Material issues

The material issues in this report were identified utilising feedback from engagements with stakeholders, IDC’s key risks and IDC’s strategic priorities. All three of these sources are discussed in separate sections of this report.

Going forward we plan to prioritise the material issues and build on our existing processes for a more resilient IDC.

IDC’s Material Issues

Material issue Key stakeholders addressed Key risks related to material issue Addressed in strategic priorities
Continue to be a financially sustainable organisation
Ensure that returns on investment outweigh downside risks taken over the long term while ensuring that relevant products are in place to facilitate industrial development  
  • Economic Development Department
  • Regulators
  • Funders and rating agencies
  • The risk of investment (debt, equity or guarantee) losses/loss of income or inability to collect what is due to the IDC
  • The risk of concentration within the IDC portfolio from a counterparty, sector, regional/country or product perspective
  • Ineffective/incomplete due diligence process
  • The risk of the volatility of IDC listed share portfolio impacting the IDC
  • The risk of the IDC being over dependent or reliant on a limited number of counter parties or financial products
  • The risk of margin erosion or income opportunity loss due to inappropriate or incorrect pricing
  • Sustainability/successful implementation of projects
  • Inadequate operational/financial performance of sefa (capacity, resources, reputation, delivery)
  • Financial, environmental and social performance impacting on IDC’s performance
  • Plan investment return and risk profile to ensure sufficient growth to replace existing cash generators
  • Improve efficiencies through improved systems and processes
  • Stem increasing levels of impairments
  • Improve management of portfolio
Ensure that relevant products are in place considering pricing and structuring as well as improving access to these products  
  • Economic Development Department
  • Clients/project partners
  • The risk of margin erosion or income opportunity loss due to inappropriate or incorrect pricing
  • Ensure that appropriate pricing and fee structures are in place
  • Structure investments to increase direct equity returns
Improve customer service levels including turnaround times and ease of doing business with IDC   
  • Economic Development Department
  • Clients/project partners
  • The risk of the IDC failing to meet expected levels of customer satisfaction
  • Improve customer service
Skilled human resources pool
Deepen the IDC’s skills base, ensuring that employees are given the appropriate rewards and recognition  
  • Economic Development Department
  • Clients/project partners
  • Employees
  • Ensure appropriately skilled and capacitated human resources
Increase stakeholder engagement
Improve communication with various stakeholders to register stakeholder concerns, respond with well-communicated plans, and foster cooperation between role players in activities in which it engages  
  • Economic Development Department
  • Clients/project partners
  • Employees
  • Other government departments
  • Regulators
  • Funders and rating agencies
  • The risk that action or inaction by IDC damages the Corporation’s reputation
  • Build partnerships with other financiers to leverage off different strengths and mandates
  • Increase engagement with sector players to identify opportunities
Ensure that benefits of IDC-funded projects flow to communities
Increase benefits to local communities of projects supported by the IDC, including direct benefits such as job opportunities, as well as secondary benefits such as small business development and improved social conditions  
  • Government
  • Communities
  • Increased inequality and incidence of poverty may result in a greater occurrence of protests, not only by organised labour but also communities, impacting on IDC-financed enterprises and the corporate reputation (social unrest)
  • Build strong communities around projects that IDC funds
Increase support to government through policy research and inputs into policy development as well as support for coordinating government projects  
  • Economic Development Department
  • Leverage and strengthen IDC expertise to shape and influence policy
Influencing environmentally- sustainable development
Reduce IDC’s direct negative impact, as well as its indirect impact by influencing the environmental responsibility of the projects and businesses that receive its development support  
  • Economic Develop-ment Department
  • Clients/project partners
  • Reduce IDC’s negative environmental impact
  • Reduce industry’s negative environmental impact
Economic factors     
  • The risk of macro-economic conditions impacting on the IDC’s business
  • The risk of negative sector-specific trends
Increase industrial development impact
The direct impact that IDC’s activities have on developing industries as well as the indirect impacts on upstream and downstream sectors  
  • Government
    • Economic Development Department
    • Department of Trade and Industry
    • Other government departments responsible for sectors in which IDC is involved
  • Strengthen sector development objectives and strategies
  • Align IDC activities with the sector objectives of NGP and IPAP as well as its own sector objectives
  • Increased project development and implementation
  • Provide industrial finance to further achievement of sector development objectives
  • Increase regional industrial integration through the development of value chains
Improve socio-economic impact

including job creation, regional investment patterns in SA and black economic empowerment  

  • Government
  • Communities
  • Funders
  • Ensure an effective and efficiently operating sefa
  • Outcomes achieved through funding activities
Maintain good governance
including maintaining good risk assessment, fraud prevention and other governance structures and processes  
  • Economic Development Department
  • Regulators
  • Funders
  • The risk of inadequate/inappropriate legal documentation
  • All forms of internally/externally conducted theft or fraudulent activities
  • Rationalisation/consolidation of state-owned companies


Lodox Systems

Continuous support from the IDC will ensure continuous business growth in this proudly South African company that created the world's first full-body, low-dose, digital X-ray imaging system.

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