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The IDC launches the new clothing, textiles, footwear and leather growth programme

7th October 2021

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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:

Programme	Support	Support Amount	Description
Capital Equipment Loan Interest Support (CELIS)	Interest Subsidy	Capped at R5m	Funding 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.
Capital Equipment Concessional Base Loan Support (CECBLS)	Interest-free loan	Capped at R10m	Support is available on capital equipment loans for factory expansions/workflow improvements of existing entities.
People, Product, Process, Market Development Support in the form of concessional loans & partial grant support	Concessional loan & Partial Grant	Capped at R3m	Providing 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.
Working Capital Loan Support (WCLS)	Interest-free loan	Capped at R5m	Offering interest-free working capital concessional loans
Capital Equipment Support in the form of concessional loans and partial grant support (CESCL)	Interest-free loan & Partial Grant	Capped at R3m	To support early-stage start-up companies still in the development stages, including fashion designers, to drive broad-based transformation.
Revolving Working Capital Loan Support	Interest-Free Loan	Capped at R2m	To 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.

Cova Advisory

Edited by Creamer Media Reporter

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