Building partnerships

Capacity building

The IDC’s capacity-building interventions in South Africa and elsewhere on the African continent are motivated by the benefits potentially emanating from assisting our clients and DFI business partners in developing their requisite skills and knowledge bases. With respect to our customers, the objective is to contribute to a more efficient operation of their businesses, whereas the aim with regard to DFI partners is to assist them in executing their development financing mandates effectively.

At the institutional level, capacity-building endeavours are often governed by memoranda of understanding or agreement (MOUs or MOAs) entered into with other DFIs or agencies, although such agreements usually span a number of areas of collaboration.

One such capacity building intervention is the Kabelano training programme, which is managed by the IDC’s Capacity Building department. It aims to contribute to an enabling African DFI environment by providing visiting DFIs with insights on IDC governance and operating practices, including policies, processes and procedures, as well as exemplifying some of the challenges often encountered. Kabelano courses provided during the year covered areas such as due diligence assessments, project financing, property evaluations and corporate governance. During the review period, the IDC also deployed teams to several African DFIs to share IDC practices.

However, our capacity-building initiatives also extend to development agencies, government departments (e.g. diplomatic staff of the Department of International Relations and Cooperation), workers’ trusts and other organisations with which IDC either has a funding arrangement or another form of relationship embodied within a memorandum of understanding/agreement. IDC representation in and contributions to the Pan African Capacity Building Programme, including membership of its Advisory Board, have provided a platform for the provision of assistance at the local government level.

The IDC’s partnering with the three tiers of government, as well as with other public sector entities, takes numerous forms and is intended towards achieving a variety of developmental objectives, as captured in the accompanying table:
Public sector category   Specific public sector entity   Type of assistance provided and/or form of collaboration   Objectives  
National government   EDD  
  • Provision of information and data (e.g. in preparation for EDD’s Budget Vote, for various report-back presentations to the Parliamentary Committee on Economic Development, and for Cabinet Makgotla)
  • Provision of economic research, trend and data analysis (e.g. quantitative analysis of the evolution of SA sectoral trade with major international trading partners and regions)
  • Economic impact analysis and modelling (e.g. estimates of the domestic employment impact of SA’s export trade with the rest of the African continent)
  • Presentations to and participation in MinMec forums
  • Presentations delivered and participation in EDD’s Annual Conferences on Economic Development
  • Participation in the social dialogue process, which forms an integral part of the NGP’s implementation
  • Monitor the impact of specific public sector backed initiatives (e.g. estimates of the direct and indirect employment impact of green economy related initiatives since the start of the NGP)
  • Mandated by the Presidential Infrastructure Co-ordinating Commission (PICC), through EDD, to:
  • Compile and submit business plans for Strategic Integrated Project (SIP) 5 (Saldanha–Northern Cape development corridor), whose business plan was completed and submitted to PICC during the year under review, and, late in the year, SIP 8 (Green energy in support of the SA economy)
  • Play a coordinating and facilitating role with respect to infrastructure and industrial development in SIPs 5 and 8
  • Identify and investigate localisation opportunities across all 18 SIPs. The initiative is aimed at addressing the discrepancy that has existed in the past where large infrastructure and industrial projects have failed to produce sustainable local businesses or increase industrial capacity beyond the direct construction period. The focus areas include expanding existing capacity, rejuvenation of lost capacity and development of new capacity or local technologies. The emphasis is on sustainable opportunities that will be viable beyond the current infrastructure investment programme
  • Improve the enabling environment for business development
  • Improve policy coordination, monitoring and evaluation
  • Capacity-building and skills development within the public sector
  • Enhance public sector delivery and efficiency
  • IDC alignment with national policies and strategies
  • Increase investment activity in South Africa and in the rest of the continent
  • Enhance SA’s export performance in global markets and identify opportunities for import replacement
  • Maximise development impact of public sector interventions, including physical infrastructure development and improvements, renewable energy sector development, etc.
  • Strengthen SA’s position in international negotiations
National government (continued)  EDD (con- tinued) 
  • Make presentations on a regular basis to PICC meetings (e.g. infrastructure inputs requirements, framework for the SIP process, specific SIP updates)
  • Implementing the Agro-processing Competitiveness Scheme on behalf of EDD
  • Active member of the Solar Water Implementation Steering Committee, which involves various government departments and is chaired by EDD
  • Represent EDD within the SA government’s negotiating team at the sustainable development and climate change negotiations (i.e. United Nations Conference on Sustainable Development (UNCSD) – Rio+20; United Nations Framework Convention on Climate Change (UNFCCC) – (COP18)
  • Improve the enabling environment for business development
  • Improve policy coordination, monitoring and evaluation
  • Capacity-building and skills development within the public sector
  • Enhance public sector delivery and efficiency
   the dti  
  • Information and data provided, and contributions made to IPAP content in its successive iterations, impact monitoring and iterative revisions
  • Provision of industry- or sector- specific information and data (e.g. in preparation for the dti’s Budget Vote and for its report-back presentations to the Parliamentary Committee on Trade and Industry)
  • Participation in the development of support/incentive programmes or initiatives (e.g. Special Economic Zones programme)
  • Management of specific support/incentive schemes (e.g. Clothing and Textiles Competitiveness Programme (CTCP) – refer to Development Funds section)
  • Engagement on issues pertaining to the renewable energy procurement programme, including localisation potential
  • Individual IDC business units engage with the dti’s sector desks on an ongoing basis
  • Analysis of trade data and developments for trade negotiators
  • Administering the Industrial Policy Support Fund (IPSF) to assist in conducting industrial policy research and enhance technical expertise in industrial policy formulation
  • Operational management of the African Programme on Rethinking Development Economics (APORDE) aimed at building capacity amongst policy-makers and other beneficiaries in SA and elsewhere in Africa
  • Administering, on behalf of the dti, the Fund for Research into Industrial Development, Growth and Equity (FRIDGE), which is an initiative of the Trade and Industry Chamber of the National Economic Development and Labour Council (NEDLAC) aimed at assisting in meeting the competitive challenges faced by SA in the global economy and markets
  • IDC alignment with national policies and strategies
  • Increase investment activity in SA and in the rest of the continent
  • Enhance SA’s export performance in global markets and identify opportunities for import replacement
  • Maximise development impact of public sector interventions, including physical infrastructure development and improvements, renewable energy sector development, etc.
  • Strengthen SA’s position in international negotiations

CASE STUDY

Agribank of Zimbabwe

As part of the pan African regional integration and industrialisation through development finance initiatives, the IDC has developed programmes to contribute to an enabling environment for institutions outside South Africa.

Coega Dairy Holdings

The IDC has identified increased competition in the dairy value chain and import substitution in the cheese industry as key sector development goals. We also singled out the need for increased farmer (and specifically B-BBEE) participation in dairy value-adding initiatives.

Windtown Lagoon Resort 

The newly built Windtown Lagoon Resort and Spa reflects the IDC’s focus to funding community-based projects that have potential to create employment opportunities in far-flung regions.


APPROVALS
R13.1 billion
DISBURSEMENTS
R16.0 billion
JOBS FACILITATED
18 922
JOBS SAVED
3 950
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