South Africa - Non-Sovereign Guaranteed Line of Credit Agreement

The project involves the extension of a long term Line of Credit (LOC) of US$50million to IDC. IDC would on-lend the funds to its corporate clients and SMEs in South Africa and the Southern African sub-region. About 40% of the LOC would be used to finance cross-border industrial development projects in such sectors as manufacturing, construction, agro-business, transport, and communication, electricity, gas, water and SMEs, principally in the automotive services sector, leasing, insurance, tourism, hotels and restaurants etc. Part of the LOC would also be utilized for the expansion of the operations of existing enterprises and for acquisition of shareholdings in existing enterprises as well as enterprises scheduled for privatization over the plan period of 2004 to 2007. The project will support regional integration efforts of the South African Government in the SADC sub-region in particular, and the Continent in general.