Investing in the economy

CASE STUDY

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.

In the previous financial year, IDC facilitated the formation of the Coega Dairies long-life milk facility in the Eastern Cape’s Coega Industrial Development Zone (IDZ). This initiative is unique in the co-ownership of the plant by local dairy farmers (both commercial and smaller scale), workers and local communities.

In this financial year, IDC further developed the initiative by boosting the Coega Dairy Milk Producers Organisation’s empowerment portion of shareholding, in partnership with the listed Famous Brands entity. This partnership will see the establishment of a cheese production facility in the Coega IDZ, focusing specifically on mozzarella and cream cheese production.

This transaction will:
  • Increase competition in cheese production in South Africa;
  • Create an estimated 269 additional jobs in the dairy and cheese functions;
  • Benefit farmers directly through their shareholding in value-adding activities;
  • Enhance B-BBEE through the participation of black farmers, workers and communities;
  • Replace cheese imports and boost milk procurement from the Eastern Cape; and
  • Underpin rural development by creating a hub of activities around the dairy value chain.

Building partnerships

The IDC’s capacity-building interventions in South Africa and elsewhere in Africa are motivated by the benefits potentially emanating from assisting our clients and DFI business partners in developing their requisite skills and knowledge bases.

Investing in communities

The IDC has adopted a framework to guide the development of rural areas and an important part of the corporation’s leadership in industrial development strategy focuses on support for priority sectors identified in the New Growth Path and Industrial Policy Action Plan.


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