Youth Pipeline Development Programme

Objective:

To improve the readiness of potential applicants and thereby increase their probability for IDC consideration.

Qualifying Criteria:

• Available to youth-owned businesses (irrespective of whether it qualifies for Gro-E Youth or not);
• Application must meet IDC sector and funding limits;
• Applicant can be start-up or expansion;
• Pre-BA assistance:
  • Proposal must pass a readiness assessment and in-principle go-ahead from sector SBU Head;
  • To bring an application to bankable stage, including detailed marketing studies, mentoring, technical assessments, sourcing and negotiating with suitable suppliers, costing of products, QS costings, EIAs etc); and
  • Up to 6% of potential investment amount up to a maximum of R350 000.
• Post approval assistance:
  • Pre implementation – for assistance required in meeting/ clearing of CPs (must be specific and be supported by cost estimates, with clear milestones with regards to objectives and skills transfer);
  • Implementation – for in depth mentoring and coaching as well as any other business support required for up to 2 years; and
  • Up to 40% of the investment amount or a maximum of R1.5 million.
• Interventions provided during pre-BA and pre-implementation stages must not take more than 6 months to be completed.

Instruments and Pricing:

• Loans and grants (50:50); and
• Prime; repayable after IDC’s normal debt, subordinated in terms of cash-flow and security.