State-owned development finance institution the Industrial Development Corporation (IDC) has already approved R140-million worth of new investments as part of its R10-billion scheme to facilitate job creation.

The majority of that R140-million would be invested into businesses and projects within the metals fabrication and component manufacturing sectors, as well as the agro-processing industry, IDC regional director for the Western Cape Lizo Ntloko told Engineering News Online on Wednesday.

Ntloko added that the IDC had a pipeline of projects that could qualify for funding from the R10-billion scheme and that it would make a number of new investments within the next two months.

The IDC was currently in the midst of a national road show to explain the scheme and to generate more interest, which Ntloko said had been lacking in certain sectors.

The scheme, which became effective on April 1, was established as a mechanism to tackle the country’s unemployment challenges.

It enabled start-up businesses or existing businesses undertaking expansion projects to access funding of between R1-million and R1-billion.

The funding would be available to entrepreneurs across the IDC’s mandated sectors at prime less 3% over a period of five years.

Some of the sectors highlighted for funding included the green economy, manufacturing, the mining value chain, agriculture and infrastructure.

It was anticipated that the scheme would assist in the creation of an additional 40 000 to 50 000 employment opportunities, at an average of R250 000 to R300 000 for every job created.

Government plans to create five-million new jobs over the next decade, thereby reducing unemployment by 10%.