!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.

Risk profile of IDC’s book

Financial return risk

Sources of income

IDC’s income is dominated by dividends (41%) from both listed and unlisted shares, thus creating dependency on the equity part of the portfolio. A major portion of IDC’s balance sheet is made up of large, mature, listed investments, implying certain dependency on market sentiments and the cyclical nature of such sources of income.

To address income risk, strategies have been put in place to ensure a more balanced investment return and risk profile, ensuring sufficient growth to replace existing cash generators as well as structuring of existing investments to increase direct equity returns.


The average pricing of IDC loans is fairly distributed around the prime rate (at prime minus 0.5), strongly reflecting the developmental role of the IDC as a financier of higher-risk ventures.

The IDC’s pricing methodology is based on a cost-plus calculation, recognising development impact and financial return for risks taken. In addition to accommodating industry dynamics, income generated by the loan portfolio should cover at least the cost of borrowings, impairments and a substantial portion of operating costs.

Loan tenure

The bulk of IDC loans (41%) is assigned a tenure between five and ten years, followed by an interval of between three and five years (28%). Only 3% of the loans are repayable in more than 10 years. The average loan tenure across all business units is six years. It is important to monitor loan tenure to avoid a borrowing/lending terms mismatch.

The funding tenure is determined on the basis of the period required for the customer’s business to reach maturity.
A customer in the Green Industries sector will, for example, be assigned a longer loan tenure as these are long-term projects. A business partner in the agro industry sector will also be granted an extended loan tenure, depending on the time it would take for a specific type of crop to mature. Existing mature businesses will receive a shorter tenure of around three years, as such businesses are expected to yield the required return from the IDC’s investment much sooner.

Extensions of loan tenure via either the extension of the final draw-down date or deferment of capital repayments also impact on the overall tenure of the IDC’s loan portfolio.

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