SA launches new gold loan scheme

PRETORIA – SOUTH Africa has launched a R100 million Gold Loan Scheme to assist emerging and established gold jewellery manufacturers with working capital loans and needs.

The Minister of Trade and Industry (DTI), Dr Rob Davies, launched the
scheme in Johannesburg on Wednesday.

The working capital loans under the scheme are provided at a fixed interest rate of 3 percent per annum.

Addressing stakeholders at the launch, Davies said the scheme was originally identified in the Industrial Policy Action Plan to provide a
facility production for gold manufacturers to access favourable loans and terms used in the jewellery production.

Davies said the intervention of R100 million would allow South African
jewellers to grow, and be able to supply local retail sector and the export markets.

“The latest figures indicate that there are about 1000 jewellery manufacturers left in the country and that production is down to 3 500
kilograms per annum from 7500 kilograms in 2004,” said Davies.

He said the jewellery sector  experienced imports  exceeding R1 billion in
2013 while exports were sitting at R467 million in the same year.

This is a contrast from imports of R280 million and exports of R466 million recorded in 2004.

The Gold Loan Scheme will assist local manufacturers recapture a big local
market which is currently served by imported products as well as
increasing exports to destinations such as the United States of America
where our jewellery can enter duty-free under AGOA and other markets.

“The new scheme is one of the many programmes that are used as
interventions to support and grow the jewellery sector.

“The DTI through numerous schemes has provided support to more than 60 emerging and established jewellery manufacturers in a number of global exhibitions and will continue to provide such support,” added Davies.

The Divisional Executive for Corporate Strategy at the Industrial
Development Corporation (IDC), Shakeel Mee,r said manufacturing challenges need a holistic approach and programmes to address them.

“Working together with the manufacturing sector and identifying challenges that they have to deal with on a daily basis provided valuable input in the development of the Gold Loan Scheme,” said Meer.

Application for the Gold Loan Scheme funding can be done online or
submitted to the IDC offices.

– CAJ News









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Posted by on Oct 2 2014. Filed under Featured, Finance, Finance & Banking, Mining, Mining & Engineering. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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