Manufacturing Competitiveness Enhancement Programme (MCEP)
The Manufacturing Competitiveness Enhancement Programme (MCEP) is designed to promote competitiveness in manufacturing while ensuring job retention in the sector. MCEP consists of:
- Industrial financing loan facilities (the Working Capital Component) managed by the IDC; and
- Production incentive grants administered by the Department of Trade and Industry - for more information on these, please visit the Investment Incentives Website.
Working Capital Component
FUND SIZE: R1 BILLION (Off-balance sheet)
Objective
To assist manufacturing companies with working capital.
Qualifying Criteria
- Only available for working capital requirements;
- Not applicable to start-ups;
- Only applicable to manufacturers under Standard Industrial Classification Code 3, but not auto manufacturers qualifying for AIS or clothing and textile manufacturers qualifying for CTCP;
- Applicant may not contemplate workforce reductions during the term of the facility;
- Applicant required to achieve BBBEE Level 4 within a reasonable period, (usually 18 months); and
- MCEP funds are blended at a leverage level of at least 20% funding from IDC.
Instruments and Pricing
- Working capital loans (including revolving credit facility);
- Limited to R50 million per transaction or applicant? and may revolve depending on the applicant’s circumstances;
- It is priced at 4% fixed;
- Maximum repayment period is 48 months, including moratoria, etc;
- First drawdown within 6 months from approval date; and
- No fees apply.
- Region:
Africa
- Country:
South Africa