The Industrial Development Corporation (IDC) and the Department of Trade, Industry & Competition (the dtic) this week published the new guidelines for the Clothing, Textiles, Footwear and Leather Programme. These new programme guidelines are effective from 1st October 2020 until 31st March 2021.
The new guidelines are a response to the impact and subsequent effects of the Covid-19 pandemic to the South African clothing, textile and footwear economy. The dtic and IDC have identified an immediate need for providing assistance and relief to the sector through a Working Capital Interest Subsidy (WCIS). The WCIS offers an interest subsidy for working capital facilities to a maximum of R700 000 per annum per qualified recipient.
Applications to qualify for this WCIS are to be made to determine qualification for this benefit. Applications are to be made before 31st March 2021 with payment of the interest subsidy benefit to qualified recipients being made until 31st March 2022.
Entities in the following sectors may qualify for the interest subsidy benefit:
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Clothing manufacturers including Cut, Make and Trim operators;
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Textile manufacturers;
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Footwear manufacturers; and
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Leather goods manufacturers and leather processors.
The IDC Clothing & Textile Competitiveness Desk administers the Clothing, Textile, Footwear & Leather Programme, previously called the Clothing & Textiles Competitiveness Programme on behalf of the dtic.
Should you require assistance to access this benefit, please do not hesitate to contact:
Moeketsi Marumo +27 11 568 4763 | +27 82 080 9416 | MMarumo@cova-advisory.co.za
Dylan Jessup +27 11 568 5072 | +27 82 466 0436 | DJessup@cova-advisory.co.za
Cova Advisory