IDC financing is generally done in the form of debt instruments for agro- processing and targeted agricultural production; however, equity instruments can be considered for strategic projects. Blended finance schemes are instrumental in the agricultural sector and the IDC, with its fund management capability, manages programmes for blended finance such as the Agro Industrial Fund and Agro-Processing Competitiveness Fund.

co-develops and funds projects with high direct and indirect developmental impact, particularly catalytic-type  investments. The project development funding provides for an equity stake of up to 49% in a project vehicle – with the equity stake or rights determined upfront. The funding supports the scoping, pre-feasibility, and feasibility phases of the project.

The IDC then partners with project sponsors that have the technical and commercial  ability, and with institutional capacity, to drive the development and implementation of projects within the agricultural, agribusiness or related sectors. The development of the berry, table grape, and pecan nut industries (project development  support) demonstrates the meaningful role the IDC plays in the diversification of South Africa’s agricultural sector.

In addition, the corporation has played key roles in the establishment of certain industries and value chains without project development funding. These include the almond industry and the canola oil value chain. Furthermore, the IDC plays strategic roles in supporting (development and implementation) master plans, such as the reduction of chicken meat imports (poultry master plan), diversification  from a sugar-based industry into a sugarcane-based industry (sugar master plan), and increase in fruit exports (agriculture and agro-processing master plan).