A multi-billion rand agreement to support small and medium-sized enterprises (SMEs) was signed in Johannesburg on Wednesday.

In entails a R325-million *1 concessional financing deal between the Industrial Development Corporation (IDC) and Thales International Offsets, in co-operation with Calyon investment bank.

The IDC said: "In line with the IDC's development mandate, this five-year facility will be used to promote and sustain SME development in historically poorer provinces."

Provinces to benefit from investment projects included the Eastern Cape, North West, Limpopo and the Free State.

"This facility will further be used to fund enterprises that are adjacent to townships and SMEs located in rural areas *2," the IDC said in a statement.

Its strategy was to focus on job creation, black economic empowerment and financial assistance to SMEs to help sustain and develop South Africa's economy.

The IDC said Thales was arranging this financing facility under the auspices of the South African National Industrial Participation Programme (NIPP).

Under this programme, international companies interested in government contracts are required to develop and invest in projects providing long-term benefits to the country.

Thales has been involved in the NIPP since its inception in the late 1990s and has since then developed several projects in a variety of industries.

IDC head of corporate funding Bharti Harie said the loan was the cheapest source of commercial funding that the IDC had recently received.

In approving the loan, the Department of Trade and Industry had allowed a wholesale facility to IDC, who would lend the funds to individual SME clients.

Thales International Offsets is a wholly-owned unit of Thales, a leading international electronics *3 and systems group, serving defence, aerospace, security and services markets worldwide.

With acknowledgement to Sapa.

*1 Make a billion or few out of one's client nation and then underwrite the loan of some of it back to them when one gets caught in the cookie jar and needs a vigourous image laundering.

*2 First in line for the dodgy wonga must surely be the poverty stricken garlic and escargot farmers in the poorer provinces.

*3 A leading international briber and corrupter of politicians and acquisition officials across the length and breadth of the first, second and third world nations.