Youth Scheme In Action

 

Gro-e youth

Scheme

OBJECTIVES

One of IDC’s objectives, through the GRO-E Youth Scheme, is to encourage youth entrepreneurship and employment creation, thereby growing South Africa’s economy.

Gro-E Youth Scheme Qualifying Criteria

• Available to South Africans and permanent residents up to and inclusive of the age of 35 years at the time of final approval;

• Youth shareholding should be at least 26%;

• Youth operational involvement in the business;

• Applicant can be a start-up or expansion within South Africa;

• Cost per job of up to R800 000 for the duration of funding – calculated using total project cost;

• Applicant to meet the BBBEE requirements of the IDC – level 4 or have a plan to achieve this within 24 months; and

• Own contribution will be determined by the financial capacity of the entrepreneur and the cash flow profile of the business.

Gro-E Youth Scheme Instruments and Pricing

YOUTH PIPELINE DEVELOPMENT PROGRAMME

OBJECTIVES

To improve the readiness of potential applicants and thereby increase their probability for IDC consideration.

Qualifying Criteria

• Available to youth-owned businesses (irrespective of whether it qualifies for Gro-E Youth or not);

• Application must meet IDC sector and funding limits;

• Applicant can be start-up or expansion;

• Pre-investment support

  • Proposal must pass a readiness assessment and in-principle go-ahead from sector SBU Head;

  • To bring an application to bankable stage, including detailed marketing studies, mentoring, technical assessments, sourcing and negotiating with suitable suppliers, costing of products, QS costings, EIAs etc.); and

  • Up to a 6% of the potential investment amount up to a maximum of R500,000

• Post approval assistance:

  • Pre implementation – for assistance required in meeting/ clearing of CPs (must be specific and be supported by cost estimates, with clear milestones with regards to objectives and skills transfer);

  • Implementation – for in depth mentoring and coaching as well as any other business support required for up to 2 years; and

  • Up to 40% of the investment amount or a maximum of R1.5 million.

• Interventions provided during pre-BA and pre-implementation stages must not take more than 6 months to be completed.

SOURCE: IDC

LINK: https://www.idc.co.za/gro-e-youth-scheme/