SOUTH AFRICAN STEEL FUND BECOMES OPERATIONAL IN JUNE

CAPE TOWN, A 1.5-billion-Rand (about 116.2 million US dollars) fund aimed at improving the competitiveness of the South African steel industry will come into effect next month, says Economic Development Minister Ebrahim Patel.

Briefing the media prior to tabling the Department of Economic Development’s Budget Vote in Parliament here Thursday, Patel said the fund would target the downstream steel sectors, including foundries and valve and pump manufacturers. The fund will be administered by the Industrial Development Corporation (IDC).

The IDC will be making a call for proposals. Essentially, this fund will be open and active from 1 June. We want to go to work immediately. We encourage companies to apply, said Patel, who added that the fund excluded component manufactures which qualify for other incentives.

The Minister said the fund would assist companies looking to expand as well as those which are under pressure from imports.

Some of the investment criteria the government is looking at are businesses which are based in South Africa, while black industrialists will also be considered

Essentially, the fund is intended to be an interest rate subsidy, said the Minister, who disclosed that in the past year, the IDC had facilitated 47 billion Rand worth of investment in the South African economy.

That is 15.3 billion Rand from its own funds and the rest from private investor partners. That is the largest (amount) in its history, said the Minister of the IDC, which is one of the agencies within the department’s ambit.

IDC approvals of assistance to black industrialists totalled 4.7 billion Rand, a growth of 60 per cent from the previous year.

More broadly, approvals for black entrepreneurs totalled 10.8 billion Rand [while] funding for youth would have almost doubled to 2.4 billion Rand and funding for women-empowered businesses grew sharply to 3.2 billion Rand, said Patel.

Source: NAM NEWS NETWORK

SOUTH AFRICAN STEEL FUND BECOMES OPERATIONAL IN JUNE

CAPE TOWN, A 1.5-billion-Rand (about 116.2 million US dollars) fund aimed at improving the competitiveness of the South African steel industry will come into effect next month, says Economic Development Minister Ebrahim Patel.

Briefing the media prior to tabling the Department of Economic Development’s Budget Vote in Parliament here Thursday, Patel said the fund would target the downstream steel sectors, including foundries and valve and pump manufacturers. The fund will be administered by the Industrial Development Corporation (IDC).

The IDC will be making a call for proposals. Essentially, this fund will be open and active from 1 June. We want to go to work immediately. We encourage companies to apply, said Patel, who added that the fund excluded component manufactures which qualify for other incentives.

The Minister said the fund would assist companies looking to expand as well as those which are under pressure from imports.

Some of the investment criteria the government is looking at are businesses which are based in South Africa, while black industrialists will also be considered

Essentially, the fund is intended to be an interest rate subsidy, said the Minister, who disclosed that in the past year, the IDC had facilitated 47 billion Rand worth of investment in the South African economy.

That is 15.3 billion Rand from its own funds and the rest from private investor partners. That is the largest (amount) in its history, said the Minister of the IDC, which is one of the agencies within the department’s ambit.

IDC approvals of assistance to black industrialists totalled 4.7 billion Rand, a growth of 60 per cent from the previous year.

More broadly, approvals for black entrepreneurs totalled 10.8 billion Rand [while] funding for youth would have almost doubled to 2.4 billion Rand and funding for women-empowered businesses grew sharply to 3.2 billion Rand, said Patel.

Source: NAM NEWS NETWORK