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Key achievements and challenges (2012)

 Key achievements

  • Record levels of funding activity:
    • Value of funding approved increased to R13.5 billion from R8.7 billion
    • 293 funding approvals in 2012 compared to 221 in the previous year
  • Increasing impact on employment:
    • 45 900 jobs expected to be created and saved in South Africa through funding approvals, compared to 39 400 in the previous financial year
    • 48% of these jobs based in rural areas
  • Emerging as a leader in the development of green-industries:
    • Establishment of the Green Industries Strategic Business Unit
    • Participation in funding for 12 of the projects that received preferred bidder status during the first round of the Renewable Energy Procurement Programme (REPP)
    • Launched the Green Energy Efficiency Fund (GEEF) to provide low-cost funding to businesses to implement energy-saving technologies
  • Lowering the cost of funding for businesses:
    • Sourcing of an additional R2 billion from the Unemployment Insurance Fund (UIF) to use for funding more labour-intensive businesses
  • Addressing stakeholder needs:
    • Initiatives implemented to reduce turnaround times to improve customer satisfaction
    • Maintained high levels of customer service satisfaction (89% customer satisfaction score for financial year 2012)
    • Increased consultation and interaction with internal and external stakeholders resulting in improved stakeholder perceptions
  • Financial sustainability underpinned by profits of R3.3 billion, a 22% increase from previous financial year
  • Completed process to establish Small Enterprise Finance Agency (sefa) as a wholly-owned subsidiary of IDC. This will improve service delivery to small, medium and micro enterprises (SMMEs)
About this report

This integrated annual report covers our financial and non-financial strategy and performance for the financial year 1 April 2011 to 31 March 2012 and prospects going forward. When we refer to “IDC”, “we” or “our”, we mean the Industrial Development Corporation and its financing subsidiaries. The non-financial part of the report excludes IDC’s operating subsidiaries, joint ventures, leased facilities and outsourced operations. In areas where the boundary is different it has been identified in the report.

In preparing the report, management considered the guidelines on integrated reporting as provided by the International Integrated Reporting Committee (IIRC). Financial information was prepared in accordance with the IFRS while our sustainability-related information has been compiled following the guidelines of the Global Reporting Initiative (GRI G3.1), supported by internally developed guidelines. Our GRI index is available at the end of the report.

IDC has declared a B+ application level in terms of the GRI G3.1 guidelines.

External Assurance providers were engaged to provide assurance on selected sustainability information in this report using the International Standard on Assurance Engagements (ISAE) 3000: Assurance Engagements other than Audits and Reviews of Historical Financial Information. Their report is on page 85–86.

This year we have set out to identify and define our material issues through stakeholder engagement. As this is our first integrated annual report, there are no applicable re-statements from previous years and the structure has changed significantly. Recognising that integrated reporting is a journey, we plan to improve the materiality of the content in future years and align our reporting structure with our business strategy.

We appreciate your feedback. Any queries or comments can be sent to irreport@idc.co.za

 

 Challenges

 
  • Infrastructure constraints adding to the cost of projects
  • IDC has been investing in the development of large projects reducing the direct job creation efficiency of our funding
  • Slower economic recovery resulting in lower levels of business confidence
  • More proactive project development approach results in increased costs and risk profile in the short term, but will result in higher development impact over time
  • Attracting and retaining skills
  • Higher incidence of applicants misleading the Corporation