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NEWSFLASH: INDUSTRIAL DEVELOPMENT CORPORATION LAUNCHES THE NEW CLOTHING, TEXTILES, FOOTWEAR & LEATHER GROWTH PROGRAMME

The guidelines for the 2021-22 Clothing, Textiles, Footwear and Leather Growth Programme (CTFLGP) have been recently published. The programme is OPEN for applications and the guidelines are effective from the 15th of September 2021.

The programme, which is based upon the Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Value Chain Masterplan, is broad in its scope and includes grants (capped at R5 million), and interest-free and concessional loans (capped at R10 million).

The major changes from the 2020 programme are:
  • This programme has a much broader scope;
  • Applicants can apply for more than 1 scheme at the same time
  • Working Capital Support was previously capped at R700k per annum and is now revamped into an R5m loan.
Entities in the following sectors may qualify for the CTFLGP programme:
  • Clothing and textile manufacturers including Cut, Make and Trim operators;
  • Footwear manufacturers; and
  • Leather goods manufacturers and leather processors (including producers of automotive leather).
The table below contains an overview of the various schemes under the CTFLGP programme:
ProgrammeSupportSupport AmountDescription
  1. Capital Equipment Loan Interest Support (CELIS)
Interest SubsidyCapped at R5mFunding interest on new and used Capital Equipment loans provided by commercial lenders or interest-bearing shareholder loans. Interest support will be limited to the prime interest rate at the time of approval of the facility.
  1. Capital Equipment Concessional Base Loan Support (CECBLS)
Interest-free loanCapped at R10mSupport is available on capital equipment loans for factory expansions/workflow improvements of existing entities.
  1. People, Product, Process, Market Development Support in the form of concessional loans & partial grant support
Concessional loan & Partial GrantCapped at R3mProviding concessional loans up to 100% of the cost of qualifying expenditure with a partial 40% grant. Priority will be given to entities owned by B-BBEE Act aligned entities, including women, youth and disabled people.
  1. Working Capital Loan Support (WCLS)
Interest-free loanCapped at R5mOffering interest-free working capital concessional loans
  1. Capital Equipment Support in the form of concessional loans and partial grant support (CESCL)
Interest-free loan & Partial GrantCapped at R3mTo support early-stage start-up companies still in the development stages, including fashion designers, to drive broad-based transformation.
  1. Revolving Working Capital Loan Support
Interest-Free LoanCapped at R2mTo support entities aligned to the BBBEE Act: black women, black youth and disabled people who run their own enterprises, including fashion designers. Support is offered against secured orders from a reputable registered entity and/or retailer.

Should you require any assistance or advice to access this benefit, please do not hesitate to contact:

Fungai Blake
066 204 3818
FBlake@cova-advisory.co.za

AJ Koekemoer
082 396 8036
AKoekemoer@cova-advisory.co.za

Grant Whittaker
072 853 6918
GWhittaker@cova-advisory.co.za