!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.

Investing in communities

B-BBEE ratings

B-BBEE codes of good practice

The IDC is measured against the Adjusted Generic Scorecard, meaning that as a company in which shares are held by government, it is not rated on the Ownership element. We maintained our level 2 rating despite the overall score reducing slightly. The score for the Socio-Economic Development element increased significantly, the score for Enterprise Development was maintained, while scores for other elements were reduced.

Apart from measuring its own contribution to black economic empowerment, IDC also endeavours to entrench the principles of broad-based empowerment in all companies that it funds. Since June 2011, all companies that apply for funding need to have ratings. Companies with a B-BBEE level from levels 5 to 7 should implement plans to achieve a rating of at least level 4 within a period of 12 months. Companies at level 8 should achieve a rating of at least level 5. A business support function has been implemented to assist companies.

Preferential procurement

The IDC is firmly committed to promoting economic growth through the advancement of preferential procurement to Historically Disadvantaged Individuals (HDIs) and the promotion of local production in-line with principles prescribed in the Preferential Procurement Policy Framework Act (PPPFA) Regulations.

Broad-Based Black Economic Empowerment (B-BBEE) spend is measured in terms of the recognition levels of IDC suppliers in-line with the approved Department of Trade and Industry Codes of Good Practice. The Corporation is a Level 2 B-BBEE Contributor based on an independent review undertaken by a SANAS (South African National Accreditation System) accredited rating agency. In terms of procurement spend, more than 90% of all open tenders approved by the IDC during the financial year were awarded to locally based suppliers.

Introduction – CSI context

Corporate Social Investment (CSI) refers to a business’ contribution to society over and above its regular business activities. CSI has evolved over the years from philanthropy and charitable giving to a business imperative. Today many companies both locally and internationally view CSI as an important part of business. Potential benefits include improving corporate image, employee morale, community relations, the socio-economic environment and corporate citizenship.

Furthermore, CSI in South Africa has an added dimension as it is measurable by the Broad Based Black Economic Empowerment Act of 2007 and various Industry Charters. In the Codes of Good Practice derived from the B-BBEE Act, CSI falls under socio-economic development (SED).

Within the IDC, CSI complements the Corporation’s core mandate of industrial capacity development. It supports initiatives that promote employment creation, poverty eradication and sustainable development for the most marginalised citizens. Our interventions are also aligned to government development imperatives. Our focus is on three development sectors: education and skills development, health and sustainable livelihoods.


Our main objectives during the past financial year were to increase support for projects in rural areas and marginalised communities and to implement a revised education and skills strategy aligned to the national accords on Basic Education. The activities implemented included:

Education and skills development

Whole School Development
We expanded our adopt-a-school project from a support for Maths and Science only to include a more holistic approach of Whole School Development (WSD).

Twenty schools were selected across the country and will be adopted for a period of three to five years depending on individual needs. A partnership has been formed with the Department of Basic Education and Adopt-a-School Foundation, a non-profit organisation that designed the whole school development model. .

Support for Further Education and Training (FET) colleges
In 2012 we started a new project to support FET Colleges. Eight colleges were provided with donations for various activities which ranged from renovations of engineering workshops facilities, purchasing of equipment and leadership training. This is in support of the government’s policy to increase the number of artisans trained in useful vocations.

Support for universities
Eight university programmes were funded. We funded programmes that are designed to achieve goals and objectives of developing scarce skills required to grow the economy in line with the New Growth Path (NGP).

Bursary support programme
One of the key achievements during the reporting period, was the implementation of the bursary support programme to complement the external bursary programme. Studietrust, a specialist NGO in the management of bursaries for corporates was appointed in July 2012 to manage this programme. The aim is to provide psycho-social support to IDC bursars, most of whom come from underprivileged schools and backgrounds and find it difficult to adjust to the independence of university life. Through this programme, failure rates and drop-out rates will be curbed.

Sustainable livelihoods

In the year under review, 12 projects were funded in rural and underdeveloped areas. All these address the needs of the poor and are aimed at enabling micro or survivalist community enterprises to generate income for poverty alleviation, support beneficiaries to gain employment through vocational training and job placement.


In January 2013, the CSI Committee approved a grant to assist the National Department of Health (DoH) to pilot the use of park homes to be used as primary health care centres in rural and marginalised areas. This is part of the implementation of the National Health Insurance programme that government is implementing. The IDC funding will be for the provision and furnishing of the park homes. The DoH will be responsible for provision of health posts and overall operation and maintenance of the centres.

Employee volunteerism and special interventions

Employees are encouraged to get involved in volunteer work through giving and volunteering. We have the I do Care Fund where employees voluntarily contribute part of their salaries towards charity. At the end of the year, they are given an opportunity to nominate charities of their choice who become beneficiaries. During the year under review, 37 organisations across the country benefited from this programme.

Since 2007, the IDC has also been involved in building houses in partnership with Habitat Humanity South Africa. In year under review seven houses were built bringing the total built so far to 35.

In addition, CSI contributed towards disaster relief in areas affected by floods in the Eastern Cape and to the community of Khayelitsha in the Western Cape where shacks were destroyed by fire on New Year’s day. The contribution was made through Gift of the Givers, a reputable South African NGO involved in disaster management locally and internationally.

Budget performance

Over the past three years there has been a significant increase in the budget allocated to CSI, and expenditure more than doubled in the year under review.

Education and skills development is now the priority of our CSI focus. 50% was spent on this sector, followed by sustainable livelihoods and health.

Measuring performance

We measure our performance through an increase of approvals in rural areas and marginalised areas. Our selection of projects is dependent on approvals of the previous year. If there were less approvals in a region/province, we prioritise that region in the next year.

Secondly, our performance is measured through turnaround times and service to organisations we work with. Annually, our stakeholders, partners and beneficiaries are requested to rate our performance. We review their responses and try and improve based on the feedback we receive.

Lastly, we compare ourselves with our peers. We subscribe and participate in the CSI Handbook, published by Trialogue annually. The Handbook contains extensive information on the CSI landscape in South Africa. Over 100 leading companies participate in the publication.

We are performing well but there is always room for improvement. One of the areas we need to improve on is on the monitoring and evaluation (M&E) of projects we fund. In order to address this shortfall, M&E will now form part of the project design and will be included in the team’s targets. In addition, a tool has been designed to assist and guide the team.


The challenges experienced during the year under review are outlined in the table below along with proposed solutions:
Challenges   Solutions  
Capacity constraints  
  • Streamline our work. Discourage unsolicited requests especially from welfare organisations and proactively seek projects that are aligned to our strategy. Fill the available vacant post.
Limited exposure in some provinces (Limpopo and North West) 
  • Prioritise initiatives in provinces that did not get approvals during the 2013 financial year.
Monitoring of projects funded  
  • Designed a monitoring and evaluation template which will be implemented as from the current financial year. Monitoring and evaluation will also be included in team targets

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