Apr 12, 2011
IDC to invest R102bn to boost industryBack
Patel said during a budget vote speech in Parliament that he expected the IDC would also consider setting up a distressed sector fund to help shield South African companies from the strong rand – which has rallied almost 30% against the dollar since the start of 2009.
"The IDC will substantially increase the level of industrial funding and will make available R102-billion over the next five years for investment in New Growth Path priorities," Patel said.
The New Growth Path is the government's flagship job creation programme, which is aimed at creating five-million jobs in Africa's largest economy over the next 10 years.
The R102-billion investment by IDC represents a 160% increase over actual approvals in the last five years, and was revised up from R66-billion in IDC's current five-year projections, Patel said of the development finance body.
Green energy industries and the mining and manufacturing sectors will receive the lion's share of the funds with each receiving about R20-billion over the next five years. Money will also be set aside for agriculture and tourism.
"The past 18 months of GDP recovery and, at the end of 2010, the increase in employment point to the realism of our objective," Patel said.
He said South Africa planned to approach local and foreign institutional investors to promote investment in key sectors of the economy and said the country planned to hold an investment roadshow in the United States later this year to promote investment.
South Africa has been recovering from a recession in 2009 but official unemployment has remained stubbornly high with 25% of the 17,3-million workforce jobless.
Edited by: Reuters
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
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
Updated 1 hour 38 minutes ago 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...
Updated 1 hour 38 minutes ago 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,...
Updated 1 hour 38 minutes ago 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...
Updated 1 hour 38 minutes ago 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...
Updated 1 hour 38 minutes ago 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...