Industry Development Corporation (IDC)

BEE Procurement Opportunities within the IDC

To access IDC Tenders visit www.idc.co.za/tenders.asp

IDC Standard Terms and conditions of Tender

• Companies to submit their credentials relating to capacity, experience and BEE status.
• Proposals are to be held valid and binding for 90 days from closing date of submissions (calculated from, but not including, the due date).
• The subject and return date thereof must also be endorsed on the envelope.
• No proposals received by telegram, e-mail or facsimile or any other format except as requested below will be considered.
• Where a proposal is not in the tender box at the time of the tender closing, such tender will be regarded as a late proposal. Late proposals shall not be considered.
• Amended proposals may be sent in an envelope marked "Amendment to Proposal" and should be placed in the tender box before the closing time.

Failure to comply with any of the conditions as set out above will invalidate the proposal.Important Notice: Please include your valid Tax Clearance and BEE Rating Certificate.

Services within the IDC that promote BEE

Our approach to Corporate Social Investment(CSI) has been guided by the Urban Renewal Programme (URP) and the Integrated Rural Development Programme(IRDP) announced in the State of the Nation Address 2001.

The IDC’s CSI strategic framework targets underdeveloped rural areas, particularly in rural communities where access to CSI funding is minimal. These programmes aim to address poverty in parts of the country where the largest concentration of underdevelopment is found, particularly in areas identified under the Integrated and Sustainable Rural Development Programme (ISRDP).

The programmes were established to alleviate poverty in acutely underdeveloped regions.

Our CSI programme focuses on assisting special need areas within these regions. It is also involved with projects that support women and people with disabilities.

When we become involved in a project, we adopt a holistic view, taking a 360-degree approach by offering additional help in the form of on-the job-training, advice concerning business organisation and marketing as well as follow-on support.

CSI Investments focus on:

Making a fundamental contribution to rural development
Helping individual projects develop into business cooperatives
Using our internal resources to supervise projects that we fund
Assisting projects that have the potential to develop and qualify for IDC business funding

Preferred investment choices include:

Income generating projects
Cooperatives
Local community tourism projects
Agricultural projects
Arts and crafts projects

CSI Investment Initiatives focus on:

Community development programmes organised by local organisations, NGOs and non-profit groups.

We have implemented a plan to liaise with the targeted district municipalities in terms of ISRDP and established a database of non-governmental and community economic development projects in dire need of financial support in the poorest municipal areas. The IDC is working with the Kgalagadi municipality in the Northern Cape, Maluti, a Phofung municipality in the Free State and Ugu district municipality in KwaZulu-Natal.

We are currently supporting 25 poverty alleviation projects. We have established strategic partnerships with all these projects in order to heighten their impact and leverage the necessary funding. One such project is the Nguni Cattle Project.

Nguni Cattle Project:

This involves the introduction of Nguni cattle to economically depressed areas. Initiated in the Eastern Cape with the University of Fort Hare, the programme has now expanded to Limpopo and North West Provinces under the custodianship of the provincial government and in collaboration with local universities. To date, 30 communities have received cattle for breeding and eventual commercialisation. Click here for more information.

IDC and the BEE

Balanced, sustainable economic growth can only be achieved through the participation of all its citizens. We fully support the Government’s BEE policies and increased focus on broad-based, value creating empowerment and have incorporated them into all our activities. Emerging entrepreneurs have a key role to play in the development of the economy. We have adjusted the way we work in order to give these new business people the extra support they need to establish businesses that are sustainable in the long term.

As a South African organisation we:

• When Support Government projects at local, provincial and national levels
• Proactively encourage our clients to comply with our BEE policies
• Seek communication with identified BEE stakeholders
• Maintain links with BEE activities
• Encourage the private sector to co-finance BEE transactions

As a development finance institution we view BEE in the broadest possible context. When considering funding applications, we assess each project's ability to meet some or all of the following requirements:

• Job creation
• Rural development
• Urban renewal
• Poverty alleviation
• The empowerment of women
• Skills development
• Education
• Access to finance for the purpose of creating wealth

Through our recent financing activities 23 211 new job opportunities have been created, SA export earnings have increased by R5, 7 million, and we are currently preparing to launch a R10 billion fund to finance BEE business opportunities.

Our approach

We give priority to projects which promise broad-based outcomes and/or which benefit the community as a whole.

To date our empowerment funding has included projects within the following sectors:

• Manufacturing
• Agriculture
• Agro processing
• Chemicals and related products
• Wood, paper and printing
• Transport, storage and communications

Achievements

IDC won the following awards at the 2007 BusinessMap Business Report BEE Awards:

• The IDC was once again acknowledged as the best DFI in the Empowerment arena.
• Three IDC clients were finalists for the category Top Black Business, Ntuso Holdings and Sobengwe achieved joint second place and Razco Plastics was the winner in this category. Congratulations to Wood and Paper and Chemtex SBUs.
• In the category of Top BEE Deal the Ayavuna and Imbewu deals with Tongaat-Hulett and Hulamin was a finalist. The IDC has significant shareholding in Hulamin.
• The IDC won the award for Development Financier of the year for the 4th year running. This year the award was not based on number of value of deals but rather based on evaluating selected projects on the seven criteria of the balanced scorecard of the BEE Codes of Good Practice, which is in line with IDC strategic direction.

Economic transformation

• Small and Medium Enterprises are a crucial element in a developing economy
• Most emerging entrepreneurs are involved with SMEs
• SMEs constitute the majority of our clients
• In 2004, 73% of all the funding applications we approved, were for SMEs
• The SMEs we financed created 6,65 jobs per R1 million investment
• Non-SMEs we financed, created 2,74 jobs per R1 million investment

Community Foundations and Workers' Trusts

Community foundations incorporate:

• Community Foundations are supported by the IDC Foundation Fund (R50 million/established 2003).
• The Black Association of the Wine and Spirits Industry (BAWSI) Trust was launched in Stellenbosch, Western Cape in February 2005.
• Five other Community Foundations which are in the process of being established; three in the Western Cape, two in KwaZulu-Natal and one in Mpumalanga

The purposes of workers’ trust is to:

• Ensure that historically disadvantaged, low income South African workers have a meaningful stake in the economy.
• Workers' Trusts are funded by the IDC Development Fund (R100 million/established for broad-based empowerment projects).
• There are currently 15 workers' trusts established.

The IDC Foundation Fund and IDC Development Fund

These funds:

• Participate in our normal investment activities but with lower return requirements
• Enable community foundations and workers to become shareholders in IDC projects.

For more information on Black Economic Empowerment, please call us on 086 069 3888. Alternatively, email our call centre at callcentre@idc.co.za.

For enquiries, contact:

Shirley Mampuru
Tel: 011 269 3583
Email: shirleym@idc.co.za