http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.31Change: -16.14
R/$ = 14.22Change: -14.07
Au 1292.99 $/ozChange: 1.84
Pt 1079.50 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 30, 2011

IDC approves record R8.4bn funding for SA investments

Back
CEO Geoffrey Qhena discusses the IDC's investment of R102-billion over the next five years in the sectors prioritised in government’s New Growth Path. Editing: Shane Williams. Camera Work: Darlene Creamer.
 
 
 
Construction|Africa|Components|Engineering|Environment|Finance|Industrial|Mining|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Tourism|Africa|Automotive|Energy|Logistics|Manufacturing|Products|Services|Infrastructure|Operations
Construction|Africa|Components|Engineering|Environment|Finance|Industrial|Mining|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Tourism|Africa|Automotive|Energy|Logistics|Manufacturing|Products|Services|Infrastructure|Operations
construction|africa-company|components|engineering|environment|finance|industrial|mining|power|project|projects|renewable-energy|renewable-energy-company|tourism|africa|automotive|energy|logistics|manufacturing|products|services|infrastructure|operations



The Industrial Development Corporation (IDC) would be investing R102-billion over the next five years in sectors prioritised in government’s New Growth Path (NGP), the development finance institution (DFI) said on Thursday.

The IDC approved R8.4-billion in funding for South Africa-based developments in the financial year ended March 31, with some 97% of these investments in NGP priority sectors.

This was the highest in the IDC’s history and Economic Development Minister Ebrahim Patel commented that it was an indication of the recovery of economic growth and a “big spur to investment”.

The State-owned DFI recorded a profit of R2.7-billion during the financial year and both CEO Geoffrey Qhena and CFO Gert Gouws emphasised that the IDC’s strong financial position would enable it to meet the R102-billion commitment in future.

About R11.1-billion would be invested in logistics, infrastructure and cross-sector projects, R14.8-billion in the tourism and creative industries and high-level services, and R7.7-billion in the agricultural industry.

But, the bulk of investment would be in the mining, manufacturing and green industries of R22.1-billion, R20.8-billion and R22.4-billion respectively.

Part of its newly established green industry unit’s focus would be renewable energy, over which, much anxiety and concern exists around the long-awaited renewable energy feed-in tariff (Refit).

Despite this uncertainty, the IDC remained confident that in line with South Africa Integrated Resource Plan, there would be a renewable energy market to invest in, in the future.

“A large portion of the IDC’s investment is in renewable energy and the Refit is a concern with regard to timing and the finalisation of the tariffs and the power purchase agreements. We continue to closely follow developments and we are expecting to invest – it is just a matter of how and when,” industrial sectors divisional executive Shakeel Meer told Engineering News Online.

Patel said that the IDC must lead the “green industrialisation drive” and help South Africa identify new products and technologies in this expanding part of economic activities.

In rolling out the five-year investment plan, Patel said the department would continue to work with the IDC to significantly expand the level of investment, reduce the cost to industrial borrowers and shift more investment to projects with a large labour-absorbing capacity.

STRONG BALANCE SHEET

Improved profitability from operations, performance of equity accounted investments, containment of operating expenses and lower impairments contributed to the company’s strong position, which saw a 22% higher profit than 2010.

It posted revenue of R8.9-billion, with other comprehensive income of R10.7-billion, owing to the strong performance in the JSE.

Job creation remained a strong focus of the DFI, with approvals during the year expected to create 19 650 full-time jobs and save an additional 11 650 jobs. A further 8 100 jobs are expected to be created through direct linkages to activities in the informal sector.

More than 17 000 jobs were also saved through the R1.5-billion approved to companies through the Unemployment Insurance Fund bond, which was launched in May.

As South Africa’s economy recovered steadily from the recent recession, the hard-hit manufacturing industry also experienced massive job losses, and received the largest portion of funding of 27%. This, said Qhena, was indicative of the IDC’s focus on both preserving and growing high-impact manufacturing capacity and succeeding at improving its impact on job creation.

Patel said this indicated the IDC’s commitment to deepening industrial capacity development, given that the industry is critical to prosperity, and its key role in using raw materials, supporting high-level services, expanding foreign-exchange earnings and creating decent jobs.

About R1.7-billion was approved for the automotive and components industries and R646-million in the clothing and textiles industry, to support distressed companies and assist with competitiveness improvements.

Funding in the mining industry was lower than in previous years, infrastructure investments related mostly to funding for the construction industry, telecommunications infrastructure and hospital infrastructure.

Meanwhile, the IDC saw a shift in its funding model with regard to regional distribution, where 49% of approvals were for the country’s provinces excluding Gauteng, KwaZulu-Natal and the Western Cape.

The IDC said it seeks to be more active in early stage project development, and would continue to influence policy to create a more enabling environment for industrial development.

However, its partnerships with stakeholders, including cofunders, government, civil society, businesses and social partners remained key in the unbundling of its future success, Qhena said.

 


 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149