What is the ECDC

The Eastern Cape Development Corporation (ECDC) is a dynamic economic development agency in the Eastern Cape.


What Financial Products are on offer at the ECDC?

The Eastern Cape Development Corporation (ECDC) offers products across two main categories, namely short-term and long-term business finance. ECDCFuture, our long-term offering, consists of a long-term debt finance vehicle, and an equity finance vehicle, the TERMcap and EQUItrader products respectively. Please refer to the ECDCFuture product brochure, and the TERMcap and EQUItrader infocards for product specifications relating to these products.

Our short-term offering, ECDCAccess, provides short-term debt financing products that are geared towards the facilitation of efficient cash-flow management in our client businesses. The NEXUS trade, WORKflow, POWERplus, and IMBEWU micro loan products are on offer in this regard. Please refer to the ECDCAccess brochure and the infocards relating to each product for further information and product specifications.



Short-term business financing solutions


What does it do?

Its primary goal is to enhance cash flow to allow for efficient contract delivery, resulting in financial stability

How does it achieve this?

Through short-term, purpose-driven debt finance product packages.


What is a NEXUS trade loan?

You’ve been awarded a contract in the private or government sector that stands to take your business to a new level of prominence. Your cash holding may restrict the efficient delivery  of  your  contract’s  stated  deliverables.  You  need a cash cushion to assist you in reaching this contract’s objective, so that you can sustain a healthy   business…

The NEXUS trade loan serves the short-term finance needs of clients servicing contracts in the government and private sectors - placing them on the road to sustainable   success.


Lifespan; 1 to 6 months

Interest: 0% interest

Size: R10 000 to R500 000

Fees and charges: Cash management fee of 5%.


What is a WORKflow contractor loan?

You’ve been awarded a construction contract that could make or break your business. You need to manage cash flow efficiently in order to deliver on the contract’s requirements. You have the capacity, but you need a cash flow injection…

WORKflow Contractor loans provide emerging contractors with both financial and technical support. Made up out of two of the most important elements to a sustainable, successful business - work and cash flow, WORKflow is a product geared to the efficient flow of cash for clients servicing construction contracts in the public and private sectors.

Lifespan: 3 to 36 months

Interest: Prime -2% to Prime +3%

Size: R100 000 to R10 000 000

Fees and charges: Structuring fee 1% of loan value Cash management fee of  2.5%


What is an IMBEWU micro loan?

You’re a small business owner. You’ve identified that a small loan will set your business up for greater yields. The benefits of an IMBEWU loan through ECDC is that, on full repayment of the loan, you receive 10% of your interest paid back in cash! The IMBEWU micro loan aims to facilitate sustainability for small business enterprises in the province. Planting the seed for greater yields, the ECDC partners with small and micro enterprises to develop sustainable small businesses in the Eastern Cape.


Lifespan: Maximum of 6 months

Interest: in line with the National Credit Act

Size: R20 000 and less

Fees and charges: Administration fee in line with the National Credit Act


What is a POWER plus small loan?

You have a business idea - one that can work. You are cash- strapped, and without money to spark your idea it will die. A small, short-term loan will assist you to initiate the beginning of a good thing…

Aimed at SMMEs this short-term loan empowers them to reach their objectives by adding financial power. ‘Powerplus’ describes the value add that this competitively priced small loan offers’ businesses as they pursue financial entrenchment and sustainability


Lifespan: 12 to 36 months

Interest: Linked to the prime rate

Size: R20 000 to R500 000


What does long-term finance do?

It provides capital to businesses for sustained projects to facilitate the long-term viability of their operations


What is a TERMcap loan?

A vehicle by which capital is channeled to a business to allow for financial viability and sustainability through term- defined debt financing.

‘TERMcap’ describes the product - a term loan that avails capital to the client.


Security: ECDC does not require 100% security cover, although available security is attached

Lifespan: 5-7 years (ECDC discretion on property applications, may run to 10 year term)

Interest: Prime -2% to Prime +3%

Fees and charges: Structuring fee of between 1% and 2% of value of transaction valuation fees where applicable Bond registration fees where applicable, at cost.

Size: R500 000 to R10 000 000 per applicant (ECDC discretion applies)


What is EQUI trader equity finance?

EQUItrader provides for equity financing mainly for the manufacturing and retail sectors.

ECDC adopts an ‘equity warehousing’ policy’ that aims to move equity off its balance sheet 5-7 years from the date of transaction by selling its equity stake in a business to the existing shareholders. This process is geared to assist businesses achieve their developmental objectives.

Equity warehousing is therefore the effective facilitation of equity deals (especially BEE buy-ins and buy-outs) through capital investment into businesses.


Lifespan:  5-7 years (ECDC discretion applies)

Fees and charges: Structuring fees of 1–3% of the total transaction value

Size: No specified minimum value. Maximum investment of R10 million (ECDC discretion applies)


What should be included in the application?

Finance applications should include how the project facilitates job creation and/or retention, economic empowerment, value addition to the economy, rural/ township development, increased export income or a new Greenfield initiative, where expansion and rehabilitation will be the resultant benefit.


What will ECDC not finance?

ECDC will not finance applications that propose the following circumstances:

  • The idea might be offensive to the community directly affected by your operation, or the community at large;
  • The application is made for finance to be used in the purchasing of shares that are unrelated to the target of meaningful development in the Eastern Cape;
  • The application is made for a loan to acquire property which will be receiving its income from lease  rentals  only,  and  the loan proceeds will be used for the acquisition of that property only;
  • The application puts forward an idea that requires a period in excess of the recommended period of viability; and
  • The application for a loan is to be applied to a purpose that does not create or save jobs directly, is speculative in nature, and is made by a service provider to ECDC.


The application for finance is approved. What next?

Once the application has been approved, the process will start to determine the terms and conditions of the application. The suitability of the application does not guarantee that it will be successful. The contract will be considered binding once it is signed by ECDC and the applicant concerned.


Are quicker settlement plans encouraged?

As an entity concerned with sustainable development, ECDC welcomes settlement of the loan amount by the client before the end of the contract term.


What if I run into financial difficulty during the contract term?

A maximum six month moratorium from final drawdown is allowed on all new development investments. This is only considered in the event that the cash flow of the promoter indicates that such a moratorium is required.


What if my loan account falls into arrears?

In the event that you default on monthly loan account repayments to the effect that the contract is more than three months in arrears, a full investigation as to why this is the case will be set in motion. The account will be charged a 1% investigation fee, and in compliance with the National Credit Act, the relevant credit bodies will be informed of the default