IDC creates and saves jobs
The Industrial Development Corporation (IDC) recently announced its results for the year ended March 2007. Financing activities for the year under review are expected to create more than 29 300 jobs and save over 3 900.
Highlights of the results included:
Commenting on the results, Geoffrey Qhena, IDC’s Chief Executive Officer said:
Competitive Financing for Development special schemes launched on 10 November 2005 and approvals of R544 million are included in this reporting period. The schemes approvals will result in the creation of 8,373 new direct job opportunities, which contributed to the 2007 financial year’s job creation number.
The IDC contributed significantly to the equitable distribution of economic growth by supporting broad based black empowered (BEE) companies. In the year under review, BEE accounted for 160 approvals, more than half the total number of approvals, with more than R3,4 billion in financing for BEE start-ups or in the form of expansions of existing BEE enterprises.
Much focus was on improving efficiencies, where importance was placed on investments that would create larger developmental impact with smaller amounts of capital. Qhena said that there was an improvement in efficiency and activity as measured through net number and value of approvals. They increased by 61% and 40% respectively, to 241 approvals amounting to R5,9 billion. This represented an increase of 40% on the R4,2 billion approved during the previous financial year.
The socio-economic impact was matched by a strong financial performance with the Group reporting a record profit of R4,345 billion, as compared with 2006 figures of R753 million. Operating income was up R2,645 billion from R378 million last year. Capital gains of R1,796 billion, including R1,653 billion from the unbundling of Kumba Resources, contributed to the Group’s total profit figure. The Group’s assets grew by 33% ensuring a strong base for the IDC to continue delivering on its development activities. The performance was boosted by the boom in consumer spending, favourable market conditions which increased demand for finance, as well as the good performance in the listed and unlisted investments.
Gert Gouws, IDC’s Chief Financial Officer, said:
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