Manufacturing Competitiveness Enhancement Programme (MCEP)
Objective
To assist manufacturing companies with working capital.
Working Capital Component
Fund sizw: R1 billion (Off-balance sheet)
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.
For more information contact the call centre: 086 069 3888
IDC (Owner)
