http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.28Change: -0.13
R/$ = 12.14Change: -0.07
Au 1188.45 $/ozChange: 1.85
Pt 1116.50 $/ozChange: -3.00
 
 
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 Contact 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|Engineering|Africa|Components|Environment|Industrial|Mining|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|Automotive|Energy|Logistics|Manufacturing|Products|Services|Infrastructure|Power|Operations
Construction|Engineering|Africa|Components|Environment|Industrial|Mining|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|Automotive|Energy|Logistics|Manufacturing|Products|Services|Infrastructure|Power|Operations
construction|engineering|africa-company|components|environment|industrial|mining|project|projects|renewable-energy|renewable-energy-company|africa|automotive|energy|logistics|manufacturing|products|services|infrastructure|power|operations
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Updated 2 hours 16 minutes ago While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Updated 2 hours 16 minutes ago Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
LIFTING EFFICIENCY The Mobicon container handler increases operational efficiency and reduces demurrage costs for trucks waiting to be loaded and unloaded
Updated 2 hours 16 minutes ago Freight management and logistics specialist Intermodal Connections, which was established a year ago, has expanded its fleet of container handling equipment to meet the growing demand in KwaZulu-Natal for swift, safe and reliable cargo handling. The company’s...
More
 
 
Latest News
Irish Foreign Affairs and Trade Minister Charles Flanagan told media on Thursday that Ireland was well positioned to play a greater role in Africa, particularly in the aviation, pharmaceuticals and agricultural industries. Flanagan was this week leading a high-level...
The Lesotho Highlands Development Authority (LHDA) has appointed three consultants for work packages as part of Phase 2 of the Lesotho Highlands Water Project (LHWP). The contracts, worth a collective M40-million, were awarded to the SMEC-FMA joint venture (JV);...
JSE-listed Huge Telecom continued to grow its distribution capabilities during the year ended February 28, with the number of business partners increasing by 136, or 47%. Huge Telecom’s connectivity services, which were distributed mainly to small and medium...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Updated 2 hours 9 minutes ago While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
Updated 2 hours 9 minutes ago LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
Updated 2 hours 9 minutes ago South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
Updated 2 hours 9 minutes ago The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Updated 2 hours 9 minutes ago Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96