The Minister of Economic Development, Mr Ebrahim Patel, today welcomed the release of the Industrial Development Corporation (IDC) annual results presented for the year ended March 2011.
The results show solid performance and industrial recovery, Minister Patel said.
During the reporting period, the IDC approved R8,4 billion in new funding in South Africa, the highest level ever approved by the corporation to date for local businesses. This is in part an indication of the recovery of economic growth and is also a big spur to investment.
The IDC disbursed R6,4 billion in industrial funding in the financial year, a 21% increase over the previous year.
The IDC reports that its approved projects will create or save 31 300 direct jobs in the formal sector. Additional jobs will be created in supply-chains, based on the investment injection.
“The IDC has a strong, healthy balance-sheet, which will now be used more actively to drive the New Growth Path and job creation. In the year ahead, it will expand its investment and funding in the green economy, agro-processing, mineral beneficiation and manufacturing.
“South Africa exports most of the national mineral base in raw or unprocessed form and with a greater focus on local processing, there is an opportunity for expanding local employment. Agricultural output need to be expanded off the base of a stronger agro-processing sector that targets both the domestic market and opportunities in new markets globally.
“The IDC must lead the green industrialization drive and help South Africa identify new products and technologies in this expanding part of economic activities.
Over the next five years, the IDC will make R102 billion available for the main jobs drivers in the New Growth Path to ensure that we realise the new opportunities across the economy,” Minister Patel said.
“The manufacturing sector is critical to our prosperity, given its key role in using raw materials, supporting high-level services, expanding foreign-exchange earnings and creating decent jobs. The sector with the biggest slice of funding approvals in the pas year was manufacturing, indicating the Corporation’s commitment to deepening industrial capacity development,” Minister Patel said.
“The past year shows an increase in investment. We are now working 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,” he said.
“I have been briefed by the IDC management on their existing project pipeline and government departments and provinces will work with the IDC to identify further viable investment opportunities”, Minister Patel said.
The IDC is a state-owned development finance institution reporting to the Minister of Economic Development.
Issued by:
Zubeida Jaffer
Communications Specialist
Economic Development Department
Cell: 082 698 6677
