Ensuring financial sustainability

Income from equity accounted investments

The performance of equity accounted investments was under severe pressure in the last two years, with the loss of R2million in 2012 increasing to R466 million in 2013. These investments were significantly impacted by downward pressure, especially on commodity prices as a result of the worldwide economic downturn.

Loans, advances and investments

IDC advanced a record amount of R16.0 billion in new loans, advances and investments during the year, almost double the R8.4 billion in 2012 as IDC continued its drive to advance more funds to stimulate economic activity. This resulted in loans and advances growing to R18.7 billion (net of repayment received) from R16.0 billion and investments growing from R25.8 billion to R28.6 billion. In addition to this, significant additional investments were made in subsidiaries at the IDC company level.


The IDC’s borrowings portfolio has grown over time in line with the growth in its loans and advances book. Borrowings as at 31 March 2013 grew to R19.0 billion from R9.9 billion in 2012.

The majority of debt funding has traditionally been through the support of development finance institutions such as Proparco, KfW, AFD , AfDB and EIB, among others. IDC continuously searches for new sources of funds to support its activities. In support of the newly-established Green Industries SBU initiatives, IDC registered a Private Placement Bond (Green Bond) of R5 billion to the PIC, of which R500 million was issued in 2013. Small and medium sized entrepreneurs within the Green Industries SBU are supported through funds from KfW and AFD. The funds received through a Private Placement Jobs Bond issued by IDC to UIF (UIF Social Corporate Investment Initiative) are earmarked to create and sustain jobs. An amount of R1 billion was issued under this Bond during the year, resulting in a cumulative amount issued to UIF of R3.5 billion as at 31 March 2013. In addition, an amount of USD100 million was sourced from the China Development Bank to support SMEs. IDC also continues to source funding from local commercial banks and an amount of R2 billion was drawn in this regard during the year. In addition IDC received R1.5 billion during the year for funds to be managed on behalf of the dti and EDD.

Total assets, capital and reserves and debt/equity

Total assets grew from R112.2 billion in 2012 to R126.9 billion in 2013, mainly as a result of increased advances. The increase in debt levels resulted in the debt/equity level increasing from 10.8% to 19.7%. This increase is part of IDC’s strategy to increase gearing levels over the next few years to approximately 40%.

Future performance

The IDC expects 2014 to continue to be a challenging year as a result of the continued sluggishness of the economy. However, IDC’s balance sheet remains strong and provides a solid foundation for envisaged advances of between R89 billion and R108 billion during the next five years. This is expected to be funded from borrowings of approximately R60 billion, share sales of between R7 billion and R21 billion, with the balance being funded through internally-generated funds. The IDC is well placed to make a meaningful impact on the economy and specifically job creation in the years ahead.


!Khi Solar One

Once completed, this concentrated solar tower power station will be one of the largest in the world. One of the benefits of this project relative to most other renewable energy projects is its ability to store energy and to deliver electricity to the grid during peak times.

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.

R13.1 billion
R16.0 billion
18 922
3 950
© The IDC 2013. All rights not expressly allowed are reserved. P.O. Box 784055, Sandton, 2146, South Africa