IDC announces record funding approvals of over R10 bn. in 2008/2009 – NEW

IDC announces record funding approvals of over R10 bn. in 2008/2009 – NEW


  • Funding approvals increase by 27 % to a record R10.8 billion.
  • Number of approvals up 39% to 231.
  • Approvals up by 38% to R2.9 billion in the rest of Africa
  • Facilitation of 24 200 new direct jobs in South Africa
  • Funding of companies impacted economic crises expected to save 2500 jobs
  • Over R70bn allocated for next five years


The Industrial Developmental Corporation (IDC) today announced a strong performance for the year ended 31 March 2009, with funding approvals up 27% to R10.8bn and funding in the rest of Africa up by 38% to R2.9 billion. The IDC’s approved funding activity will facilitate the creation of 24 200 direct jobs in South Africa.

In a difficult year that saw South Africa slip into a recession for the first time in 17 years, the IDC’s workout and restructuring unit, which focuses on distressed companies, was particularly busy with more than R500m spent assisting companies affected by the
domestic economic slowdown, which began in the second quarter of 2008 and compounded in the first quarter of 2009 by the global financial crisis. The corporation has set aside R6.1 billion to assist distressed companies through the crisis.

Speaking at the group’s results presentation, CEO Geoffrey Qhena said: “In line with our ongoing strategy, there is a clear emphasis on funding interventions that will help create and preserve jobs. There has been a continued focus on labour intensive industries such as agriculture, clothing, manufacturing sectors, services industries as well as support for small and medium enterprises. Our priority in providing assistance to distressed companies impacted by the economic crisis was and will continue to be on; enterprises that have the potential to recover with the market, opportunities that enhance sector efficiency and ensure strategic capacity and competitiveness. We do this by stimulating private sector lending by risk-sharing with other financiers to improve market liquidity.”

Leadership in Development

In addition to responding to the crisis, the IDC has continued to focus on funding projects and firms geared at addressing the structural challenges facing the economy, particularly those that address catalytic infrastructure, next generation and green investment as well as small and medium enterprises, in support of the national agenda and South African industrial competitiveness.

The bulk of funding (52%) for the year under review was on start ups and expansions; ownership changes accounted for 15% of loans, while restructuring and rescue absorbed 5% of funds approved.

In line with its role to support sustainable economic growth and development, the IDC approved R8.9 million worth of business support grants to assist clients through skills development and consultancy services, up from R2.6 million in the previous year.

Balance sheet and funding

The corporation’s capital base declined substantially as a result of the downturn in the market, necessitating a fair value adjustment of approximately R20 billion year on year. The value of investments now stands at R53bn down from R73bn last year. Despite this decline and increased investment budgets, the Corporation remains financially sustainable and well positioned to play a strong developmental role through the financial crisis.

Commenting on the balance sheet strength, Qhena said: “The IDC intends to inject more than R70bn into the economy over the next five years and we will clearly need to increase our gearing to meet that target.”


Issued by Brunswick on behalf of the IDC
Itumeleng Mahabane
Tel: +27 11 502 7300
Cell: +27 83 284 6774

Nthabiseng Mofokeng
Tel: +27 11 502 7300
Cell: +27 71 670 0153

For further information contact:


Kesebone Maema
Head: Corporate Communications
Tel: +27 11 269 3891
Cell:+27 82 560 2661

Mphilo Dlamini
Publicity Manager
Tel: +27 11 269 3293
Cell:+27 71 224 6503

Notes to Editors:


The IDC is a self-financing, South African state-owned national development finance institution that provides finance to promote industrial and entrepreneurial development. Its primary objectives are to contribute to balanced sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens of the African continent. The IDC identifies and funds projects in partnership with others and focuses on promoting and investing in viable new industries and differentiates itself through risk taking and flexibility in structuring, particularly in promotion of BBBEE, SMEs, regional investment diversification and job creation.