Clothing, Textiles, Leather & Footwear Competitiveness Scheme

The Clothing, Textiles, Leather & Footwear Competitiveness Scheme is a preferential interest rate scheme set up to help improve the competitiveness of manufacturers in the sector.

Applicants can apply for funding for plant and equipment or supporting technology that will result in a substantial improvement in competitiveness. However, second-hand plant and equipment will only be considered if it is current state-of-the-art technology or where it forms an incidental part of a larger capital upgrade.

Plant replaced through the upgrade must be scrapped or put to alternative use to the satisfaction of IDC and may not be sold into markets where it can potentially be used to compete with the South African industry.

New (greenfield) projects that will be internationally competitive also qualify.

Working capital loans or revolving credit to fund increased working capital requirements are available. However, the increased working capital must be integral to the business and result in improving the company’s competitiveness.

Applicants must demonstrate sustainable competitiveness, with active programmes in place to achieve best practice in operational excellence.

Applicants’ projected balance sheet, including proposed IDC funding, must have an acceptable ratio of owners’ funds to total assets.

• Minimum loan amount of R1-million; and
• Maximum of R40-million per project.

Loans will be priced at prime minus 5% for the full period of the loan and the maximum term of the loan will be seven years for capital equipment and four years for working capital. Revolving credit will be renewed annually.

Funding is subject to the availability of remaining funds under the scheme.