IDC is supporting South Africa’s efforts to prepare for the impact COVID-19 will have on our people and economy. The impact on the economy cuts across all economic sectors and includes:
- - Supply chain interruptions
- - Access to raw materials – cost and quality
- - Access to markets – perishable products lost in transit due to longer delivery periods
- - Working capital disruptions – longer lead times
- - Market loss – e.g. export markets constrained by logistics or replaced by production
- - Surge of imports to address the spike in demand
- - Underperforming budgets – impact of extended downtime
- - Reduced Productivity – employees wellbeing: physical and psychological
The IDC’s immediate priority is to focus on sectors critical to:
- - Limit the spread and immediate impact of the virus
- - Support supply chains critical for the economy
LIMIT THE SPREAD AND IMMEDIATE IMPACT OF THE VIRUS: IDC COVID-19 ESSENTIAL SUPPLIES INTERVENTION
|Essential supplies to combat COVID-19||
Financial support to be provided by the IDC includes:
Working Capital Support
An additional R700 million has been provided by the DTIC from the Manufacturing Competitiveness Enhancement Programme (MCEP). The funding will be supplemented by IDC funding and are specifically earmarked to assist suppliers of identified critical goods that are affected by the outbreak of COVID-19. The additional funding will be shared with Small Enterprise Finance Agency (sefa) and National Empowerment Fund (NEF), where IDC will receive R300 million and sefa and NEF will each receive R200 million. The funds transferred to these institutions will be used to fund businesses that fall within the mandate of the institutions and support prioritised products that are required to curtail the impact of the virus.
Sector Specifc Interventions
In addition to support for essential medical supplies, IDC is currently engaging its clients to determine specific sector interventions. For example.
|Sector||Impact / Challenge||Interventions|
|Mining & Metals||
|Agriculture & Agro-Processing||
Post Investment Support
IDC is following up with clients that may be affected by COVID-19. Impact on existing clients is being assessed in terms of:
- - market access, inputs access, increase demand for local products, stoppage of production/services
- - Financial impact – cash flow and client profitability going forward
Recommended interventions will be determined on a case-by-case basis in consultation with our clients.
Corporate Social Investment
IDC has partnered with the respected Gift of the Givers to assist government’s efforts to combat Covid-19. The IDC has previously partnered with the organisation to support several disasters and relief efforts across the country.
The efforts supported by this funding includes:
- - Establishment of temporary medical facilities with beds, protective wear and all equipment necessary for testing and quarantine when necessary.
- - Providing affordable testing
- - Provision of N-95 protective masks, hand sanitisers, disinfectant, sterile gloves, disposable sterile gowns, goggles, visors, ventilators and related equipment (in selected cases); and
- - Drilling boreholes at schools and hospitals, and delivering clean water for drinking and hygiene seven days a week.
In addition, the IDC has donated to the COVID-19 Solidarity Fund established by Government.