Change of IDC’s Board of Directors

The Minister of Economic Development, Ebrahim Patel recently announced a number of changes to the Board of the IDC. Acting board chairman, Ms Monhla Hlahla has been appointed chairman while Lindani Dlamini, Lael Bethlehem, Shadrack Mapetla, Nimrod Zalk and Roger Pitot were re-appointed to the board.

New appointments include Eskom CEO Brian Dames, National Empowerment Fund (NEF) CEO Ms Philisiwe Buthelezi, businesswoman Busi Mabuza and Hosken Consolidated Investments (HCI) CEO Johnny Copelyn, Cosatu Secretary General, Zwelinzima Vavi, Chairman of Business Leadership SA (BLSA) CEO Bobby Godsell and businesswoman
Sizeka Rensburg.

Those retiring include Mfundo Nkuhlu, Jabulani Mtshali, Sello Moloko, Nkosemtu Nika, Nosizwe Nokwe and John Barton. The Minister commended the retiring directors for their contribution to the IDC. He also wished the newly appointed members well and urged them to use their experience and skills to guide the IDC on a new growth trajectory.

IDC COP17 Legacy Project launched

The IDC and the Economic Development Department (EDD) have launched an innovative project to bring hot water to low income households.

The iLanga Life project challenges companies and individuals to donate funds to roll out solar water heaters in communities across South Africa.

Launched at the COP17 climate talks in Durban last year, the project aims to bring about practical benefits in the lives of communities through the introduction of clean-energy technologies. Already R700 000 has been raised, enough for the Solar Academy of Sub-Saharan Africa (SASSA) to install 510 solar water heaters in households in Groutville, an area in the ILembe Municipality, north of Durban. 

The project follows the successful installation of about 211 000 solar water heaters throughout the country since the introduction of Eskom’s rebate system. This system was established to encourage the use of solar heating for domestic hot water. About 36 000 units have been installed in KwaZulu-Natal to date.

IDC to finance 12 of the 28 Successful Power Producers

The IDC has approved funding of R5,2 billion for 12 of the 28 Preferred Bidders which have been approved by the Department of Energy to kick-start solar and wind energy generation for South Africa.

The projects are located in various provinces of South Africa including the Northern Cape, Western Cape, Eastern Cape and North West and are expected to boost much-needed economic activity in these areas. All 12 preferred bids have broad based BEE participation by communities and will further enhance the localisation of green industries in South Africa.

In total, the IDC has allocated R25 billion over the next five years towards developing and financingindustries that enhance South Africa’s transition to a green economy. 

Government injects R2 billion into job creation

The Unemployment Insurance Fund (UIF) will invest another R2 billion with the IDC for job creation. In 2009 the UIF agreed to place a R2 billion bond with the IDC to provide funding to businesses that will create and save jobs.

Since 2010, the IDC has approved R2, 5 billion, saving 13 878 and creating 12 431 jobs. The total number of jobs both saved and created is 26 309. The initial R2 billion UIF/IDC bond, which was offered to businesses at a fixed concessionary rate,
will mature in 2015.

Targeted at expansionary acquisition and expansions of existing businesses, UIF Commissioner Boas Seruwe says the good performance of the initial bond prompted the UIF to invest an additional R2 billion with the IDC, in four bonds of R500 million each. This means that more revenue is contributed to the UIF and fewer claims are paid out to beneficiaries, a move, he says, that will ensure UIF’s financial stability.