr Themba Dladla Tel: +27 (12) /4996 Fax: +27 (12) thembad@dplg.gov.za Call Centre: +27 (12) Application Private Bag X804 Pretoria 0001 The MIG is a conditional grant to municipalities, and thus the management of the grant at municipal level must occur within the planning, budgeting, financial management and operational arrangements in this sphere. National government provides infrastructure subsidies to ensure that all households have access to a basic level of infrastructure services. for municipal infrastructure is to be distributed in an equitable, transparent and efficient manner, which supports a co-ordinated approach to local development and maximises developmental outcomes. Proper community participation process is important to ensure that the true needs of the communities are being addressed by the identified projects. The community identifies the need for a service and the ward committee reports to the municipality. Basis for any decisions on infrastructure provision is the Integrated Development Plan (IDP s) compiled by the Municipalities. The municipality needs to establish what are the basic infrastructure needs and priorities that must be addressed. Project proposals include a brief description of the project and a rough budget for planning purposes. The feasibility of the 33

35 projects still needs to be assessed through proper project feasibility studies, which can be funded through MIG. As soon as the prioritised list of projects has been determined, resources must be allocated to conduct feasibility studies to determine the sustainability of the proposed projects, compile the Technical Reports (Water and Sanitation projects only), conduct Environmental Impact Assessments (EIAs) and obtain the approval thereof and to complete the Project Registration forms on the Management Information System (MIS). Website Projects submitted by us: Sector departments need to participate in the feasibility study progress to guide on MIG conditions and sector specific conditions. The project registration process ensures compliance is achieved at all three levels of Government including sector departments on technical standards and norms 34

36 Entity: : Date (if closed-end): Persons Interviewed: Details Department of Higher Education & Training National Skills Fund (working in conjunction with the National Skills Levy) R5 billion Mr Patrick Samuels Mr Patrick Samuels Tel: +27 (11) Patricks@hwseta.co.za 123 Schoeman Street PRETORIA 0001 Call Centre: Tel: Fax: National Skills Authority at the Department of Labour Private Bag X9090 Cape Town 8001 Room th Floor 120 Plein Street Cape Town 8000 Application Tel: Fax: The NSF funds are not intended to finance infrastructure and/or ongoing operational costs of SETAs to be able to deliver on this project. For this reason the applicants should demonstrate that the required infrastructure is in place as only costs directly related to the delivery of learning will be covered. These include: Training provider fees Learner stipends (where required) Company training/workplaces costs Assessment/moderation costs Quality assurance costs Graduation and certification Specialised equipment for disabled persons and to accommodate them in the learning place Pro rata project management costs Applicants must demonstrate sufficient implementation capacity to undertake proposed projects. These might include : 1. Network of providers/partners 35

37 Website Projects submitted by us: 2. provincial/local infrastructure capacity 3. Systems for administering projects 4. Project management capacity The application must demonstrate reasonable benefits that will accrue to the beneficiaries : 1. employments prospects 2. further learning opportunities To qualify for a Skills Development Grant an employer must: Have paid Skills Development levies. Have a Skills Development Facilitator. Follow all the rules and regulations in the Skills Development Act 97 of pdf 36

38 State Owned Enterprises Central Energy Fund DBSA Energy and Environment Partnership Grant Jobs Fund Renewable Energy Market Transformation (REMT) National Lottery Distribution Fund PIC Isibaya Fund 37

39 Entity: : Date (if closed-end): Persons Interviewed: Details Application Website Projects submitted by us: CEF (Pty) Ltd Central Energy Fund (CEF) Ms Adila Osman Ms Adila Osman Tel: +27 (10) adilao@cefgroup.co.za CEF House Block C Upper Grayston Office Park 152 Ann Crescent Strathavon Sandton 2031 Johannesburg CEF (Pty) Ltd. is involved in the search for appropriate energy solutions to meet the future energy needs of South Africa. Monies in the Central Energy Fund were collected from motorists for energy development purposes. This continued until The fund plays a funding role and is managed by the CEF board for that purpose. In terms of the CEF Act, the purpose of CEF is to give effect to the objectives of the Central Energy Fund, which are to: Finance and promote the acquisition of coal, the exploitation of coal deposits, the manufacture of liquid fuel, oil and other products from coal, the marketing of the said products and any matter connected with the said acquisition, exploitation, manufacture and marketing; The acquisition, generation, manufacture, marketing or distribution of any other forms of energy and research connected therewith; Any other object for which the fund may be applied, and which has been designated or approved by the said Minister with the concurrence of the Minister of Finance."

40 Entity: : Date (if closed-end): Persons Interviewed: Details Foreign Affairs Ministry, Finland; Austrian Development Agency; DBSA Energy and Environment Partnership Grant 9.5 million Euros Mr Yaw Afrane-Okese (Regional Director) Mr Godfrey Sanga (Regional project Manager) Mr Gershwin Pududu (Intern) Mr. Yaw Afrane-Okese Tel: +27 (011) Fax: +27 (011) YawA@dbsa.org. Godfrey Sanga Tel: +27 (011) Fax: +27 (011) GodfreyS@dbsa.org Application owners: Gershwin Pududu Tel: +27 (011) Fax: +27 (011) GershwinP@dbsa.org Provides part-financing for project development studies that would make projects bankable and subsequently lead to concrete investments. It aims at assisting in increasing access to sustainable energy services derived from renewable energy sources like solar, hydro, wind, biofuels, biomass, geothermal energy and energy efficiency. Targeted beneficiaries are private companies, research institutions, not-for profit organizations, NGOs and other institutions from the public and private sector. The core projects to be financed will include; Pre-feasibility- and Feasibility studies and Pilot- and Demonstration projects. The Partnership s contribution may cover the following types of expenses: Technical services and consultancies Travel expenses (air tickets, accommodation, etc.) Equipment and materials for the project Project execution expenses (note: not day-to-day running costs) Project promotion and dissemination costs The proposed projects should be necessitated by concrete development needs, for example, an increasing energy demand that that cannot be met by declining fossil fuel resources or the lack of capacity to convert those resources to useful form or the lack of capacity to extend the services to remote communities. The Programme will consider proposals that present innovative yet viable solutions to expedite energy efficiency methodologies and the provision of energy services from renewable sources. 39

41 Website Projects submitted by us: The EEP contribution is a non-reimbursable grant principally aimed at supplementing applicants' own funding. Project developer co-funding contribution is therefore a key requirement for eligibility for EEP funding for all applicants since that demonstrates commitment, ownership and sustainability of the project. Although there is no prescribed form and quantum of project developer s own contribution, the acceptable form and quantum will depend on the type of organisation of the applicant. For example, the requirement for a private sector company with resources will be obviously higher than an NGO with limited resources. mid=58 40

42 Entity: Total Available : Date (if closed-end): Persons Interviewed: Details Application DBSA Jobs Fund Dependant on project type: from 3-20 Million First Close : 31 July 2011 Second Close Open. Tba Chuene Ramphele Gidela Ndwandwa Chuene Ramphele Tel: +27 (11) Cell: +27 (83) Gidela Ndwandwa Tel: +27 (11) info@jobsfund.co.za Call Centre: The Jobs Fund 1258 Lever Road Headway Hills Midrand 1685 Gauteng Tim Mc Donald Greg Barnes 21 July 2011 Enterprise Development Window: Targets sustainable job creation initiatives and long term employment creation initiatives linked to private sector business development. Eligibility Requirements Private Sector: 1. Due diligence: Applicants must be tax compliant and in good standing with SARS. 2. Track record: The applying entity should have a minimum of two years of operational activity at the time of applying. The Jobs Fund will not fund start-ups, as other funding vehicles exist to support such initiatives and the fund wishes to leverage existing capacity. 3. Private sector led, or a private sector player is the leader of a consortium: Applicants must be for-profit enterprises or consortia led by for-profit firms. 4. Commercial basis: The initiative must be based on establishing, piloting or expanding a commercial, for-profit model which is linked to the core business of the applicants. 5. Not dependant on an outstanding government or legal decisions:: Initiatives must not be dependent on outstanding government decisions of a strategic, financing, regulatory nature to proceed. This does not refer to normal administrative decisions, such as the issuing of business licenses. 6. Matched funding: Initiatives are expected to share risk. To ensure full buy-in and commitment, applicants must commit to providing matching funding at a minimum ratio of 1:1. Eligibility Requirements non-private Sector 41

43 1. Due diligence: Applicants should be registered entities in good standing, and applications should be compliant with the PMFA and MFMA as applicable. 2. Track record: The applying entity should have a minimum of two years of operational activity at the time of applying. The Jobs Fund will not fund start-ups, as other funding vehicles exist to support such initiatives and the fund wishes to leverage existing capacity. 3. Although led by non-private sector players, initiatives must demonstrate some level of concrete private sector linkage in the initiative, with a degree of risk sharing. 4. Matched funding: Initiatives are expected to share risk. To ensure full buy-in and commitment, applicants must commit to providing matching funding at a minimum ratio of 0.2:1 Infrastructure Window: Focuses on local infrastructure development initiatives which will unlock job creation potential. Eligibility Requirements 1. Applicants must show a demonstrable gap / need / motivation for the initiative in relation to employment-generating economic activity. 2. Due diligence: The proposed process for procurement of infrastructure should be compliant with the PMFA and MFMA as applicable, and the project should appear in a statutory plan. 3. Private sector buy-in: Although the majority of infrastructure initiatives will be led by public sector players, the provision of infrastructure should be explicitly linked to a private sector investment which is contingent on this infrastructure to unlock job creation potential. 4. Track record: The applying entity must have an established track record of implementing similar infrastructure projects. 5. Matched funding: Initiatives are expected to share risk, and to ensure full buy-in and commitment, applicants must commit to providing matching funding at a minimum ratio of 1:1 over the lifetime of the project. Support for Work-seekers Window: Targets a cluster of initiatives aimed at facilitating rapid access to employment and work-related training for unemployed people, particularly the youth Eligibility Private Sector 1. Due diligence: Applicants must be tax compliant and in good standing with SARS. 2. Track record: The applying entity should have a minimum of two years of operational activity at the time of applying. The Jobs Fund will not fund start-ups, as other funding vehicles exist to support such initiatives and the fund wishes to leverage existing capacity. 3. Private sector led, or a private sector player is the leader of a consortium: Applicants must be for-profit enterprises or consortia led by for-profit firms with proven capacity to implement the proposed initiative. 4. Commercial basis: The initiative must be linked in some way to the core business of the applicant, although does not itself necessarily have to be profit generating. 5. Not dependant on outstanding government or legal decisions: Initiatives must not be dependent on outstanding government decisions of a strategic, financing, regulatory or judicial nature to proceed. This does not refer to normal administrative decisions, such as the issuing of business licenses. 6. Matched funding: Initiatives are expected to share risk, and to ensure full buy-in and commitment, applicants must commit to providing matching funding at a minimum ratio of 1:1. Eligibility Non-Private sector 1. Due diligence: Applicants should be registered statutory entities in good standing, and applications should be compliant with the PMFA and MFMA as applicable. 2. Although led by non-private sector players, initiatives must demonstrate some degree of linkage to the business sector and alignment with business demand, 42

44 3. Track record: The applying entity must be established in the relevant field for a minimum of two years at the time of applying. The Job Creation Fund will not fund applications submitted by new entities. 4. Matched funding: Initiatives are expected to share risk, and to ensure full buy-in and commitment, applicants must commit to providing matching funding at a minimum ratio of 0.2:1.. Institutional Capacity Building Window: Provides for cross-cutting institutional strengthening and capacity building initiatives aimed at institutions through which job creation is facilitated. Eligibility Requirements: 1. Registered entity: The applying entity must be established in the relevant field for a minimum of one year at the time of applying, and should be a statutory registered entity. The Job Creation Fund will not fund applications submitted by new entities. 2. Operational capacity: Organisations should have a degree of operational capacity which will allow for the contribution of own resources and the effective implementation of the funded initiative. 3. Sustainable sources of funding in place: Applying entities should have secured sustainable sources of funding with which to implement their job creation mandates. The institutional strengthening initiative is aimed at catalysing and unlocking the capacity of the entity to deliver on this mandate, and will not provide sources of funds for new job creation initiatives under this window (this does not preclude application under the other windows in the future). 4. Applications will only be accepted for initiatives explicitly aimed at one or more of the following: capacity building, organisational re-structuring, piloting of programmes and initiatives, facilitation of market access & linkages, coordination of initiatives, and project preparation activities aimed at expanding job creation initiatives. 5. Explicit link to job creation: All applications should contain a cogent, wellarticulated link between the proposed initiative and the potential for job creation. Enterprise Development Window: Private Sector: Matching funding at a minimum ratio of 1:1 The minimum grant size provided by the Jobs Fund will be R5 million, implying a minimum overall project size of R10 million. Non Private Sector: (NGO s, CBO s, Goverment Departments ) Matching funding at a minimum ratio of 0.2:1. The minimum grant size provided by the Jobs Fund will be R5 million, which implies a minimum project size of R6 million. Infrastructure Window: Minimum ratio of 1:1 over the lifetime of the project. The minimum grant size provided by the Jobs Fund will be R10 million, implying a minimum project size of R20 million. Support for Work-seekers Window Private sector: Matching funding at a minimum ratio of 1:1. The minimum grant size provided by the Jobs Fund will be R3 million. Non-private sector: Minimum ratio of 0.2:1. The minimum grant size provided by the Jobs Fund will be R3 million. Website Projects submitted by Institutional Capacity Building Window No mention made of funding parameters. 43

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46 Entity: : Date (if closed-end): Persons Interviewed: Details Application Global Environment Fund; World Bank; Development Bank of South Africa (DBSA) Renewable Energy Market Transformation.(REMT) Moeketsi Thobela( Project Coordinator) Fatima Collins (Business Development Specialist) Tracy Nkosi ( Project Administrator) Tracy Nkosi Tel: +27 (11) info@remtproject.org Website Projects submitted by us: Teljoy Building International Business Gateway Cnr New Road & Sixth Midrand 1685 Offers Technical Assistance and Financial Support to the South African Government in the removal of barriers to achieving the country s Renewable Energy (RE) Target. Technical assistance is offered in the following areas: Financial support is also offered to potential project developers in the areas of Renewable Energy Power Generation and Solar Water Heating for preinvestment phase grant funding Renewable Energy Power Generation (REPG) and Solar Water Heating (SWH): Both sub-components offer pre-investment matching grants (MG) in support of the identification, preparation, and financing of renewable energy projects. The SWH sub-component, has in addition to the MG, a performance grant (PG), which is aimed at supporting capacity-building subprojects covering the design, installation, or improvement, monitoring and documentation of demonstrative or path-breaking SWH systems In addition to grant funding, the REMT Project provides support for renewable energy policy and regulatory review, as well as capacity-building. Grant funds are often made available by government departments, public corporations, or trusts. The terms vary according to funders, however, a key common attribute is that grant funds do not attract interest nor is there an expectation from beneficiary to pay-back capital. 45

47 Entity: : Date (if closed-end): : Owner: Website Projects submitted by us: National Lotteries Board National Lottery Distribution Trust Fund Payments made for the 2010 period = R1,94 billion Prof. N A Nevhutanda (Chairperson) NLDTF (65383) Tim Mc Donald Greg Barnes The Lotteries Act identifies as beneficiaries of funds accumulated for good causes, the following five broad categories: Reconstruction and Development Programme Charities Arts, Culture and National Heritage Sport and Recreation Miscellaneous Purposes In terms of Regulations promulgated on 31 May 2002 in Government Gazette No , the funds in the NLDTF allocated for good causes will be distributed as follows: Reconstruction and Development Programme: 0%, Charities: 45% Arts, Culture and National Heritage: 28%, Sport and Recreation: 22% Organisations must be non-profit entities such as NPOs, NGOs, Section 21 companies, public benefit trusts, and schools and work for the public good. We welcome applications from organisations of all sizes, from national structures to local associations and community groups. The Charities Sector receives the biggest pool of funds to allocate and covers a wide range of organisations that are often known as welfare organisations, benevolent or philanthropic associations, or friendly societies. More generally, organisations can also apply if their activities: Improve the quality of life of the community as a whole. Assist disadvantaged or excluded groups, such as the elderly, disabled people and vulnerable children. Provide facilities or services for the underprivileged. 46

48 Entity: : Date (if closed-end): Persons Interviewed: Details Application Public Investment Commissioner (PIC) Isibaya Fund R7 billion First Close : Open Second Close Open. Roy Rajdhar (General Manager) Nico van Aardt (Private Equity) Vusi Raseroka (Renewable Resources) Roy Rajdhar Tel: +27 (12) Roy.rajdhar@pic.gov.za Nico van Aardt Tel: +27 (12) nico.vanaardt@pic.gov.za Vusi Raseroka vusi.raseroka@pic.gov.za Block C Riverwalk Office Park 41 Matroosberg Rd Ashlea Gardens Extension 6 Menlo Park Pretoria Website Tim Mc Donald Greg Barnes. Economic infrastructure(comprising energy, logistics, water, broadband, liquid fuels and commuter transport); Environmental Sustainability projects such as renewable energy, energy efficiency, clean technology, recycling and green firms, environmentally friendly construction, green buildings and conservation; Social infrastructure, focusing on health, education and housing; New Enterprise, Job Creation and BBBEE focusing of SMME development, support for fund managers espousing principles of BBBEEE and investments in sectors that foster growth, job creation and BBBEE particularly in those priority sectors identified by Government s Industrial Policy Action Plan (IPAP) (including agriculture, agro-processing, green and renewable energy technology, tourism and business process outsourcing Projects which are able to generate good financial returns while also supporting positive, long-term, economic, social and environmental outcomes for South Africa. Unlisted investments. Minimum Investment R20 million, realistically want R100m or more. Maximum R2 billion. Will only fund 60% of capital required. Senior debt and equity. Cost of capital more expensive than banks but can extend the term Want serious players with a track record and financial contribution. Enter into a development agreement. Direct investment and also fund fund manager s eg Old Mutual.

49 Projects submitted by us: 01A %7D&iP=7&iVctg=290 48

50 Industrial Development Corporation (IDC) Africa Strategic Business Unit Agro-Industries Agro-Industries Flood Relief Scheme Chemicals and Allied Industries Community Fund (under the transformation and entrepreneurship scheme) Development Fund for Workers (under the transformation and entrepreneurship scheme) Equity Contribution Fund (under the Transformation and Entrepreneurship scheme) Forestry and Wood products Green Industries Gro-E- Scheme Healthcare Information and Communication technology Media and Motion pictures Metal transport and machinery products Mining and Minerals Beneficiation People with Disabilities Fund (under the transformation and entrepreneurial scheme) Risk Capital Facility Programme Strategic High Impact Projects and Logistics Support Programme for Industrial Innovation Textiles and clothing Tourism Venture Capital Women Entrepreneurial Fund (under the Transformation and Entrepreneurial Scheme) 49

51 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation (IDC) Africa Strategic Business Unit Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Website Projects submitted by us: Tel: +27 (31) Fax: +27 (31) These include: Mining and beneficiation Agro processing Industrial infrastructure (including telecoms, energy, water & sanitation, transport, etc.) Tourism (primarily hotel and resort development) Healthcare Manufacturing (in general) Information and Communication Technology Forestry and related products Preference is given to projects that are: Potentially beneficial to the host country and South Africa; Are economically viable and sustainable in the medium to long term; Benefit a large number of people, regional groupings and/or local communities; Includes a credible operating partner; Are sizable and indicate and acceptable degree of self-sustenance within a reasonable time frame; Entail significant contributions from respective promoters. 50

52 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation (IDC) Agro-Industries R 5.9 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) is provided in a number of subsectors in the agricultural value chain, including: agro-processing (food and non-food), which can include on-farm, first-tier processing (such as packing and sorting) backward integrated agro-processing projects; beverages (alcoholic and non-alcoholic); aquaculture. For Companies within South Africa: The project must create jobs; and the funding request must be for at least R1- million. For Companies in the rest of in the rest of Africa: The project must facilitate the development of new industrial capacity; The project must be of direct benefit to South Africa in the form of, among other things, exports of South African capital goods and/or South African shareholding; The size of the project (total funding requirement) must be at least: ZAR 5-million for members of the Southern African Customs Union; USD 3-million for countries in the Southern African Development Community (SADC); and USD10-million for countries outside SADC. criteria: The application for funding must be supported by a comprehensive business plan that shows economic merit in terms of profitability and sustainability. Businesses, projects or credit applications must be commercially viable from a technical, marketing and financial perspective, and must be environmentally sustainable. 51

53 Website Projects submitted by us: The aim is to maximise the development impact of each potential investment. is usually not more than 60% (50% for investments outside South Africa) of the total funding requirement of a project. Applications can include start-ups and expansions projects. However, risksharing from operating private-sector investment partners is non-negotiable. Loan funding is preferred, but equity funding is considered where there is a strategic reason to do so. requirements from the IDC should be more than R1-million for debt funding and R5-million for equity (or equity-related) funding for South African businesses The application must meet the IDC s minimum requirements 52

54 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Agro-Industries Flood Relief Scheme R 500 million 31 March 2012 Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Relief scheme to help businesses that were struck by floods or drought during the 2010/2011 financial year. Businesses must be viable and demonstrate that their distress was a result of the floods or droughts from 2010 and 2011; Funds must be applied to finance working capital shortfalls as well as infrastructure/asset rehabilitation (of non-insured assets); Interest on these funds will be charged at prime less 3%; and Website Projects submitted by us: Applications must be made before 31 March

55 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Chemicals and Allied Industries R 20.6 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Scoping, prefeasibility and feasibility studies for projects that have the potential to develop new industries or to lead to the expansion of existing ventures. Projects that are geared towards replacing the need to import materials. Financing fixed assets and the fixed portion of growth in working capital requirements. Supporting technological upgrades to improve competitiveness. The business venture or project must exhibit economic merit in terms of profitability and sustainability; Shareholders and owners must make a reasonable contribution to the business venture which will be evaluated at the time of the application; Compliance with international environmental standards; The business venture or project should have a significant socio-economic impact such as job creation potential, value addition to raw materials, rural development, empowerment and township development; and Security, the form and nature of which must be related to your specific circumstances. Website Projects submitted by us: The application must meet the IDC s minimum requirements. 54

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57 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation IDC Community Fund ( under the transformation and entrepreneurship scheme) R 1 billion. Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Stimulates and develops largely small and medium enterprises, and makes the mainstream economy accessible to marginalised groups - women, people with disabilities, and workers and communities. Designed to help entrepreneurs access finance to develop and grow their business. for start-up businesses, expansions or expansionary acquisitions. Along with this, business support is offered, by way of a grant, helping with business planning, training and mentorship. Applicants must be able to demonstrate that their business is economically viable and financially sustainable. The business must be in one of the IDC's mandated sectors. Provision must be made for the employment of people with disabilities. provided will generally not be less than R1-million. This fund provides finance to marginalised communities that want to acquire shares in a company funded by IDC; Website Projects submitted by These businesses can be start-up, or companies looking to expand. The maximum amount that can be financed under this fund is R10-million; and there are no restrictions on the business size but it is a requirement that the community acquires a meaningful stake in the business. 56

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59 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation IDC Development Fund for Workers (under the transformation and entrepreneurship scheme) R 1 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Stimulates and develops largely small and medium enterprises, and makes the mainstream economy accessible to marginalised groups - women, people with disabilities, and workers and communities. Designed to help entrepreneurs access finance to develop and grow their business. for start-up businesses, expansions or expansionary acquisitions. Website Projects submitted by Along with this, business support is offered, by way of a grant, helping with business planning, training and mentorship. Applicants must be able to demonstrate that their business is economically viable and financially sustainable. The business must be in one of the IDC's mandated sectors. Provision must be made for the employment of people with disabilities. provided will generally not be less than R1-million. This fund provides finance to Broad-based Black Economic Empowerment transactions for at least 85% owned black worker groupings to acquire shareholding in IDC funded projects; It applies to black low-skilled workers who may have little prospect of accessing equity; Businesses that can apply may be start-ups, or companies looking to expand ; The maximum amount that can be financed under this fund is R15-million per transaction; There are no restrictions on the business size; The workers must acquire a meaningful stake in the business. 58

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61 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation Equity Contribution Fund (under the Transformation and Entrepreneurship scheme) R 1 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Stimulates and develops largely small and medium enterprises, and makes the mainstream economy accessible to marginalised groups - women, people with disabilities, and workers and communities. Designed to help entrepreneurs access finance to develop and grow their business. for start-up businesses, expansions or expansionary acquisitions. Website Projects submitted by us: Along with this, business support is offered, by way of a grant, helping with business planning, training and mentorship. Applicants must be able to demonstrate that their business is economically viable and financially sustainable. The business must be in one of the IDC's mandated sectors. Provision must be made for the employment of people with disabilities. provided will generally not be less than R1-million. This funding is available for new black entrants where shareholders hold a direct or indirect total net asset base of less than R1.5-million; Only black individuals or individuals of a 100% black-owned company. In the case where the company is not wholly black-owned, the black shareholding must be 25% plus one; This fund applies to start-up businesses or existing companies that wish to expand Black shareholders who are financed under the scheme must be involved in both the operations and management of the company; A maximum limit of R10-million has been set for each application; and Finance is provided to businesses with a total asset base of up to R80-million. 60

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63 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Forestry and Wood Products Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Finances projects and investments in the forestry, sawmilling, pulp, paper, furniture and wood industries, as well as those involved in biomass, renewable energy and energy efficiency. Can provide fixed assets or working capital, for the planning of new projects, or for expanding or rehabilitation of an existing business for project development in the forestry sector. Website Projects submitted by us: Individuals or businesses devising relatively sizeable projects; establishing projects that exhibit sustainable economic merit; and designing projects with significant developmental impact, particularly sustainable job creation, the creation of exports, value addition, empowerment and rural development. A written request for funding and a comprehensive business plan are required as part of the application; The project/business must exhibit economic merit in terms of profitability and sustainability; and Businesses/projects or credit applications must be commercially viable from a technical, marketing and financial perspective, and be environmentally sustainable. The application must meet the IDC s minimum requirements 62

64 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Green Industries R 26.7 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Website Projects submitted by us: Tel: +27 (31) Fax: +27 (31) Projects intended to enhance the environment and support the reduction, avoidance and adaptation of carbon emissions. Specific sub-sector focus areas for the business unit are: non-fuel based green energy (for example, renewable energy), energy efficiency and demand side management, emission and pollution management, fuel-based green energy (for example, waste to energy and co-generation) biofuels (mainly bio-ethanol). Provides funding for fixed assets and working capital; greenfields, expansions and rehabilitations; relatively sizeable projects; projects that exhibit sustainable economic merit; and projects with significant developmental impact particularly sustainable job creation, the creation of exports, value addition, empowerment and rural development. Preference is given to projects that demonstrate economic merit and show profitability and sustainability within a reasonable time frame; greenfield projects, expansions and rehabilitations, and relatively sizeable projects. The application must meet the IDC s minimum requirements 63

65 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Gro-E- Scheme R 10 billion is available over five years or until the scheme is exhausted Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Offers financial support to start-up businesses, including funding for buildings, equipment and working capital. Funds companies wanting to expand. The proviso here is that they must show an ability to create jobs. Businesses should also operate in sectors supported by the IDC which includes: green industries, which includes renewable energy, energy efficiency, pollution mitigation, waste management and recycling, and biofuels agricultural value chain, including agro-processing manufacturing, focusing on advanced manufacturing; automotive, components, medium and heavy commercial vehicles manufacturing; clothing textiles, footwear and leather; forestry, paper and pulp, and furniture; metals fabrication, capital and transport equipment; pharmaceuticals; plastics and chemicals mining value chain, including downstream mineral beneficiation, mining and mining technologies tourism and high-level services, which includes business process services and tourism media and motion pictures, which has to do with media pictures production, the media value chain of broadcasting (radio and television), media expansion including new media, music value chain, and film production and animation; and the knowledge economy, to do with health care, information and communications technology and biotechnology. The scheme works by funding businesses at prime less 3% for loans and the Real After Tax Internal Rate of Return (RATIRR) of 5% for equity financing. A minimum of R1-million with a maximum of R1-billion per project will be allowed Start-up businesses, including funding for buildings, machinery and working capital; Existing businesses for expansionary purposes; 64

66 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 R relative to the total funding required; Broad-based Black Economic Empowerment certification from an accredited verification agency, where applicable; and Website Projects submitted by us: Businesses operating or expanding in South Africa. 65

67 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Healthcare R 7.1 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) The scope includes a wide range of sub-sectors in the healthcare value chain including : manufacturing of pharmaceuticals, medicinal chemicals and botanical products; manufacturing equipment, including dental supplies, medical devices and technology; medical and surgical equipment; and optical equipment; setting up clinics and building hospitals; supporting buy-ins or takeovers by BBBEE partners into the healthcare sector. Businesses that show economic merit in terms of profitability and sustainability, that are led by competent management, and that are equipped with in-house capacity and technological know-how are considered. Businesses that show a significant developmental impact, such as upgrading rural or township areas, creating jobs, or adding to the quality of life of the communities where the development is proposed are considered. Pharmaceutical companies that demonstrate a commitment to local manufacturing and need support for trials may also apply for funding. Preference is given to projects that grow the local economy, create jobs and are sustainable and also on projects that support new entrepreneurs entering the sector, as well as on Broad-based Black Economic Empowerment. The Healthcare Strategic Business Unit has set criteria that must be met to qualify for a loan depending on the circumstance: The minimum loan size is R1-million The minimum equity amount is R5-million Security, the form and nature of which will relate to specific circumstances Compliance with international environmental standards Reasonable contribution from owners: 33% of total assets for going concerns; and 40% for start-ups, depending on the industry norms and risk profile Exposure may not exceed that of the owners of the business. For expansion projects: 66

68 the Healthcare Strategic Business Unit needs: Latest audited and actual financials (signed by the finance director, the managing director or the chief executive officer) Updated business plan focusing on the proposed project/expansion; and A detailed description of the nature of the expansion, its related costs and revenues. Website Projects submitted by us: For hospitals: The business unit would like all potential clients to read our material on our Township and Rural Hospital Scheme. The aim of this scheme is to develop new private hospitals and clinics, or to help expand existing facilities, in rural areas and townships across the country. A project must be aligned with the public healthcare sector as well as with the National Health Insurance objectives. The application must meet the IDC s minimum requirements. sector/healthcare/index.asp 67

69 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Media and Motion pictures R 8.5 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Provide funding in a number of sub-sectors of the motion picture and music value chain including : Production of feature films, television shows and documentaries at the beginning of the value chain; Broadcasting (both television and radio); Cinemas; Production of local music; and Alternative distribution systems (for feature films and music) using new technology New or existing companies that offer film, television or documentary projects that have been developed locally, or broadcasting or cinema projects that enhance local distribution and consumption of films, may apply. Applications for funding must be supported by a comprehensive business plan that shows economic merit in terms of profitability and sustainability. Businesses, projects or credit applications must be commercially viable from a technical, marketing and financial perspective, and must be financially sustainable. The aim is to maximise the development impact of each potential investment. Preference is that no more than 49% of the total funding requirement of a project is funded. Applications can include start-ups and expansions projects. Risk-sharing from operating private-sector investment partners is non-negotiable. Website Projects submitted by The application must meet the IDC s minimum requirements. 68

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71 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Metal transport and machinery products R 20.6 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Specific sub-sectors focussed on are: fabricated metal, capital and transport equipment, automotive assembly (including medium and heavy commercial vehicles, buses and taxis, and components, advanced manufacturing, and renewable and energy-saving industry components. Preference is given to financing fixed assets and the fixed portion of growth in working capital requirements; and new or existing projects or businesses that have a significant developmental impact, for example, rural development, empowerment, job creation, township development and value addition A minimum loan size of R1-million; A minimum equity amount of R5-million; Security, the form and nature of which will relate to your specific circumstances; Compliance with international environmental standards; A reasonable financial contribution from the owners of the business along the following broad guidelines, although the circumstances of each business will be carefully evaluated to arrive at an acceptable contribution level: 33% of total assets for going concerns; 40% for start-ups, depending on industry norms and risk profile; It is preferred that the exposure of IDC does not exceed that of the owners of the business; Contribution of historically disadvantaged persons under special circumstances may be lowered, in which case the IDC will be prepared to extend finance in 70

72 excess of the owner's contribution; and The project or business must exhibit economic merit in terms of profitability and sustainability. In the case of take-overs and buy-ins by historically disadvantaged partners: A signed Offer to Purchase agreement between the seller and the buyer or a signed Letter of Undertaking from the seller indicating the buyer's preferred bidder status. The Offer to Purchase should be valid for at least three months and give the IDC an exclusivity period of at least two months. Detailed information on the partners, such as the group structure and business activities. An independent valuation (including underlying assumptions) of the target company. Details of IDC funding and the application thereof. Details of the contribution by the purchaser. A signed draft plan explaining the involvement of historically disadvantaged persons in operational and/or executive management. Proof of limited scope of due diligence performed by historically disadvantaged persons on the seller's business. A business plan. The latest audited financials, management accounts and financial projections for the target company. A covering letter with details of the finance required from the IDC. In the case of expansions by existing businesses: The latest audited and actual financials, signed by the finance director, MD or CEO is required; also An updated business plan, focusing on the proposed project/expansion; and A detailed description of the nature of expansion, its related costs and revenues. Website Projects submitted by us: In the case of small, medium and start-up businesses: A comprehensive business plan Latest management accounts and financial projections. A covering letter with details of the finance required from the IDC. 71

73 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Mining and Minerals Beneficiation R 22.1billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) is provided for most types of mining activities, including onsite and offsite beneficiation. Four focus areas are : 1. Financial and technical assistance for the development of mining, beneficiation and metals projects in South Africa and the rest of the continent; 2. Financial assistance for junior and emerging mining houses and mining-related activities such as contract mining; 3. Facilitating the acquisition of mining assets by historically disadvantaged persons; and 4. Developing the South African jewellery manufacturing industry and optimising value-addition beneficiation opportunities. Projects considered are those that have a significant developmental impact on job creation, export generation, value addition, strategic value, industry development, empowerment and rural development. Projects that should apply for finance should be of sizeable value namely, have a finance requirement from IDC of more than R1-million in debt and/or more than R5- million in equity Applicants must have a well-developed, bankable plan with the required prospecting and/or mining permits, as well as a good understanding of the ore resource. All regulatory and environmental permits must have been completed or successfully submitted and been accepted by the appropriate authorities. Regarding equity funding, applicants need to have "discovered" all the resources and must have plans to develop the project through various evaluation phases to produce bankable feasibility studies. 72

74 On receiving an application, an initial assessment will be carried out and the applicant will be advised on whether the parameters of the proposal are consistent with the IDC's funding criteria. In the case of take-overs and buy-ins by historically disadvantaged partners, the IDC requires: A signed Offer to Purchase agreement between the seller and the buyer or a signed Letter of Undertaking from the seller indicating the buyer's preferred bidder status. The Offer to Purchase should be valid for at least three months and give the IDC an exclusivity period of at least two months with clearly stated payment terms. Detailed information on the partners, such as the group structure and business activities. An independent valuation (including underlying assumptions) of the target company. Details of IDC funding and the application thereof. Details of the contribution by the purchaser. A signed draft plan explaining involvement by the historically disadvantaged persons in operational and/or executive management. Proof of limited scope of due diligence performed by historically disadvantaged persons on the seller's business. A business plan. Signed Audited statements at least for the last three years, management accounts and financial projections for the target company as is without the purchaser's value add. A covering letter with details of the finance required from the IDC. In the case of expansions by existing businesses the IDC requires: Latest audited and actual financials signed by the finance director, MD or CEO. An updated business plan focusing on the proposed project/expansion. A detailed description of the nature of the expansion, its related costs and revenues. Website Projects submitted by us: In the case of small, medium and start-up businesses the IDC requires: A comprehensive business plan. 73

75 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation People with Disabilities Fund ( under the transformation and entrepreneurial scheme) R 1 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Stimulates and develops largely small and medium enterprises, and makes the mainstream economy accessible to marginalised groups - women, people with disabilities, and workers and communities. Designed to help entrepreneurs access finance to develop and grow their business. for start-up businesses, expansions or expansionary acquisitions. Along with this, business support is offered, by way of a grant, helping with business planning, training and mentorship. Applicants must be able to demonstrate that their business is economically viable and financially sustainable. The business must be in one of the IDC's mandated sectors. Provision must be made for the employment of people with disabilities. provided will generally not be less than R1-million. This fund applies to companies where a person or people with disabilities have a minimum shareholding of 50% plus one share; shareholding between 25% and 50% will be considered on revised terms. Applicants must demonstrate operational and management involvement. The maximum amount that can be financed under this fund is R8-million and applies to start-up and existing companies that wish to expand; and 74

76 Website Projects submitted by us: Only new entrants qualify for financing - that is, those shareholders with a direct or indirect total net asset base of less than R15-million. 75

77 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation (IDC) Risk Capital Facility Programme Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Primary focus is to provide risk finance to companies owned by historically disadvantaged people. is provided by the European Community through the Department of Trade and Industry. The IDC co-manages the fund with the European Investment Bank. Three channels through which funding is provided: a direct channel operating alongside the IDC s mainstream business a niche fund channel, where venture capital funds target a specific sector that has a developmental focus and a third party channel, where funds co-invest with other financial institutions. The maximum investment for the niche fund channel is R30-million. Small and medium enterprises (SMEs) must show significant job creation potential. SMEs are supported using equity and quasi-equity finance instruments as well as a business support programme to provide business planning, training and mentorship. Applicants must be South African and their projects must be located either in South Africa or elsewhere in Africa. Investments outside Gauteng and the Western Cape will be preferred for projects inside South Africa, while cross-border investment can be located anywhere in Africa. All applicants must : Demonstrate financial profitability, technical feasibility and economic viability and be environmentally sound; Highlight job creation features and empowerment compliance; Demonstrate elements of women entrepreneurs; Show a significant involvement of historically disadvantaged persons in management; Demonstrate compliance with South African environmental legislation; and 76

78 Have a programme for HIV/Aids prevention and awareness. All sectors of the economy are eligible except for projects in armaments, tobacco, and gambling fields and investment terms are decided on a case-by-case basis. Guidelines for those applying for direct or third party channel funding: The applicant must be an SME; The minimum historically disadvantaged persons ownership must be 25% and above; Job intensity of an investment, calculated on a cost per job basis, may not exceed R60 000; The minimum investment amount will be R for township and rural areas and R for other areas; and There is a maximum single investment amount of R20-million; and funds will be applied to improving the financial structure of under-capitalised companies. Website Projects submitted by us: Guidelines for those applying for niche fund channel support: Applicants must invest in SMEs; The maximum investment is R30-million; The Risk Capital Facility Programme will always be a minority equity investor; The exit period will be determined on a case-by-case basis; and The fund manager must demonstrate a sound track record, with a minimum historically disadvantaged persons ownership of 25% plus one share. 77

79 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Strategic High Impact Projects and Logistics R 11.2 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Strategic high impact projects, across sectoral projects within the IDC which will enable the development of a sector/industry from the primary stage through to the tertiary stage. for infrastructural projects that are linked to industrial projects. Such projects tend to be high impact, both in terms of development and job creation for high impact logistics projects that are linked to industrial development and improving trade logistics on a large scale. Lines of credit to other African Development Finance institutions and local financial institutions are also offered to promote the development objectives of the IDC, South Africa and Africa Projects are evaluated in terms of commercial, developmental and economic impact. Commercial criteria Profitability: Economically sustainable projects, with IDC's expected returns based on project risk and the type of funding made available to the project; Availability of equity partners: Local and/or international; Market growth potential: Global and/or local market growth potential; and Technological considerations: The degree of sophistication of the technology and the extent to which the envisaged technology is generally available. Development criteria Job creation potential: The number of jobs created, total capital cost per job; Broad-based Black Economic Empowerment: Direct BBBEE shareholding, broad-based shareholding (including local communities, skills development, workers, women, etc), BBBEE management and control, BEE procurement, and so on; and Poverty Nodes 78

80 Website Projects submitted by us: Regional development: Priority provinces including the Northern Cape, Eastern Cape, Limpopo and Free State, as well as spatial development initiatives and industrial development zones. Economic criteria Project size: The overall size of the project is taken into consideration in terms of the total asset base. Smaller projects will be considered in the rural and priority provinces provided that these have significant developmental impact; Foreign revenue potential/export: Foreign revenue earnings potential arising from exports as well as savings from import replacement; and Local content in capital expenditure: Ideally, more than 50% of capital expenditure content should be sourced locally. 79

81 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Support Programme for Industrial Innovation Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Designed to provide financial assistance to projects that create innovative products and processes. Focuses specifically on the phase from the conclusion of basic research the proof of concept stage to the point at which a pre-production prototype has been built. There are three schemes within the support programme: Product Process Development; Matching Scheme; and Partnership Scheme. These are available to all South African registered businesses or individuals, depending on the merit of their project proposals. The programme is managed on behalf of the Department of Trade and Industry. Product process Development: This scheme is used to promote technology development for new products or processes at the lower end of innovation. For this reason, it targets small, very small and micro enterprises that have less than 50 employees, that have a turnover of less than R13-million, and that have assets of under R5-million. Financial assistance is in the form of a non-repayable grant of between 50% and 85% of direct development costs, up to a maximum of R Matching Scheme: To be considered for help under this scheme, developments should represent a significant advance in technology. Assistance is given to small and medium enterprises, with less than 200 employees, 80

82 a turnover of under R51-million and assets of less than R19-million. Financial aid is in the form of a non-repayable grant of between 50% and 75% of direct development costs, up to a maximum of R1.5-million. Partnership Scheme: The Partnership Scheme applies to development that offers a significant advance in technology, and is open to all South African registered enterprises. Applicants must be able to demonstrate the development impact of their proposed project. Website Projects submitted by us: Financial support is provided in the form of a conditional grant of up to 50% of the direct development costs. This is conditionally repayable on successful commercialisation of the project, via a levy on sales. The minimum conditional grant is R1.5-million. All applications are evaluated according to: The technical innovation of the new project; The marketability of the project; The ability to manufacture and market the processes or products developed; A significant portion of the development and production must take place in South Africa; The availability of project management skills to develop the project; and The financial ability to successfully complete the proposed development. 81

83 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Textiles and clothing R 20.6 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Offers support to a variety of enterprises across the industry sector, ranging from producing natural or synthetic fabrics, to creating home decor, from leather goods and to manufacturing clothes. The projects supported must promote entrepreneurship, industrial development and strategic partnerships. Preference is given to: Financing fixed assets and the fixed portion of growth in working capital requirements; Supporting projects and/or businesses that have a high developmental impact such as rural development, empowerment, job creation, township development and value addition; and Supplying distress funding for troubled companies that have a clear turnaround plan. Together with the general requirements of IDC applications, there must be: A minimum loan size of R1-million Minimum equity amount of R5-million Minimum investment requirements: Security, the type of which will relate to your specific circumstances; Compliance with international environmental standards; Relevant bargaining council compliance; Shareholders/owners are expected to make a material contribution, generally 35% of total assets for going concerns and 45%-50% for start-ups, depending on the industry norms and risks involved. It is preferred that IDC exposure does not exceed that of the owners of the business. However, the contribution for start-ups with a material developmental and job creation impact may be lowered, in which case the IDC may be prepared to extend 82

84 Website Projects submitted by us: finance greater than the owner s contribution. 83

85 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Tourism R 8.5 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Concentrates on the accommodation sub-sector through asset- based finance, but business and adventure tourism and township tourism developments may be possible in the future. Contributes to the tourism industry by participating in the establishment of good quality hotels in South Africa and the rest of Africa. Broad-based Black Economic Empowerment projects with significant development impact in townships and rural areas are supported. Economic viability of the project is the overriding criterion. The sustainability of the project is assessed with a minimum 40% owners contribution. BBBEE applications qualify for a reduction in the owners contribution. The minimum loan amount is R1-million. Security is required. This might include the registration of bonds over fixed and movable assets and a pledge of personal suretyships. Financial instruments are structured to fit the risk profile and cash flow of the business. Commercial debt: Minimum loan amount of R1-million; Market-related interest rate; A five-to-10 year loan term; Negotiable grace periods including a moratorium on capital repayments and capitalisation of interest. Risk participation (taking up equity or quasi equity) : For applications from historically disadvantaged persons, where the promoters 84

86 Website Projects submitted by us: are not in a position to provide sufficient capital and the business shows economic merit, the IDC might consider taking equity in addition to loan finance to ensure an acceptable financial structure; The IDC only seeks a meaningful minority stake of a temporary nature; Capital repayments will be structured to ensure a meaningful and acceptable rate of return to the IDC; The IDC may consider equity participation for strategic projects or projects that would not ordinarily happen without IDC participation. 85

87 Entity: : Date (if closed-end): Persons Interviewed: Details Application Industrial Development Corporation Transformation and Entrepreneurship Scheme Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Website Projects submitted by us: Tel: +27 (31) Fax: +27 (31) Refer to: Equity Contribution Fund Development fund for Workers Women Entrepreneurial Fund Community Fund and People with Disabilities Fund (All under the transformation and entrepreneurial scheme) 86

88 Entity: : Date (if closedend): Persons Interviewed: Details Application Industrial Development Corporation(IDC) Venture Capital Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Provides equity funding to start-up technology-focused businesses. The mandate is to enable the completion of the development of technology-rich South African Intellectual Property (IP) into a market-ready product, followed by the commercialisation thereof. takes the form of equity (ordinary shares and shareholder loans). does not have a defined investment period. The prospect of exit opportunities within a reasonable time frame should exist. IDC will only invest if it believes that it will be able to realise a return in excess of a 30% real after tax IRR. Although the IDC does not require BBBEE shareholding in the business at the outset, it requires the right to exit all or a portion of its share of the investment to a mutually agreed upon BBBEE party, when the time is right. IDC s equity stake will entitle it to proportional board representation as well as the right to attend monthly management meetings with the objective of providing strategic support, guidance and advice where necessary. A key requirement relating to the IP is that it has to be globally unique and sciencebased. IP based on aesthetic design and business process improvements are examples of IP which fall outside the scope of IDC s mandate. In return for the funding that provided, the IDC requires a significant minority equity stake of between 25% and 50%, which will be determined by a valuation of the business. 87

89 The intellectual property must be owned by the company invested in. The development of the intellectual property must be done in-house but situations where intellectual property has been acquired and then further developed in-house may be considered. The intellectual property should preferably be patentable. If it is not patentable, it should provide some form of sustainable competitive advantage to the business. The management team must include people with all the key competencies required to make a success of the business. If this is not the case, then clear plans need to be in place to bring them on board at the appropriate time. The key founding shareholders should be involved in the business on a full-time basis. The business should display good prospects of being economically viable. Website Projects submitted by us: If an application does not meet all of these criteria it cannot be funded by the Venture Capital unit. 88

90 Entity: : Date (if closedend): Persons Interviewed: Details Application Industrial Development Corporation IDC Women Entrepreneurial Fund (under the Transformation and Entrepreneurial Scheme) R 1 billion Ndu Njoko (KZN Regional Operator) Lungile Tom (KZN Regional Operator) Ndu Njoko ndun@idc.co.za Lungile Tom lungilet@idc.co.za Suite rd Floor The Embassy Building 199 Anton Lembede Street Durban Tel: +27 (31) Fax: +27 (31) Stimulates and develops largely small and medium enterprises, and makes the mainstream economy accessible to marginalised groups - women, people with disabilities, and workers and communities. Designed to help entrepreneurs access finance to develop and grow their business. for start-up businesses, expansions or expansionary acquisitions. Along with this, business support is offered, by way of a grant, helping with business planning, training and mentorship. Applicants must be able to demonstrate that their business is economically viable and financially sustainable. The business must be in one of the IDC's mandated sectors. Provision must be made for the employment of people with disabilities. provided will generally not be less than R1-million. Website This fund applies to businesses with a minimum shareholding by women of at least 50%; shareholding between 25% and 50% will be considered on revised terms: It can apply to a start-up business or for expansions; It is available to new entrants - that is, those shareholders with a direct or indirect total net asset base of less than R15-million; The business must include women in its operations and management; and Finance is provided to businesses with a total asset base of up to R80-million and the maximum amount we will finance under this fund is R30-million a transaction 89

91 Projects submitted by us: 90

92 Entity: : Date (if closedend): : Ithala Development Finance Corporation Ithala Business Finance Loans up to R30 million (Ithala Business Finance approved loans for small micro and medium enterprises totalling R192,0 million for 2009 financial year) n/a Vijay Misra (CEO) Zanele Mkhize Vijay Misra Tel: +27 (31) Zanele Mkhize Tel: +27 (31) Fax: +27 (31) zmkize@ithala.co.za PO Box 2801 Durban 4000 Owner: Ownership / Reporting Authority Tim Mc Donald Greg Barnes, Andre Pottas KZN Provisional Government Ithala Development Finance Corporation Limited (Ithala) is mandated to promote, support and facilitate social and economic development in the Province of KwaZulu- Natal, in accordance with the Province's growth and development strategy and in an appropriate and sustainable manner. In terms of Section 3 of the KwaZulu-Natal Ithala Development Finance Corporation Act, No. 2 of 1999: To mobilise financial resources and to provide financial and supportive services to the people of KwaZulu-Natal; To plan, execute, finance and monitor the implementation of development projects and programmes in the Province; To promote, assist and encourage the development of the Province's human resources and its social, economic, financial and physical infrastructure; To promote, encourage and facilitate private sector investment in the Province; To act as the Government's agent for performing any development-related tasks and responsibilities considered may be more efficiently or effectively performed by a corporate entity. Lending criteria Ithala strives to finance projects and businesses that are profitable and sustainable over the long run. We believe that it is irresponsible to overburden our clients with debts that they will be unable to pay. We also finance projects that will have a positive development impact in the form of: Job creation; Levels of wealth creation; Black empowerment; Provision of rental space to medium-sized businesses; 91

93 New technologies and skills introduction; Beneficiation of South Africa s raw materials, export and/or import replacement; The multiplier effect of the project and level of foreign investment to be generated. Ithala also believe that the entrepreneur should be committed to his business to ensure its success. To do this we encourage our clients to contribute something in the form of cash or assets to the business. Website Projects submitted by us: Whilst we understand that most of our customers do not have assets or cash to contribute to their businesses, Ithala does finance certain projects or businesses 100% at its own discretion. 92

94 Entity: : Date (if closedend): : Ithala Development Finance Corporation KZN Growth Fund Trust R1.1 billion long term debt fund as either senior or mezzanine debt, or a combination (minimum deal size R30m to maximum R80m deal size.) Loans 5-15 years. Expires 2014 Brian Craig (Chairperson - KZN Growth Fund Trust) Leonette Reynolds-Venter (acting CEO) Stella Mpofu (CFO) Vijay Misra (Trustee) Tel: +27 (31) Fax: +27 (31) info@kzngrowthfund.co.za 15th Floor Nedbank Building 303 Anton Lembede Street Durban 4001 Owner: Ownership / Reporting Authority Website Projects submitted by us: Tim Mc Donald, Andre Pottas Greg Barnes, Herbert Dreyer KZN Growth Fund Managers - subsidiary of Ithala Bank - managing KZN Growth Fund Trust. Trustees represented by three funders and 2 government representatives. Investment committee is sub-committee of Trustees. The Trust was established to finance medium to large scale infrastructure related projects in KwaZulu-Natal. The Growth Fund is an innovative initiative aimed at creating sustainable economic development, job creation and black economic empowerment within the infrastructure sector. The Growth Fund targets projects of R30 million and above and focuses on economic sectors such as transport and logistics, energy, telecommunications, bulk water and waste, manufacturing, mineral beneficiation and mining. Priority Sectors: Tourism Bulk Water and Waste Transportation and Logistics Telecommunications Power ITC, bio-fuels, manufacturing, agriculture processing, aquaculture and mineral beneficiation. BBBEE should be key consideration; a significant part of the BEE shareholding must reside within the KZN Province: Minimum BEE ownership( 30%) of which the majority (50%) must be owned by KZN entities or individuals Development Impact: Number of sustainable jobs created 93

95 Entity: : Date (if closedend): Persons Interviewed: Details Application Khula Enterprise Finance and Anglo American plc Anglo-Khula Mining Fund Mxolisi Kota (Fund Manager) Mxolisi Kota Cell: +27 (83) Tel: +27 (11) Fax: +27 (11) mkota@angloamerican.co.za 44 Main Street Johannesburg 2001 The Fund provides financial assistance to junior mining projects. Particularly where junior mining projects could not access funding for pre-mining feasibility studies as well as the acquisition of mining licences. Assistance is provided in the form of an equity and or debt instrument and individual investments range between R1m and R20m per project. The equity stake will not exceed 49% of the issued share capital of the investee company The owners of the investee company must be involved on a permanent basis, in the day-to-day management and operations of the investee company. The owners of the investee company must contribute to the investee company from their own resources to ensure commitment and risk sharing. The investee company must comply with all necessary legal requirements as well as Anglo American's standards and procedures regarding environmental and safety policies. Website Projects submitted by us: Deal flow of the investee company should emanate primarily from contracts between the investee company and Anglo and its subsidiaries 94

96 Entity: : Date (if closedend): : Khula Enterprise Finance Ltd Enablis Acceleration Fund R50 million Loan period not to exceed 60 months Malose Kekana (Acting Managing Director) Mkhululi Mazibuko (Chief Operating Officer) Tembakazi Koali (KZN Regional Manager) Darryl Rose (Senior Investment Manager) Darryl Rose Tel: +27 (11) Cell: +27 (83) Darryl.Rose@enablis.org.za 7 Mellis Road Bradenham Hall North Tower 2nd Floor Rivonia Johannesburg Tembakazi Koali Tel: +27 (31) Owner: Ownership / Reporting Authority Tim Mc Donald Greg Barnes Established in 1996 and operating as an independent agency under the auspices of the Department of Trade and Industry, Khula is recognised for its reputation as a major force in the development of the SME sector. This fund is a partnership between Enablis Financial Corporation SA (Pty) Ltd and Khula Enterprise Finance Limited The company is a wholesale finance institution which operates across the public and private sectors, through a network of channels to supply much-needed funding to small business. Khula's channels include South Africa's leading commercial banks, retail financial institutions, specialist funds and joint ventures. Its primary aim is to bridge the "funding gap" in the SME market not addressed by commercial financial institutions. Purpose of this fund Improve access to early-stage funding to SMEs. Reach out to SMEs in remote/rural provinces. Create new sustainable jobs South African SMEs that are accredited by Enablis Entrepreneurial Network Black owned and women entrepreneurs for start-ups and or expansion of the business. SMEs involved in all sectors - ICT, transport, tourism, agriculture and services industry. Website Projects SMEs that need working capital and or asset finance. 95

97 submitted by us: 96

98 Entity: : Date (if closedend): Persons Interviewed: Details Application Khula Enterprise Finance Ltd and Identity Development Fund (Pty) Ltd (joint venture fund) Identity Development Fund (IDF) Undisclosed Polo Radebe (Chief Executive Officer) Polo Radebe: Cell: +27 (83) Tel: +27 (11) Fax: +27 (11) polo@idf.co.za 1st Floor Etana House 22 Oxford Road Parktown 2193 The fund is not sector-specific, but the target markets are black women and youth owned business enterprises in South Africa. Creates long-term growth from profitable portfolio investments in SMEs. Investments must promote BEE (black women and youth) Provides both debt and or equity funding (50%/50%) Repayment periods range between 3-5 years Financing ranges: Start-up/early stage R250k to R3million (Khula funding only) Emerging /MBO and expansion R3million to R7.5million Community projects R7.5million to R30million. Website Projects submitted by us: Exclusions: Levered buy-out funds, Venture capital/private equity in competition with Fund, Speculative real estate, Gambling, military or any illegal activities/ventures inconsistent with objectives of the Fund. Black, women and youth-owned (owner-managed) and rural or Peri-urban based enterprises Investees must be viable, very innovative, have great potential for sustainability, and create jobs (social developmental impact). 97

99 Entity: : Date (if closedend): Persons Interviewed: Details Application Khula Enterprise Finance Limited, Fabvest Investment Holdings (FABCOS) Small Growth Trust Fund Loans range between R and R3million per portfolio entity N/A Neil Holdsworth (Chief Executive Officer) Neil Holdsworth Cell: +27 (82) Tel: +27 (11) Fax: +27 (11) neill@sisonkefund.co.za Sisonke Fund Managers & Mentors 2 Ward Street, Benoni Website Projects submitted by us: Finance start-ups, expansions, bridging finance and asset based finance to qualifying SMEs Provide qualifying SMEs with the necessary infrastructural support and resources Foster entrepreneurship within the SME sector Reach out to SMEs in priority provinces of South Africa Migrate Black businesses from the informal sector to formal sector Owner-managed by South African citizen Small or medium sized enterprises at start-up phase, early development or expansion phase Demonstrate potential to achieve a positive social impact Viable and demonstrate the potential for sustainability with growth potential of at least =25% annualised rate of return 10% Own contribution in the form of cash, experience or business assets Security depends on availability and risk profile. =208 98

100 Entity: : Date (if closedend): Persons Interviewed: Details Application Website Projects submitted by us: Khula Enterprise Finance Limited Enablis Khula Loan Fund R50 million Darryl Rose (Senior Investment Manager) Darryl Rose: Tel: +27 (11) Cell: +27 (83) Darryl.Rose@enablis.org.za 7 Mellis Road, Bradenham Hall, North Tower, 2nd Floor, Rivonia, The Enablis Khula Loan Fund is a partnership between Enablis Entrepreneurial Network, Khula Enterprise Finance Limited and FNB Enterprise Solutions. It is currently capitalised at R50m. Enablis Entrepreneurial Network (Enablis) is a nonprofit private-public partnership sponsored by Hewlett-Packard, Accenture, Telesystem Ltd. and the Government of Canada. FNB Enterprise Solutions, a subsidiary of First National Bank Limited, is First National Bank s specialist Small and Medium Enterprises financing division. Purpose of the fund To provide predominantly ICT-focused SMEs access to funding to start and or expand businesses. Products offered by the fund Equity and or debt instruments; Subsidised pre and post business support services through training, skills transfer and networking. South African citizens. Companies or closed corporations where 50.1% issued ordinary / members interest is held by SA citizens. Partnerships where majority partners are SA citizens. If the applicant is a Trustee, the majority beneficiaries must be SA citizens. Qualifying entrepreneurs for start-up or expansion of businesses. =211 99

101 Entity: : Date (if closedend): Persons Interviewed: Details Application Khula Enterprise Finance Limited, Akwandze Agricultural Finance (Pty) Ltd Khula-Akwandze Fund (KAF) Range from R1,300 to R15,500 per hectare N/A Martin Slabbert Martin Slabbert Tel: +27 (13) Tel: +27 (13) Fax: +27 (13) slabbertm@tsb.co.za Akwandze Agricultural Finance (Pty) Ltd Tsb Sugar Mill, Mhlati Farm Malelane 1320 What Is The Khula-Akwandze Fund? The Khula-Akwandze Fund (KAF) is a joint venture between Khula Enterprise Finance Ltd (Khula) and Akwandze Agricultural Finance (Pty) Ltd (Akwandze). The purpose of the Fund is to provide agricultural development loans to small and medium scale sugarcane growers and contractors within the sugarcane production value chain in the Nkomazi region of the Mpumalanga Province. The Fund is managed by Akwandze. The following loan instruments are offered to meet financing requirements: Crop establishment/re-establishment; Ratoon management (crop maintenance); Purchase and installation of above ground irrigation equipment; Installation of fixed irrigation infrastructure; Electricity supply; Contractor bridging loans; and Right-to-occupy (RTO) rental bridging loans Who qualifies? To be eligible for the fund, the beneficiary must: a. Be a registered Mpumalanga sugarcane grower with the South African Sugar Association; Have a Cane Delivery Agreement (CDA) with Tsb Sugar; Have authority to occupy the land they are farming (freehold, leasehold, right-to-occupy); Be a citizen of the Republic of South Africa; Be black owned (>50% black owned) or black empowered (>25% black owned); Be viable and creditworthy. b. Be a registered contractor with Tsb Sugar that provides services to growers (e.g. 100

102 cane cutting and cane haulage). Be a citizen of the Republic of South Africa; Be black owned (>50% black owned) or black empowered (>25% black owned); and Be viable and creditworthy. Website Projects submitted by us: =

103 Entity: : Date (if closedend): Persons Interviewed: Details Application Khula Enterprise Finance Limited Land Reform Empowerment Facility (LREF) Maximum loan R10m per project N/A Tel: +27 (31) / 7 Fax: +27 (31) helpline@khula.org.za The Atrium, Smart Xchange Building, 5 Walnut Road, Durban. LREF is a wholesale financing facility through which Khula lends money to commercial banks and other reputable agricultural lenders for on-lending to Land Reform beneficiaries. The aim of LREF therefore is to broaden the control, management and ownership by Black South African citizens in land-based highvalue income generating assets in the agricultural sector. To increase the commercial success of LREF-funded projects, LREF via Khula Mentorship scheme, assists these projects with training and skills development intervention through a training grant. Financing facilities under LREF 1. Mortgage Loan Facility This is a financing facility which enables the target market to buy and own land for agricultural production purposes, under the following criteria: Maximum loan R10m per project; Maximum loan of R per black person participating in the project; Loan repayment period not exceeding 20 years; Business Venture must be commercially viable; available to South African citizens only; and The Business Venture must be a registered legal entity.. 2. Equity Share Scheme An equity share scheme is a business arrangement in which both land reform beneficiaries and private sector partners buy equity in the form of shares in a landbased agricultural enterprise. Who qualifies for LREF funding? Black farm workers and other Black people who aspire to invest in the following sectors: Primary Agriculture; and Agro-processing 102

104 What do I need to do to get access to LREF finance? The enterprise must be commercially viable, with potential to maintain and or create new employment opportunities. Qualifying criteria Finance is available to South Africans only; The project must be a registered legal entity; The business venture must be commercially viable; Enterprise to be financed must operate within South Africa; Maximum loan of R per black person participating in the Business Venture; and Loan repayment period not exceeding 20 years. Website Projects submitted by us: =

105 Entity: : Date (if closedend): Persons Interviewed: Details Application Website Khula Enterprise Finance Limited, Metropolitan Life Limited and The Median Fund (Pty) Ltd. Izibulo SME Fund Undisclosed N/A Linday Kearns (Acting Chief Executive Officer) Linday Kearns Cell: +27 (83) Tel: +27 (21) / 47 / 18 Lindsay@medianfund.com Median Fund Managers (Pty) Ltd Suite 416, The Old Castle Brewery Building 6 Beach Road Woodstock, Cape Town 7924 Purpose of the fund Provides early-stage funding to SMEs (improve access to finance); Provide SMEs with necessary infrastructural support and resources; Foster entrepreneurship for men and women in the SME sector; Reach out to SMEs in far-flung areas of South Africa; Encourage meaningful econimic participation of historically disadvantaged South Africans; Investments include equity and debt, loans, loans convertible into shares (ordinary or preference shares); Shares (ordinary or preference shares); Debentures or convertible debentures (convertible into ordinary or preference shares); Warrants, options and other securities of, or relating to portfolio companies; Consulting services, skills facilitation and development provided to portfolio companies; Provides working capital, expansion capital, the purchase of capital assets, refinancing of existing debt obligations; Excluded investments - buy-back/purchase of shares from a third party in the portfolio company. Who qualifies? Black start-ups and/ or expansion SMEs; SMEs must be owner-managed (by South Africans); SMEs must demonstrate growth potential of 25% - 40% or more annualised return on investment; Investment term in any portfolio company is 5 years. =

106 Projects submitted by us: 105

107 Entity: : Date (if closedend): Persons Interviewed: Details Application Gijima KZN, European Union. Local Competitiveness Fund (LCF) Makhosi Mzizi (Senior Manager: Project Development & Management) Fatima Osman (KZN Regional Operator) Makhosi Mzizi: Tel: +27 (33) Cell: +27 (82) mzizim@kznded.gov.za Fatima Osman Tel: +27 (33) Fax: +27 (86) OsmanF@kznded.gov.za 270 Jabu Ndlovu Street Pietermaritzburg KwaZulu-Natal The LCF will provide partnership groups with support to establish integrated projects to encourage: A base of infrastructure and services to provide a platform for increased competitiveness. Enabling structural economic change, including repositioning the province into higher value-added segments of supply chains, based on knowledge based manufacturing and service sectors, while increasing equitable participation in these value chains. Providing particular support to sectors that have a high potential to boost the socio-economic objectives, in particular, employment: agriculture and agro processing; tourism; clothing and textiles; wood and wood products; arts, crafts and cultural industries; information and communications technology; logistics and transport. The LCF will attempt to create a self-sustaining market for business support services, finance and other essential private goods with linked support to local government to address those public goods which are essential to the achievement of local economic development initiatives. The LCF is split into two discrete types of support: LCF Competitiveness Action Plan (LCF CAP) and LCF Implementation (LCF IMP). Only Partnership Groups will be eligible to access funding from the LCF. The Partnership Group will involve representatives of key stakeholders for the particular sector, set up to: represent the interests of the development players and/or communities concerned normally, but not necessarily a Public-Private Partnership; define the Competitiveness Action Plan and submit the application for support under the Fund; implement the Competitiveness Action Plan; wield the power of decision. 106

108 A partnership must be constituted from two or more of the following types of entities: Business enterprises, trade unions, non-governmental organisations, institutions providing services to the economy, legally established community entities, finance institutions, government (national, provincial or local government) who agree to establish a CAP. Partnership Group member s need not all be located within the KwaZulu-Natal Province, but only those whose primary location is within the KwaZulu-Natal may be direct beneficiaries of support under the fund. The geographic area covered by a CAP must be clearly defined but need not correspond to an administrative area or sub-division of KwaZulu-Natal. Website Projects submitted by us: Priority sectors agriculture and agri processing; tourism; clothing and textiles; wood and wood products; arts, crafts and cultural industries; information and communications technology; logistics and transport

109 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund (NEF) Acquisition Finance(under the Corporate Fund) West Block,187 Rivonia Road, Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) The Corporate fund provides capital to Black owned and managed enterprise, and black entrepreneurs who are buying equity shares in established white owned enterprises, project finance and BEE businesses that are or with to be listed on the JSE This product is for BEE applicants seeking to buy equity in existing businesses and provides funding from R5m to R100m. Focus on medium to large companies Focus on partnerships with existing management teams and other equity investors Minimum BEE ownership of 25.1% post NEF investment Active BEE management participation Active BEE involvement in investee companies BEE financial contribution determined on case by case basis Investment instruments to include debt, equity and mezzanine finance NEF reserves the right to oblige applicant to participate in the NEF mentorship programme Typical investment horizon of 4 to 7 years Security to include personal suretyship Website Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement Possibility of co-funding (private or public sector) d/232/default.aspx 108

110 Projects submitted by us: 109

111 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund (NEF) Expansion Capital (under the Corporate Fund) West Block, 187 Rivonia Road Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) The Corporate fund provides capital to Black owned and managed enterprise, and black entrepreneurs who are buying equity shares in established white owned enterprises, project finance and BEE businesses that are or with to be listed on the JSE NEF will provide funding of R5m to R100m to entities that are already black empowered, but seek expansion capital to grow the business Investment instruments to include debt, equity and mezzanine finance in support of BEE BEE Shareholding should be minimum of 25.1% Pricing based on instrument, risk matrix, security package etc. Typical investment horizon of 4 to 7 years Active BEE involvement in investee companies Security to include personal suretyship Website Projects submitted by us: Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement Possibility of co-funding (private or public sector) /237/Default.aspx 110

112 Entity: : Date (if closed-end): Persons Interviewed: Details Application National Empowerment Fund (NEF) Franchise finance (under the imbewu Fund) West Block,187 Rivonia Road, Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) This fund is designed to promote the creation of new businesses and the provision of expansion capital to early stage businesses. The imbewu Fund aims to cultivate a culture of entrepreneurship by offering debt, quasi-equity and equity finance of up to R20 million. The Imbewu Franchise Finance is geared towards enabling black people to leverage the infrastructure available within the franchise industry in order to gain access to economic opportunities whilst reducing investment risk. NEF has a preference to fund top 40 rated franchises Active management participation by BEE parties Minimum BEE shareholding of 50.1% Transactions will be structured with sustainable capital structure, NEF funding to bridge shortfall in equity BEE party to have pre-qualified with franchisor NEF funding generally limited to R5m NEF will target a nominal pre-tax IRR of between 12% to 15% on its funding The NEF investment horizon is 5 to 7 years Website Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement Possibility of co-funding (private or public sector) 111

113 Projects submitted by us: 234/Default.aspx 112

114 Entity: Total Available : Date (if closed-end): Persons Interviewed: Details Application National Empowerment Fund (NEF) Entrepreneurship Finance (under the imbewu fund) West Block,187 Rivonia Road Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) This fund is designed to promote the creation of new businesses and the provision of expansion capital to early stage businesses. The imbewu Fund aims to cultivate a culture of entrepreneurship by offering debt, quasi-equity and equity finance of up to R20million. Imbewu Entrepreneurship Finance would provide risk capital to new businesses and to early stage businesses owned and managed by black people. BEE applicant should be actively involved in the business Minimum black ownership of 50.1% Industry experience in consortium i.e. from BEE party or non-bee partners NEF mentorship programme, participation is obligatory Capital structure should be sustainable. NEF to provide shortfall in equity/quasiequity capital Business with clear value sustainable business model Business should employ minimum of 5 people Maximum NEF funding of R5m The NEF investment horizon is 5 to 7 years NEF will target a nominal pre-tax IRR of between 12% to 18% on its funding Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement 113

115 Website Projects submitted by us: Possibility of co-funding (private or public sector) abid/231/default.aspx 114

116 Entity: : Date (if closedend): Persons Interviewed: Details Application National empowerment Fund (NEF) Procurement Finance (under the imbewu Fund) West Block, 187 Rivonia Road Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) This fund is designed to promote the creation of new businesses and the provision of expansion capital to early stage businesses. The imbewu Fund aims to cultivate a culture of entrepreneurship by offering debt, quasi-equity and equity finance of up to R20 million. Imbewu s procurement finance product is a debt product aimed at financing working capital requirements associated with procurement contracts. The product enables BEE groups to access preferential procurement opportunities whilst simultaneously providing mechanisms aimed at mitigating NEF investment risk. Primarily short to medium term debt product Repayment terms matched to contract terms NEF funding generally limited to R10m Active BEE management participation Minimum black ownership of 50.1% Industry knowledge within the Borrower s management structure NEF will seek to co-finance with commercial banks to mitigate risk NEF reserves the right to oblige applicant to participate in the NEF mentorship programme Website Projects submitted by us: Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement Possibility of co-funding (private or public sector) d/233/default.aspx 115

117 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund (NEF) Project finance(under the Corporate Fund) West Block, 187 Rivonia Road Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) The Corporate fund provides capital to Black owned and managed enterprise, and black entrepreneurs who are buying equity shares in established white owned enterprises, project finance and BEE businesses that are or with to be listed on the JSE. Project finance provides capital of R5m to R25m per project for BEE seeking to participate in medium sized green-fields projects with total funding requests of between R10m and R200m. Minimum 25.1% BEE shareholding Investment instruments to include debt, equity and mezzanine finance in support of BEE BEE specific financial contribution assessed on a case by case basis NEF exposure to the project not to exceed 50% of total project costs Proven management experience within consortium Active BEE involvement in investee companies Debt funding raised from the market to match equity funding provided by NEF and other project sponsors NEF funding limited to R25m NEF investment horizon is 5 to 10 years Security to include personal suretyship Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation 116

118 Website Projects submitted by us: Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement Possibility of co-funding (private or public sector) 35/Default.aspx 117

119 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund (NEF) Rural and Community Development (under the imbewu Fund) West Block, 187 Rivonia Road Morningside P.O. Box 31, Melrose Arch, Melrose North, 2076 Tel: (011) This fund is designed to promote the creation of new businesses and the provision of expansion capital to early stage businesses. The imbewu Fund aims to cultivate a culture of entrepreneurship by offering debt, quasi-equity and equity finance of up to R20 million. The rural and community development projects facilitate community involvement in projects promoting social and economic upliftment. In accordance with the BB-BEE Act, it aims to increase the extent to which workers, cooperatives and other collective enterprises own and manage business enterprises. Also it supports the BB-BEE Act objectives of empowering local and rural communities. Involvement of black managers at a senior operational level as owners Active presence of black investors at board level, including women, as owners Substantial ownership by black employees Joint ventures between black and non- black partners with the objective of skills transfer Minimum BEE shareholding of 50.1% NEF will invest using debt, equity and quasi-equity instruments NEF will target a nominal pre-tax IRR of 10% to 12% NEF funding generally limited to R20m The NEF investment horizon is 7 to 10 years Further, the merits of the application for funding will be qualified in terms of: Commercial viability of the project Compliance with all relevant laws and regulations Black managerial and operational involvement Percentage of black ownership or interest Return on investment Job creation Geographic location of business (rural/urban/disadvantaged area) Black women empowerment Community involvement 118

120 Website Projects submitted by us: Possibility of co-funding (private or public sector) 6/Default.aspx 119

121 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund Special Projects Fund Unutilised NEF funding = R 1 Billion N/A Bothwell Manikai Thoba Vokwana Zipho Duze Mr Thoba Vokwana Tel: +27 (11) Fax: +27 (11) vokwanat@nefcorp.co.za West Block 187 Rivonia Road Morningside 2057 Dhesegan Govender Greg Barnes 22 July 2011 Compliance with South African legislation (BBBEE) BEE ownership of 25.1% BEE partner must have individual involvement in the project Commercially viable projects/business plans Exclusions: Property Development, Mining Exploration phase, Defence and moral reprehensible projects (i.e. gambling, adult entertainment, etc.) Empowerment mandate is primary security/collateral, etc. is secondary in advancing funds Projects submitted by us: No cross-border funding available unless products are manufactured in South Africa Investment range to be confirmed by the NEF available for feasibility studies and early stage projects. Projects are evaluated on a business case feasibility basis, should the business case be commercially viable and the NEF s mandate is achieved the project could qualify for funding. 120

122 Entity: : Date (if closedend): Persons Interviewed: Details Application National Empowerment Fund Umnotho Fund Undisclosed N/A Bothwell Manikai Thoba Vokwana Zipho Duze Mr Thoba Vokwana Tel: +27 (11) Fax: +27 (11) vokwanat@nefcorp.co.za West Block 187 Rivonia Road Morningside 2057 Dhesegan Govender Greg Barnes 22 July 2011 Compliance with South African legislation (BBBEE) BEE ownership of 25.1% BEE partner must have individual involvement in the project Commercially viable projects/business plans Exclusions: Property Development, Mining Exploration phase, Defence and moral reprehensible projects (i.e. gambling, adult entertainment, etc.) Empowerment mandate is primary security/collateral, etc. is secondary in advancing funds Investment range of R3 million to R75 million available for Acquisition Finance and Growth Finance Co-funding available for New Venture Finance (maximum participation of 50%) available is a blend of equity, senior debt, mezzanine capital and preference shares. Projects submitted by us: Projects are evaluated on a business case feasibility basis, should the business case be commercially viable and the NEF s mandate is achieved the project could qualify for funding. 121

123 Entity: : Date (if closedend): Persons Interviewed: Details Application Land Bank Long- term Mortgages Johan van der Merwe (Central & Coastal KZN) Mark McKee (Acting Area Manager) Mark McKee Tel: (033) Fax: (033) mrmckee@landbank.co.za 133 Church Street Pietermaritzburg 3201 KwaZulu-Natal The Land Bank is a specialist agricultural bank guided by a government mandate to provide financial services to the commercial farming sector and to agri-business and to make available new, appropriately designed financial products that would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds Long-term mortgage loans are fixed installment loans for capital expenditure. Loans are utilised for the purchase of land, the purchase and installation of machinery and equipment, fixed asset improvements, water project schemes and other agriculturerelated capital expenditure. Website Projects submitted by us: Security for such a loan from Land Bank may consist of: Mortgage bonds over fixed and movable assets Covering bonds over fixed and movable assets Cession of debtors Cession of unpaid share capital (co-operatives) Cession over insurance policies Suretyship Interest rates and the cost of long-term mortgage loans are determined as follows: Interest rates are quoted nominal annual compounded monthly (NACM) Interest rates are not fixed and can be adjusted from time to time over the term of the loan, based on fluctuations in the money and capital markets There are no transaction costs. The term of long-term mortgage loans and repayment are as follows: Term is negotiable usually between 5 and 15 years Repayment is either in annual or monthly installments. Installments can be calculated on an actuarial or "straight-line" basis

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125 Entity: : Date (if closedend): Persons Interviewed: Details Application Website Projects submitted by us: Land Bank Special Mortgage Loan Johan van der Merwe (Central & Coastal KZN) Mark McKee (Acting Area Manager) Mark McKee Tel: (033) Fax: (033) mrmckee@landbank.co.za 133 Church Street Pietermaritzburg 3201 KwaZulu-Natal The Land Bank is a specialist agricultural bank guided by a government mandate to provide financial services to the commercial farming sector and to agri-business and to make available new, appropriately designed financial products that would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds Currently the special interest rate is set at 10%. This rate is fixed for 24 months with intention of keeping it as low as prevailing market conditions allow. The maximum loan at the special interest rate is R If more than R is borrowed, the interest on the amount over R will be charged at the standard rate for longterm loans. The loan term is up to 25 years. People and groups who qualify are: Those who were previously denied their full rights to buy land. Have the potential to become successful farmers. People who own land in towns and cities can get Special Mortgage Bonds. Sons and daughters of people who own farmland can qualify as first time buyers. A person whose spouse owns farmland does not qualify 124

126 Entity: Total Available : Date (if closed-end): Persons Interviewed: Details Application National Housing Finance Corporation Limited Home Ownership Oupa Mareletse Oupa Mareletse Tel Number: +27 (11) Fax Number: +27 (11) Address: info@nhfc.co.za The Isle of Houghton Old Trafford 3 11 Boundary Road Houghton Andre Pottas Greg Barnes The aim of the Home Ownership Division (HOD) is to increase the availability of finance for homeownership to the low and moderate-income earners. Financial intermediaries that operate in areas where individuals are unable to obtain housing finance from financial institutions are allowed to apply to the HOD for Debt - where an intermediary is granted a specific facility against which it can make draws to fund his lending operation. The intermediary repays this loan according to terms set out in its agreement with the NHFC. Advantages of Debt-funding The intermediary receives one or multiple draws of large amounts. The repayment schedule is set for each draw. Minimal amount of paperwork involved when requesting a draw. is available prior to loan origination. Benefits to Client is available to secure commitments for delivery from developers. The intermediary does not have to utilize own funds to originate loans. Intermediary may apply own credit assessment criteria. Intermediary may design own products within certain parameters. Finance may be granted for houses built under PTO's (Permission to Occupy Tribal Land) Facility Amount Under this facility the HOD fund to scale Facility Terms The repayment period is 10 years and the interest rate is linked to the repo-rate. The intermediary must provide a 20% security of the loan amount. Qualification Criteria The HOD will assess the application to determine if such application meets its eligibility credit criteria. Lenders will be able to participate in this home ownership 125

127 initiative provided that they comply to the following general criteria. Eligibility They must subscribe to the aims of the HOD in addressing the housing needs of the target market; They must enjoy a sound reputation and be known for their integrity; They will be required to submit audited financial statements for the last two years for existing business and projections for start-up, where applicable; They need to possess appropriate technological capacity; They should have appropriately trained staff in terms of the specific functions they will be required to perform; A non-bank financial institution should have a total loan portfolio of no less than R500kmil and have a known capacity to handle no less than 500 loans at any one time; and All approved lenders will be required to conform to 20% capital adequacy requirements. Capital Adequacy The capital adequacy will be calculated based on standard originating requirements. Capital adequacy will be determined by: - The status of the amount underwritten e.g. performing, admin arrears, default etc.; The exposure in terms of potential recourse (i.e. originated exposure bought in by NHFC and not paid off by borrowers.); The lenders risk profile, primarily determined by past performance and financial strength Standard capital adequacy factors. At inception, an initial capital adequacy will be based on expected capacity. A minimum of a 20% guarantee of the facility applied for is required from a guarantor acceptable to the NHFC. A larger guarantee may be requested. Granting Terms The signing of a loan agreement; The intermediary takes full responsibility for the loan made available to them; The intermediary shall commit itself to submission of monthly reports against the draw down schedule; HOD shall reserve the right to access and review the records of the company at all times. Website Projects submitted by us: How to Apply In order to apply to participate, the intermediary must submit a formal letter together with a business plan requesting NHFC assistance. The detailed business plan should cover the following: Background history; Mission and objectives of the intermediary; Board and management structure, including key personnel for the intermediary; Policies and systems development; Credit criteria and product profiles; Marketing plans and research studies (where relevant); Projected financial statements: Income Statement, the Balance Sheet and the Cash flow including assumptions; Copies of the audited reports for the past two or three years and management reports, where applicable; and Memorandum and Articles of Association

128 Entity: : Date (if closedend): Persons Interviewed: Details Application Rural Housing Loan Fund (RHLF) Rural Housing Loan Fund (RHLF) Max R2 million per project Mr Jabulani Fakazi (Managing Director) Myriam Kheza (PA) Mr Jabulani Fakazi Tel: +27 (11) Fax: +27 (11) Cell: +27 (82) jfakazi@rhlf.co.za Myriam Kheza mkheza@rhlf.co.za 2rd floor Liberty Gardens 10 South Boulevard Bruma PO Box 645 Bruma 2026 RHLF was set up as a wholesale development finance institution with the mandate of enabling low income earners to access small loans that they could afford to repay. Borrowers use these loans to incrementally improve their housing conditions. As a wholesale finance institution, RHLF facilitate housing microloans through intermediary or retail housing finance lenders. These partners borrow funds from RHLF and on-lend to individual borrowers throughout the rural areas of South Africa, including small towns and secondary cities. Structured Loans Structured loans are the primary product that the RHLF seeks to offer. They are provided to intermediaries to establish, support or develop a housing loan operation addressing the need of individual households. The minimum loan size is R 1 m, unless expressly decided otherwise by the Credit Committee. Structured loans are structured to match the intermediary's underlying product profile, and are disbursed according to the following three criteria: Draw-downs should be structured so that the RHLF's exposure is limited (a higher risk profile should be accompanied by a slower draw-down pattern to allow the RHLF to monitor the performance of the intermediary) Draw-downs should be matched with the intermediary's disbursement of qualifying loans and should not allow the intermediary to build up extensive surplus funding The size of the facility and the draw-down schedule should be in line with the historical growth pattern of the intermediary and its capacity to manage growth, to avoid potential destabilizing effects. The repayment period should match that of the end user. 127

129 Pilot Loans A Pilot Loan is a venture-capital investment instrument designed by the RHLF to support retail lenders to explore new markets ((such as informal earners or lowincome households in un-served rural areas) and/or new products (like alternative loan products with appropriate collection methodologies). It is expected that out of a successful pilot loan, a structured loan will follow. To enable an institution to test new ideas, the RHLF would provide loans (up to a maximum amount of R 2 m) sharing the risk of the operation in a previously agreed proportion that, depending on the interest of the RHLF for the proposal, can be as high as 80%. For the retailer, risk sharing by RHLF results in lower interest rates. Conversely, if the new product or market is successful, the RHLF will share in the benefits obtained. Equity Investments These are investments to help build-up operational capacity of retailers, especially those owned and managed by historically disadvantaged entrepreneurs. The objective with this funding is to assist the institutions to develop sustainable new capacity to strengthen their balance sheets such that they may be able to access finance from sources other than the RHLF for investment in the RHLF's defined target market. Equity funds may be used for small-scale initial support (e.g. opening new rural branches of commercial start-ups), or for gearing other investment capital from the retail lenders' founders or owners to take the company to another level of growth. Website Projects submitted by us: 128

130 Entity: : Date (if closedend): Persons Interviewed: Details Application National Housing Finance Corporation Limited Incremental Housing Oupa Mareletse Oupa Mareletse Tel Number: +27 (11) Fax Number: +27 (11) Address: info@nhfc.co.za The Isle of Houghton Old Trafford 3 11 Boundary Road Houghton Incremental Housing (IH) focuses on smaller lenders that can target lower income earners. The main objective of IH is to extend credit for loans to the low-income strata to increase house value by improving on the house, buying land, developing home-based businesses or providing top-up credit for discount benefit or capital subsidy beneficiaries. IH offers funding to institutions through a Structured Loan Loan size ranges between R2m and R25m based on the potential market, realistic projections and capacity to manage growth, Draws down to match disbursement of end-user loans, and Loan repayment period must match end-user loan profile Private and Public Companies and Small & Medium Banks are eligible for funding if they have: Capacity to provide housing finance, Ability to maintain acceptable recovery rates, Provide finance on a sustainable basis, Comply with the NHFC / Khula Statements of Sound Practice, and Micro-Finance Regulatory Council (M.F.R.C.) membership. The lending company must prove its capabilities through: Skills and competency of the management team, Strength through the company's balance sheet, Ability to contribute 20% of loan capital, 3 year growth and development projections, and Ability to avail funds to the defined target market i.e. Housing finance for households with an income of less than R per month. Facility Terms Repayment period: Maximum of 7 years Interest rate: Linked to the prime rate. Interest rates may be fixed on an annual basis. Moratorium is allowed on interest and capital. The shareholders must contribute a minimum of 20% of the total facility amount Qualification Criteria 129

131 The institution qualifies in terms of form and eligibility criteria, Institution's concept and philosophy in line with the I.H.'s funding objectives, The institution is a (Pty) Limited, Detailed Business Plan covering: Background history, mission, objective(s) of the company; Type of the legal vehicle; and Concept exposition through a marketing strategy, loan pricing and funding structure. Satisfy IH that the institution is sustainable in the long term. The institution has adequate management, systems and policies in line with the I.H. requirements. Size of facility based on: potential market and capacity to manage growth Website Projects submitted by us: Granting Terms The signing of a loan agreement; The institution to take full responsibility for the application of the funds made available to them; All draw downs to match disbursement of end user loans; All loans issued must be for incremental housing purposes; The institution shall commit itself to submission of monthly progress reports against the projections; The institution shall commit itself to an approved tendering procedure in the engagement of external consultants and suppliers for provision of goods and services thereof; The I.H. reserves the right to access and review the records of the company at all times. The I.H. reserves the right to appoint a representative to the company's Board 130

132 LOCAL AND INTERNATIONAL INFRASTRUCTURE FUNDS Fund Information Sheet Entity: : Date (if closedend): Persons Interviewed: Details Future Growth Asset Management Agri-Fund R7.5 billion First closing: September 2010 Final closing: December 2011 Glynnis Jeffries James Howard Rojie Kisten Glynnis Jeffries Tel: +27 (21) Cell: +27 (83) glynnisj@futuregrowth.co.za James Howard Tel: +27 (21) Cell: +27 (82) jamesh@futuregrowth.co.za Application Rojie Kisten Tel: +27 (21) Cell: +27 (83) rkisten@omigsa.com 3rd Floor Great Westerford Building 240 Main Road Rondebosch 7700 Greg Barnes Responsible equity investments in agricultural land, agri-businesses and farming infrastructure. FUND FOCUS AREAS: Row crops (e.g. nuts and maize), Permanent crops (e.g. citrus and deciduous fruit), Timber, Cattle and dairy. The investment model addresses agricultural initiatives that lead to land development and environmental conservation reform, employment, health care, community ownership, housing, education and food security. The South African Government, Department of Rural Development and Land Reform (RDLR), identifies farms to form part of the land reform programme The Futuregrowth Agri-Fund selects suitable farms to buy and empower before final hand-over to the community. Start of Land Reform transfer process: The Government and the Futuregrowth Agri-Fund sign the transfer contract. In approximately 10 years the government will buy the empowered farm from the Futuregrowth Agri-Fund for purposes of land reform. The Fund pays the farmer a market-related price for the land at once (rather than future unsecure payments by the 131

133 Government). The Fund appoints a professional operator to: manage the farm (including all farm workers), and plug the farm into well-developed marketing and Distribution networks. After 5-10 years, and when the farm is running smoothly, the Department of RDLR fulfills the contract and transfers ownership of the land to the community, backed by a World Bank guarantee of the value. Website Projects submitted by us: Upon land transfer, the community can choose to run the farm themselves or continue to employ an operator

134 Entity: : Date (if closedend): Persons Interviewed: Details Application Futuregrowth Asset management Futuregrowth Development Equity R673.8 million Open-ended with an unlimited life James Howard Glynnis Jeffries Thembela Mandla James Howard Tel: +27 (21) Cell: +27 (82) jamesh@futuregrowth.co.za Glynnis Jeffries Tel: +27 (21) Cell: +27 (83) glynnisj@futuregrowth.co.za Thembela Mandla Tel: +27 (21) Cell +27 (82) thembelam@futuregrowth.co.za Website Projects submitted by us: The Fund has a broad risk mandate to participate in equity and related investments in socially responsible projects and businesses or developmental assets in southern Africa. The Composite seeks suitable risk-adjusted returns and tangible developmental impact. It invests mainly in equity and participating instruments, but allows up to 20% in debt instruments. The Composite invests principally in unlisted transactions, but relevant listed instruments are not precluded. The Composite focuses on positive screening for SRIs which provide finance for development and has a bias towards investments that support the development of infrastructure and social services. The Composite seeks to maintain a high degree of exposure to developmental assets. In order to retain adequate liquidity and flexibility, and in the course of managing new investments, asset maturities and sales and fund-flows, the Composite usually maintains a high degree of liquid and/or non-developmental assets. In any event, the Composite will avoid investments whose goods or services are detrimental to the body, spirit or environment. 20Composite% pdf 133

135 Entity: Old Mutual African Infrastructure Investment Fund 2 First Close : 320million USD : Final close : 720 million USD Date (if closedend): Persons Interviewed: Details First close was reached on 30 March Final close will occur within 12 to 18 months of that date Andrew Johnstone (Director) Dhesen Moodley (Vice President) Rojie Kisten (Head of Distribution) Andrew Johnstone Tel: +27 (21) Office Tel: +27 (21) Direct Cell: +27 (82) Andrew.Johnstone@macquarie.com Dhesen Moodley Tel: +27 (21) Office Tel: +27 (21) Direct Cell: +27 (82) Dhesen.Moodley@macquarie.com Application Rojie Kisten Tel: +27 (21) Office Tel: +27 (21) Direct Cell: +27 (83) rkisten@omigsa.com African Infrastructure Investment Managers (Pty) Ltd Colinton House The Oval 1 Oakdale Road Newlands 7700 Cape Town AIIF2 is an innovative initiative that will invest in a diversified portfolio of infrastructure and infrastructure related assets, primarily within Sub-Saharan Africa. The principal objective of AIIF2 is to achieve medium to long-term returns through private sector participation in a diverse range of infrastructure projects within Africa. The investments will be primarily equity and equity related in nature. The form of the funding provided will be structured to match the specific requirements of the project. AIIF2 will seek to invest capital across a range of infrastructure sectors and geographic locations. Investment in assets is likely to range in value from US$20 million to US$100 million, with a maximum investment size of 15% of Total Commitments, which may be increased to 20% with the consent of the investors committee. AIIF2 will target African infrastructure assets that exhibit some of the following characteristics: Provide an essential service to the community 134

136 Have a strategic competitive advantage Require significant capital expenditure Expected to deliver project returns commensurate with the investment risk Predominantly exhibit equity characteristics AIIF2 will focus on infrastructure projects such as roads, airports, power, telecommunications, rail, ports, water and social infrastructure in Africa. Website Projects submitted by us: Opportunities to invest will typically arise in the development and greenfield stages of infrastructure projects or assets, as well as during their expansion, rehabilitation or restructuring. 135

137 Entity: : Date (if closedend): Persons Interviewed: Details Application Old Mutual The Infrastructural, Developmental and Environmental Assets Managed Fund (IDEAS) R2.7 billion Jurie Swart (Head) Makole Maponya (Portfolio Manager) Sean Friend (Portfolio Manager) Makole Maponya Tel: +27 (11) Fax: +27 (21) Cell: +27 (82) mmaponya@omigsa.com Head Office Tel: +27 (21) Fax: +27 (21) Old Mutual Investment Group (South Africa) (Pty) Limited P.O. Box 878 Cape Town 8000 IDEAS aims to invest in assets that are developmental in nature and which contribute to the economic upliftment of disadvantaged communities. IDEAS assets consist predominantly of investments in commercially viable development projects that aim to achieve measurable transformation objectives in South Africa. These broadly include the categories of core infrastructure, social infrastructure and environmental projects. While the main focus of IDEAS is on South African investment opportunities, the fund s investment strategy also makes specific allowance (to a maximum of 15%) for Southern African Development Community (SADC) regional investments. Only investments that allow for thorough due diligence and the acquisition of a significant stake will be considered. However, great care is taken to ensure the fund remains diversified in its investments. As an Impact Fund it is committed to delivering a commercially acceptable return to investors while simultaneously achieving social and/or environmental objectives. To achieve these objectives, the fund specializes in investment in core (economic), social and environmental infrastructure assets. Social Job creation SMME development Entrepreneurship development CSI Community interaction Labour standards Indigenous people s rights 136

138 Human rights Environmental Carbon footprint Bio-diversity impact Eco-system preservation Water resource management Green building implementation Sustainability Website Projects submitted by us: Governance Transparency Ethics Corporate governance 137

139 Entity: : Date (if closedend): Persons Interviewed: Details entities include the DBSA, FinFund, IFC and various other investors. Fund is managed by Inspired Evolution Investment Management. Evolution One Fund R 700 million Christopher Clarke Zuko Kubukeli Cape Town Christopher Clarke Tel: +27 (21) Fax: +27 (21) Cell: +27 (82) chris@inspiredevolution.co.za 1st Floor Amdec House Silverwood Close Steenberg Office Park Tokai 7945 PostNet Suite 136 Private Bag X26 Tokai 7966 Johannesburg Zuko Kubukeli Tel: +27 (11) Cell: +27 (82) zuko@inspiredevolution.co.za Application 2nd Floor Summit Square 15 School Road Cnr Rivonia & Summit Rd Morningside Sandton The fund is a 10 year late-stage venture and expansion capital fund. Evolution One Fund s investment territory is restricted to southern African SADC countries. Will make equity and equity-related investments in sustainable projects and companies with the aim of not only achieving carbon reductions, but also ensuring the sound environmental, social and economic performance of these investments. The Evolution One Fund will be the bank's first investment in a fund with a specific focus on clean energy and technology investments. Inspired Evolution will prioritise companies that require growth capital, or early stage/start up capital, provided that market adoption can be validated. Key criteria for technology investments includes companies: 138

140 with proven technology/minimized risk where product (market) adoption can be demonstrated with platform application that are immediately scalable with appropriately skilled management teams with proven track records Website Projects submitted by us: Key criteria for project-based investments includes projects: where there is an option to take equity in the developer and/or projects(s) where cost control influence (overheads) can be effected where the developer can demonstrate track record where the pipeline and probability of success can be validated project inputs (feedstock) and off take agreements are in place where technology is proven and there is limited execution risk where the technology provider guarantees are available where technology supply contracts are in place where senior long-term debt is available at the appropriate terms and cost where operator and maintenance agreements are in place. also see: htm 139

141 Entity: : Date (if closedend): Persons Interviewed: Details International Housing Solutions (IHS) International Housing Solutions Fund R 1.8 billion Yankho Chitsime (Deal Maker) Willem Odendaal (Technical Specialist) Joel Rosen (Deal Maker) Yankho Chitsime Tel: +27 (11) Cell: +27 (82) Fax: +27 (11) Yanhko.Chitsime@intlhousingsolutions.com Willem Odendaal Tel: +27 (11) Cell: +27 (79) Fax: +27 (11) Willem.Odendaal@intlhousingsolutions.com Joel Rosen Tel: +27 (11) Cell: +27 (82) Fax: +27 (11) Joel.Rosen@intlhousingsolutions.com Head Office Tel: +27 (11) Fax: +27 (11) infosa@intlhousingsolutions.com Application International Housing Solutions 269 Oxford Road 1st Floor, North Wing Illovo 2196 IHS focuses on residential housing and seeks to partner with financial institutions, real estate developers, private capital groups and local governments to provide equity finance for qualifying projects concentrating on the affordable end of the market. Resources include capital, but also research, risk assessment and technical advisory services to local partners providing housing to low to middle income families. The Investment strategy targets markets with rapid growth in housing demand that is not met by existing supply, accompanied by economic and political conditions supportive of development and private market investments. It is tailored to local market conditions, is formulated by extensive market research, and is shaped by the needs of our investor base. The investment approach includes the following characteristics: A commitment to partner with local companies and organizations to make best use of capacity while minimizing risk of investment 140

142 Website Projects submitted by us: A desire to establish viable communities and not simply generate housing product Diversification across geographies, partners, and tenures 141

143 Entity: : Date (if closedend): Persons Interviewed: Details Vantage Capital Vantage Capital Investment Ian Heron (Senior Advisor) Peter Baird (Senior Advisor) Johannesburg Office: Tel: +27 (11) Fax: +27 (11) Melrose Boulevard First Floor Unit 9B Melrose Arch Johannesburg Cape Town Office: Tel: +27 (21) Application 5th Floor IDS House 8 St George s Mall Cape Town 8001 Vantage Capital Group is a black investment and financial services group. Vantage Risk Capital is looking to invest between R50 million and R350 million in established mid-market and large companies. Vantage Risk Capital s funding may take the following forms Black economic empowerment (BEE) - Vantage Risk Capital s funding can assist BEE partners who lack capital to achieve their ownership objectives in a way which is cost-efficient and equitable. Mezzanine, with its focus on debt-based returns, can minimise the potential equity dilution for BEE participants and reduce the time for BEE investors to enjoy full unencumbered economic ownership of their assets. Replacement capital - Mezzanine is often used to fund the exit of private equity investors in situations where management are seeking to maximise the value of their shareholding following such an exit. Re-leveraging or refinancing - Vantage Risk Capital can fund the re-leveraging of existing private equity transactions, with mezzanine capital often replacing existing shareholder loans provided by the private equity and other leading shareholders. This helps shareholders boost their returns by facilitating an early return of capital while retaining much of the equity upside in a transaction. Expansion capital - Vantage Risk Capital can assist in funding the acquisition of another business or the expansion of an existing business. Mezzanine can be a highly compelling alternative for shareholders seeking to expand their businesses whilst avoiding excessive equity dilution. 142

144 Management buy-out (MBO) and buy-ins (MBI) - Vantage Risk Capital s funding can complement private equity by leveraging private equity capital. In an MBO or MBI transaction Website Projects submitted by us: The Fund will target most industry sectors but will exclude: Primary agricultural businesses subject to significant weather-related volatility; Low-margin, trading businesses; Businesses not complying with local or international labour, environmental and other laws; Businesses selling weapons or munitions; Businesses producing or selling products subject to international bans or phaseouts; Hostile takeovers; Loss-making operational turnaround opportunities; Start-ups such as technology start-ups or junior mining businesses; Alcohol other than wine and beer; and Casinos and gambling. For companies: After-tax profits in excess of R25 million ($3.6 million); A talented and committed management team with performance-based financial incentives; Minimal or manageable technology risk; Product lines with extended life cycles and low obsolescence risk; A diverse mix of products, customers, geographic markets and suppliers; Stable demand for products or services and a defensible market position; Sound historical financial performance and stable, predictable earnings and cash flows; An ability to service the interest and capital repayments with a significant part of the earnings converting into free cash on a normalised long term basis; and, Reasonable security in the assets of the company for the purposes of raising senior debt funding. also see: 143

145 Entity: : Date (if closedend): Persons Interviewed: Details FMO Infrastructure Development Finance Diana Wesselius Diana Wesselius Tel: +31 (0) Fax: +31 (0) d.wesselius@fmo.nl Visitors address Anna van Saksenlaan HW The Hague The Netherlands Application Mail address P.O. Box AB The Hague The Netherlands FMO aims to stimulate private investors to invest in private or public-private infrastructure projects in these countries. Through providing risk capital, the Infrastructure Development Fund removes a definite risk for other financiers, which should thus catalyze additional private funds. Through this Fund, FMO may provide various forms of long-term financing (tenors of up to 20 years) for large infrastructure projects. Loans of up to 15.5 million may be extended in euros, US$ or local currencies. Equity investments (only minority shares) may be made of up to 7.75 million. Also feasible are investments in international or multilateral funds that in turn facilitate infrastructure projects as defined by the Fund. The Fund may also supply grants for the development of new projects. These may be used for elements of a project that usually fall to a government (which fails to provide for it), or for covering one-time investments integral to the realization of the project but not contributing to its profitability Infrastructure Development funding is available for infrastructure projects that contribute to the development and/or improvement of social-economic infrastructure (power, telecom, water, transport, environmental or social infrastructure) In evaluating an investment request, the project itself is looked at initially. Important aspects are: commercial viability a sound investment plan a thorough feasibility study and complete analysis of the market transparency according to the principles of corporate governance a respectable environmental policy execution by internationally acceptable social standards. 144

146 Furthermore, the owner or sponsor of the project to be financed is considered. The important factors are that it: is financially healthy has a proven track record is being guided by an expert, experienced and ethical management. The process: Website Projects submitted by us: 1. identifying clients with sound investment plans, often with or through a global or local partner; 2. appraising the plan for financial soundness and multiple bottom line impact. All appraisals include the client s potential positive or negative effect on social, environmental and governance conditions. These are recorded on the so-called FMO scorecard. Appraisal further includes an evaluation of the client s perception of these components and their willingness and ability to address them. We will only proceed with a transaction if the client is committed to ultimate compliance with international standards; 3. preparing the financing proposal for approval by relevant FMO Committees and Management Board. As far as possible, financing structures are tailored specifically to the client s needs and will usually include more than one financial product or service, also based on the multiple bottom line preconditions. By the time a proposal has reached the approval stage, it has already been reviewed and scored against these preconditions; 4. once approved, the contract is prepared and must incorporate social, environmental and governance requirements. In those cases where the client is unequipped to meet these requirements on signing, an action plan is developed. Contracts include clear terms and conditions; 5. monitoring based on the scorecard, progress is monitored throughout the lifetime of the investment. We will step in if action plans are not pursued according to contract; 6. evaluating impact impact does not occur overnight. It takes time. Evaluations are carried out after five years, or on exit from a transaction

147 Entity: : Date (if closedend): Persons Interviewed: Details FMO/ Standard Bank Risk Sharing Facility US$400m fund Diana Wesselius Diana Wesselius Tel: +31 (0) Fax: +31 (0) d.wesselius@fmo.nl Visitors address Anna van Saksenlaan HW The Hague The Netherlands Application Mail address P.O. Box AB The Hague The Netherlands Standard Bank Group (SBG) and the Netherlands Development Finance Company (FMO) have signed a Risk Sharing Facility worth US$400-million. This facility, which allows the banks to provide additional financing to especially smaller and medium sized enterprises primarily in Africa as well as other emerging markets, can provide loans between US$7.5m and US$40m. Participations under this agreement can be in USD, EUR or in local currencies. The tenor will range between 4 and 10 years. From the FMO website (may be altered taking into account Standard Banks input): In evaluating an investment request, the project itself is looked at initially. Important aspects are: commercial viability a sound investment plan a thorough feasibility study and complete analysis of the market transparency according to the principles of corporate governance a respectable environmental policy execution by internationally acceptable social standards. Furthermore, the owner or sponsor of the project to be financed is considered. The important factors are that it: is financially healthy has a proven track record is being guided by an expert, experienced and ethical management. The process: 146

148 Website Projects submitted by us: 1. identifying clients with sound investment plans, often with or through a global or local partner; 2. appraising the plan for financial soundness and multiple bottom line impact. All appraisals include the client s potential positive or negative effect on social, environmental and governance conditions. These are recorded on the so-called FMO scorecard. Appraisal further includes an evaluation of the client s perception of these components and their willingness and ability to address them. We will only proceed with a transaction if the client is committed to ultimate compliance with international standards; 3. preparing the financing proposal for approval by relevant FMO Committees and Management Board. As far as possible, financing structures are tailored specifically to the client s needs and will usually include more than one financial product or service, also based on the multiple bottom line preconditions. By the time a proposal has reached the approval stage, it has already been reviewed and scored against these preconditions; 4. once approved, the contract is prepared and must incorporate social, environmental and governance requirements. In those cases where the client is unequipped to meet these requirements on signing, an action plan is developed. Contracts include clear terms and conditions; 5. monitoring based on the scorecard, progress is monitored throughout the lifetime of the investment. We will step in if action plans are not pursued according to contract; 6. evaluating impact impact does not occur overnight. It takes time. Evaluations are carried out after five years, or on exit from a transaction

149 Entity: : Date (if closedend): Persons Interviewed: Details Application African Development Bank Group (AfDB) Mr A D Beileh Mr A D Beileh Tel: (+216) Fax: (+216) a.beileh@afdb.org 15 Avenue du Ghana P.O.Box Tunis-Belvedère Tunisia The African Development Bank (AfDB) Group s mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent s economic and social development. With this objective in mind, the institution aims at assisting African countries individually and collectively - in their efforts to achieve sustainable economic development and social progress. It was founded in 1964 and its constituent institutions include: The African Development Bank (ADB), The African Development Fund (ADF) an The Nigeria Trust Fund (NTF). Its headquarters are situated in Côte d Ivoire. Its Authorized Capital at December 31, 2010 total: Unit of Accounts (UA) billion. South Africa is a regional member country. The various stages from country programming to project completion and post evaluation are known collectively as AfDB Group's project cycle. Given the number of poor countries, AfDB Group s project cycle activities are generally very active and painstaking, starting from ADF 3-yearly replenishment cycles with notably country resource allocations and core operational mandates for the replenishment cycle. In summary, a development strategy is drawn up between AfDB and the borrowing regional country, identifying the project and appraising it, before it is approved, implemented and evaluated. Among the numerous other financial products, loans or grants may be allocated. Recently, Eskom has benefitted from a 365 million USD loan provided by the Bank, along with scientific and technical expertise. However, technically, no funds are identified on the website. Website Projects submitted by The funding is likely to be channeled through government and is not able to be accessed directly by private projects

150 us: Fund Information Sheet Entity: China Construction Bank (CCB) : Date (if closedend): Persons Interviewed: Details Application Tel: +27 (11) Fax: +27 (11) China Construction Bank (CCB) 5th Floor 95 Grayston Drive Sandton 2192 China Construction Bank (CCB) is a state-owned commercial bank headquartered in Beijing, China. The Johannesburg Branch was registered by the South African Reserve Bank in the year The CCB concentrates on offering Merchant, Wholesale and Investment Banking products and services to the South African business community. Corporate Banking Products and Services include: Call Loans, Fixed Loans, Syndication, Telegraphic Transfers, Trade Finance and guarantees. In 2009, the CCB loaned 50 million dollars to the IDC. Website Projects submitted by us: 149

151 Entity: : Date (if closedend): Persons Interviewed: Application China Investment Corporation (CIC) Tel: +86 (10) Fax: +86 (10) invest@china-inv.cn New Poly Plaza 1 Chaoyangmen Beidajie Dongcheng District Beijing China Investment Corporation (CIC) is an investment institution established as a wholly state-owned company headquartered in Beijing and established in On establishment it acquired $200 billion of China s foreign exchange reserves and thus formed the foundation of its registered capital. CIC selects investments based on established investment principles and values. CIC usually does not take a controlling role or seek to influence operations in the companies in which it invests. CIC s fundamental approach is to hold, manage, and invest its mandated assets to maximize shareholder s value. While every investment is unique, CIC believes in the importance of having a longterm vision and, as a result, it is committed to investing for the long-term. As a commercial investment institution, CIC has full operational independence and makes its investment decisions based on its assessment of economic and financial objectives. CIC s investments are not limited to any particular sector, geography, or asset class and include equity, fixed income, and alternative assets. Investment policy CIC undertakes its investments based on a set of principles: CIC selects investments based on economic and financial objectives, and an assessment of the commercial return. CIC allocates capital and assets within the given risk tolerance of the owner to maximize shareholder value. CIC usually does not seek an active role in the companies in which it invests nor attempts to influence those companies operations. CIC seeks long-term, stable, sustainable, and risk-adjusted return. From its inception, CIC has emphasized the importance of operating responsibly from how it runs itself and treats employees to how it selects investments. It is committed to operating responsibly and in full compliance of the laws and regulations in each of the jurisdictions in which it invests. CIC strives to contribute to the 150

152 prosperity and development of local economies Website Projects submitted by us: No South African office and no funds identified. It would require a project in excess of $100million to make it worth approaching them

153 Entity: : Date (if closedend): Persons Interviewed: Details Application CitiBank Gwenda Lewis Gwenda Lewis Tel: +27 (11) Fax: +27 (11) West Street Sandown 2196 Johannesburg Citi Bank was founded in 1812 in New York. In South Africa, it is the largest foreign bank and the sixth largest commercial bank, with capital and reserves representing over one quarter of the capital of all foreign banks operating in the country. There are three branches in South Africa; Johannesburg, Cape Town and Durban. Citi Bank provides a broad range of financial products and services, including corporate finance, cash management, corporate and investment banking and also treasury services such as foreign exchange, derivatives and trade finance to large local corporations and multinationals. Citi Bank also provides a wide range of lending services and project and structured finance. Website Projects submitted by us: 152

154 Entity: : Date (if closedend): PROPARCO Agencie Francaise Development Loan Finance Undisclosed N/A Sophie Le Roy Sophie Le Roy Tel: +27 (11) Fax: +27 (11) proparcojohannesbourg@afd.fr P.O. Box Sandton 2146 Dhesegan Govender Greg Barnes N/A PROPARCO finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable. Its sectoral strategy is tailored to the level of a country s development and focuses on the productive sector, financial systems, infrastructure and equity investment. PROPARCO invests in a geographical area ranging from major emerging countries to the poorest countries, in particular in Africa, and has high-level requirements in terms of Social and Environmental Responsibility. PROPARCO has a wide range of financial instruments to meet the specific needs of private investors in developing countries (loans, equity, guarantees and financial engineering). PROPARCO funding is open to all private businesses and all projects dealing with the private sector except for those dealing with real estate or short-term projects PROPARCO usually provides funding between 2 and 100 million Euros The project promoters must have substantial experience in the sector or have as a partner a company which is internationally recognized as being an expert in the area. The project s promoters must provide a minimum capital of approximately: 30% of the cost of the project in the case of an expansion program, 40% of the cost of the project in the case of a new project (Greenfield). PROPARCO proposes a wide range of loan products to its clients : senior loans junior loans mezzanine debt subordinated loans PROPARCO offers its customers several types of loan : Loans proposed directly to investors with or without bank guarantees or restricted covenants, Project loans are in most cases co-financed with other bilateral or multilateral financial institutions, Loans are offered to financial institutions in several different forms and are adapted to market needs and the specific requirements of the institution, Framework agreements define the terms and conditions and authorise the 153

155 Projects submitted by us: Website: utilisation of a loan for projects that have been pre-approved by the Company, Delegated credit lines, which provide medium and long-term resources, and which may be drawn down in tranches, are adapted based on the needs of the customer. Refinancing credit lines

156 Donor Funds United States Agency for International Development (USAID) Department for International Development (DFID) Australian Agency for International Development (AusAID) Canadian International Development Agency (CIDA) Swedish International Development Authority (SIDA) Swiss Agency for Development and Cooperation (SDC) Fund Information Sheet Entity: : Date (if closedend): United States Agency for International Development (USAID) Tel: +27 (12) Fax: +27 (12) USAID/South Africa P.O. Box 43 Pretoria 0027 South Africa An independent federal government agency, which supports long-term and equitable economic growth and advances U.S. foreign policy objectives Provides assistance to Sub-Saharan Africa, Asia, Latin America and the Caribbean, Europe and Eurasia, and The Middle East. USAID has the following programs in South Africa: Governing justly and Democratically Community court program, which has improved management efficiency and significantly decreased case backlogs Women's Justice and Empowerment Initiative, which helps victims of rape. Health 155

157 Provides treatment and care for HIV/AIDS patients and also builds management and technical capacity to address the epidemic. Education Works with the Department of Education to develop new school curricula and training methods, boost students' abilities in math and science, and train teachers at o Working with the Further Education and Training institutions, to ensure industry-relevant career paths for students and increase the interaction between graduates and the private sector firms that employ them. Economic Growth Provides technical assistance and training to help black-owned and - managed small businesses Projects submitted by us: Website: USAID also increased access to finance by signing a $34-million Development Credit Authority Guaranty Agreement with the First National Bank. The loan facility targets black farmers and agribusinesses, providing commodity input finance and long-term land and infrastructure improvement loans

158 Entity: : Date (if closedend): Website: Projects submitted by us: Department for International Development (DFID) Tel: +27 (12) Fax: +27 (12) DFID South Africa 2nd Floor Sanlam Building 353 festival Street, Cnr Arcadia Hatfield 0083 Pretoria Operates through the Regional plan for Southern Africa strategies to work on growth and poverty and plans to contribute 100 million to poverty reduction in Southern Africa over the next five years. Covers regional programs in Southern Africa and bilateral programs in South Africa, Lesotho and Angola. Supports the Regional Economic Communities (RECs) such as the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), and the Southern African Customs Union (SACU)

159 Australian Agency for International Development (AusAID) Entity: Fund Name: Total Available : Date (if closedend): Key Contact Key Tel: +27 (12) Contact Fax: +27 (12) Orient Street Arcadia Pretoria 0083 Relationshi p Parameters : Website: Projects submitted by us: Australian assistance to support progress towards the Millennium Development goals Total Official Development Aid in Africa is $116.4m Approximately $60 m African regional program estimate for Works with World Food Programme, UNICEF, the World Bank and the British Department for International Development to deliver aid in Africa. st 158

160 Entity: : Date (if closedend): Website: Projects submitted by us: Canadian International Development Agency (CIDA) Tel: Toll free: Fax: Promenade du Portage Gatineau, Quebec K1A 0G4 Between , CIDA disbursed $9.9m for projects and initiatives in South Africa: $9.9 million. Support capacity building that strengthens service delivery to South Africa s most disadvantaged citizens, focusing on the following key areas: - HIV and AIDS - Governance - Rural Development - Regional Cooperation 159

161 Entity: : Date (if closedend): Projects submitted by us: Website: Swedish International Development Authority (SIDA) Tel: Fax: sida@sida.se Valhallavägen Stockholm The overall goal of Swedish development cooperation is to contribute to poverty alleviation and reducing injustice in partner countries Not all Swedish official development assistance is channelled via SIDA. Of Sweden's total budget for development cooperation in 2006, SEK 15,4 billion, or 53%, was channelled via SIDA

162 Entity: : Date (if closedend): Projects submitted by us: Website: Swiss Agency for Development and Cooperation (SDC) Tel: Fax: pretoria@sdc.net Unit 4 Parkfield Court 1185 Park Street (East) Hatfield Pretoria Supports a bilateral cooperation programme with South Africa. The Regional Programme Southern Africa (RPSA) represents a shift towards regional priorities, aimed at reaching regional cooperation Three domains of intervention define the activities carried out as part of the Regional Strategy, namely - Good governance, - HIV/AIDS - Sustainable use of natural resources. _in_southern_africa 161

163 Entity: : Date (if closedend): Projects submitted by us: Website: African Development Bank (AfDF) Mr. A Beileh (Director) Mr. A Beileh Tel: (216) / Fax: (216) a.beileh@afdb.org Operations Department, South 1 Region African Development Bank Group Temporary Relocation Agency (TRA) 15 Avenue du Ghana P.O.Box , Tunis-Belvédère, Tunisia Support for infrastructure services, especially energy, is a major focus of the African Development Bank s Country Strategy Paper for South Africa. The Bank will seek to address the energy problem not only by providing assistance to South Africa but also regional approaches. Of note is that South Africa has made limited use of development assistance and donor resources because it has ample internal resources and is also able to easily access international capital markets at relatively competitive prices. The South African government has thus directed the Bank to focus its lending operations on the SMEs and the private sector. Other factors that have constrained the Bank s operations in South Africa include competition from other donors, especially those offering concessionary resources and the lack of a local presence in the country. To make its operations in the country more effective, the AfDB in the last quarter of 2008 concluded an agreement with the Government of South Africa for the opening a Bank regional office in Pretoria 162

164 Entity: : Date (if closedend): Projects submitted by us: Website: Development Bank of South Africa (DBSA) Tel: +27 (11) Fax: +27 (11) Headway Hill 1258 Lever Road Midrand The DBSA Development Fund provides grant funding and co-funding for projectlevel capacity building projects in South Africa. Grants are also approved for feasibility studies and BEE initiatives. The Bank offers numerous combinations of financial instruments structured to fit the needs of the client, and lending focused on infrastructure and commercially viable projects. The Bank also provides credit lines to other development finance institutions and uses the following currencies: Dollar, Euro and Rand. Long-term lending is generally for more than five years. The Bank underwrites guarantees and its credit enhances projects and/clients to attract better financing terms and conditions. Underwriting guarantees is central to capital markets development strategies

165 Entity: : Date (if closedend): Website: East African Development Bank Tel: /5 Fax: admin@eadb.org The Director General East African Development Bank 4 Nile Avenue P O Box 7128 Kampala, Uganda Offers financial products, which are availed in both local and foreign currencies. Terms and conditions are as follows: Amount - Medium and Long Term Loan, US Dollar 50,000 to 10,000,000 - Short Term Loan, US Dollar 50,000 to 400,000 - Asset Leasing, US Dollar 20,000 to a maximum limit that depends on client needs - Trade Finance, US Dollar 50,000 to 5,000,000 - Investment in equity, subject to a maximum US Dollar 500,000 per entity Repayment - Medium and Long Term loans, including loan guarantees, average 8 years and a maximum 15 years repayment period - A grace period of up to two years is allowed for project preparation and implementation depending on the nature - Short-term working capital loans are repayable within a maximum period of 24 months. Exposure : Limited to the following: - The total amount of loan granted by EADB together with other eventual commitments under a guarantee in favour of the project does not exceed 50% of the project net worth. - Equity investment is selective and EADB shareholding will normally not exceed 25% of the authorized share capital of the project. Security Includes, but not limited to, the following - A legal charge on movable and immovable assets - Bank and Insurance Guarantee, - Promissory Notes, Shareholders' Guarantee 164

166 Entity: : Date (if closedend): International Finance Corporation (IFC) Vengahi Chigudu (Associate Investment Officer) Vengahi Chigudu Tel: +27 (11) vehigudu@ifc.org 14 Fricker Road Illovo 2196 Projects submitted by us: Website: The Carbon Finance Unit serves as IFC's in-house resource for all carbon finance-related issues, providing services directly to buyers and sellers. The Unit leads in the development of new products, and serves as an advisor on a variety of products and services to support private sector participation in the evolving carbon market. IFC is well-positioned to assist project sponsors with participation in the rapidly growing market for 'carbon credits'. Through the Carbon Finance Program, IFC contributes to the development of an important new market for environmental services. The Carbon Finance Unit brings IFC's extensive experience in project finance to manage long term and credit risks in emerging markets. Carbon Finance products and services include: Finance Products and Services - Carbon Delivery Guarantee - Monetization of future cash flows from sales of carbon credits - Debt and equity for carbon rich products and businesses - Work with Financial Intermediaries and municipalities to help aggregate carbon credits from their various investment operations 165

167 INCENTIVES AND REBATES Fund Information Sheet Entity: : Date (if closedend): Persons Interviewed: Details Application DTI Trade, Export and Investment Financial Assistance (Incentives) 1. Foreign Film & Television Production Incentive 2. SA Film & TV Production and Co-production 1. R20 million 2. R10 million but guidelines state R20 million 1. 1 Feb Feb The Enterprise Organisation: Postal address: The Enterprise Organisation Private Bag X86 Pretoria 0001 Physical Address: the dti Campus 77 Meintjies Street Sunnyside Pretoria 0002 Website: Call Centre: Application for Provisional Certificate - Form A 2. Application for Provisional Certificate - Form A This incentive scheme is only available to foreign owned qualifying productions with Qualifying South African Production Expenditure (QSAPE) of R12 million and above. Eligibility requirements for the shooting schedule for productions with QSAPE of R12 million to R99,999,999. At least 50% of the principal photography schedule must be filmed in South Africa. A minimum of four weeks of the principal photography must be filmed in South Africa. The SA Film & TV Production and Co-Production Incentive is only available to qualifying South African productions and official treaty co-productions with total production budgets of R2,5 million and above. This incentive provides financial assistance to local productions in the form of a rebate of up to 35% of the Qualifying South African Production Expenditure (QSAPE). The rebate will be capped at R10 million. An applicant must be a Special Purpose Corporate Vehicle (SPCV) incorporated in the Republic of South Africa solely for the purpose of the production of the film or television project. An applicant must be the entity responsible for all activities involved in making the production in South Africa and must have access to full financial information for the whole production worldwide. Only one entity per film production, television drama or documentary series can be eligible for the incentive. The following formats are eligible: feature films, tele-movies, television drama series, documentaries and animation. An applicant must be a Special Purpose Corporate Vehicle (SPCV) incorporated in the 166

168 Website Projects submitted by us: Republic of South Africa solely for the purpose of the production of the film or television project. The SPCV and parent company (ies) must have a majority of South African shareholders of whom at least one shareholder must play an active role in the production and be credited in that role. An applicant must be the entity responsible for all activities involved in making the production in South Africa and must have access to full financial information for the whole production. Only one film production, television drama or documentary series per entity is eligible for the incentive. The following formats are eligible: feature films, tele-movies, television drama series, documentaries and animation

169 Entity: : Date (if closedend): Persons Interviewed: Details Application DTI Production Incentive (PI) Undisclosed Until 31 March 2015 Mr Joy Balepile (Programme Manager) Administered by the IDC Mr Joy Balepile Tel: +27 (11) / (11) Fax: +27 (11) joyb@idc.co.za The PI is a market-neutral incentive offered to the sub-sectors listed below, resulting in an incentive benefit equal to 10% for the year ending March 2011 of a company s Manufacturing Value-Addition (MVA). The benefit thus determined will be referred to as the benefit ceiling, which is the maximum amount that will be available to an applicant in a specific financial year. The MVA calculation must be based on audited financial statements not older than 15 months.the PI flows from the implementation, by the Department of Trade and Industry (the dti), of customised sector programmes (CSPs) for the clothing, textiles, footwear, leather and leather goods industries. The CSPs are aimed at creating sustainable capabilities and employment in these industries. The main objective of the CSPs is to assist industry in upgrading processes, products and people to re-position it so it competes effectively against other low-cost-producing countries. The PI is aimed at structurally changing the clothing, textiles, footwear, leather and leather goods manufacturing industries by providing funding assistance for these sectors to invest in competitiveness improvement interventions. The PI consists of two components, namely an upgrade grant facility and a facility consisting of an interest subsidy for working capital. The guidelines for the PI may be amended from time to time as deemed necessary by the CTCP Desk. These amendments will be published on the CTCP website and will be of immediate effect upon publication. Where the guidelines lend themselves to varying interpretations or do not deal with a specific subject matter, interpretation by the CTCP Desk should be requested. Such interpretation will be decisive and final, and may from time to time be published on the CTCP website. Approval of applications will be subject to the availability of funds. The CTCP Desk will endeavour to communicate to the public, in good time, should there be a likelihood of no funds being available for allocation to new approvals. The applicant must be a registered legal entity in South Africa in terms of the Companies Act, 1973 (Act No. 71 of 1973 as amended), the Close Corporations Act, 1984 (Act No. 69 of 1984 as amended), or the Cooperatives Act, 2005 (Act No. 14 as amended). Section 21 companies or not for- profit-or-gain organisations are specifically excluded from applying. The applicant must be a taxpayer in good standing and must provide a valid tax clearance certificate before the grant will be disbursed. The operations of the company applying must be classifiable as manufacturing (Standard Industrial Classification (SIC) code 3) in terms of the Standard Industrial Classification of all Economic Activities. 168

170 Website Projects submitted by us: The applicant must comply with the requirements of the Bargaining Council. The applicant must comply with all relevant environmental regulations applicable to its operations. Should the company have any pending litigation against it, the outcome of which may have a material impact on the company s financial position, then this needs to be brought to the attention of the CTCP desk at the time of submitting the application

171 Entity: : Date (if closedend): Persons Interviewed: Details Application Website Projects submitted by us: DTI Section 12i Tax Allowance Incentive (12i TAI) Ms Francisca Strauss (Chief Director) Ms Francisca Strauss Tel: +27 (12) fstrauss@thedti.gov.za The DTI Campus Utangamiri Building Block A Sunnyside Pretoria 0002 The incentive offers: R900 million in the case of any Greenfield project with a preferred status; R550 million in the case of any other Greenfield project; R550 million in the case of any Brownfield project with a preferred status; R350 million in the case of any other Brownfield project; An additional training allowance of R per employee may be deducted from taxable income; and A maximum total additional training allowance per project, amounting to R20 million, in the case of a qualifying project, and R30 million in the case of a preferred project. According to the point system, an Industrial Policy project will achieve 'qualifying status' if it achieves at least five (5) of the total 10 points, and a 'preferred status' if it achieves at least eight (8) of the total 10 points. The investment must be: Greenfield project (new project); Brownfield project (expansion or upgrade); or Classified under 'Major Division 3: Manufacturing'. The project should: Upgrade an industry within South Africa (via an innovative process, cleaner production technology or improved energy efficiency); Provide general business linkages within South Africa; Acquire goods and services from small, medium and micro-sized enterprises (SMMEs); Create direct employment within South Africa; Provide skills development in South Africa; and In the case of a Greenfield project, be located within an Industrial Development Zone (IDZ)

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