CASE STUDY

!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.

Satisfying customers

Services

Services

It is recognised that improving business performance requires many ingredients. These include the creation of a conducive policy environment for enterprise development and competitiveness, creation of structures to access finance and provision of non-financial services including training, consultancy and advisory services, market assistance, information, technology development and transfer, and business linkage promotion.

IDC provides a service to its prospective clients, existing clients and general stakeholders through various initiatives, including: Regional Offices, PIBC, Call Centre & Contact Centre, Web-based application system, Business Support Programme (technical support), Advisory services, Project development, Support to National Government and Training.

Regional offices – provide a range of services to their customers and stakeholders. These services are aimed at developing local entrepreneurs and local economies. These services include; new business development, assessing and screening applications for finance including the completion of basic assessments, participation in local economic development initiatives, identification of localisation opportunities, rural and community development, local government strategic support and capacity building amongst various stakeholders including DFI staff.

The Pre-Investment Business Centre (PIBC) – provides a professional “door into the IDC” for potential Gauteng clients by catering for the initial screenings of applications (mandate, strategy and financial viability tests), as well as Basic Assessments. PIBC has a database of other financiers to which unsuccessful applicants can be referred as well as a sound knowledge of all IDC products available to applicants.

The IDC call centre – deals with telephonic enquiries as well as enquiries via email (including online enquiries) from possible applicants, nationally.

Web-based application system – the Business Plan Tool is part of a bigger initiative that was rolled out this year, where applicants can make enquiries online to the IDC, as well as submit their business plans online. These enquiries and business plans are then routed to each of the regional offices, where they are attended to in the same manner as walk-in enquiries, or calls. This is particularly helpful in instances where applicants are in remote areas, and where physical visits to regional offices or Head Office might not be feasible at enquiry stage. Since the online applications and enquiry system has been launched, more than 2 500 enquiries and applications have been dealt with already through this medium.

Advisory services – the regional offices, together with the PIBC, in its interaction with applicants have to advise clients on how to rectify their applications, provide business plan support, refer clients to Seda for business plan preparation, provide advice on dti incentives or to refer them to other funders including DFIs, i.e. sefa or NEF. Regional offices also advise local government on how to proceed with identified projects including linkages with possible investors and providers of technical assistance.

Project development – a sizeable proportion of applications require a project approach to take it to a bankable stage. These projects are time consuming as it takes years to unfold to implementation stage. IDC approved projects increasingly require regional involvement to assist in the implementation through facilitation of i.e. water rights applications, environmental impact assessments and land restitution issues.

Support of national government – include the participation in and input at the provincial dti business strategy round table events held in each Province. Regional offices together with the IDC SIP team based in Sandton co-ordinate and facilitate the SIP 5 (Northern Cape Development Corridor) and SIP 8 (Green Energy) events/workshops on behalf of the Presidential Infrastructure Co-ordinating Commission (PICC).

Training and coaching – a formal internship programme is run through the regional offices which includes the training of matriculants to become qualified secretaries (certificated) as well as the work readiness training of Graduates.

Business Support (BS) – BS is an expert function that is provided to clients pre and post-investment and supports mainly SBUs, the Post Investment Monitoring Department (PIMD) and Workout and Restructuring Department.

The BS functionality is delivered in regions through the regional offices. By using its regional resources in Operations Head Office (OHO) the BSP has increased its BS outreach to IDC clients throughout the country based on BS requests from internal stakeholders.

The objectives of the BSP are to:
  • Improve prospects of business partner sustainability;
  • Entrench IDC’s developmental role through the provision of pre- and post-investment technical (non-financial) support to augment IDC’s financing products; and
  • Ensure proper broad-based black economic empowerment (B-BBEE) participation in IDC investments.

IDC business support activities comprise three broad functionalities; Business Management (BM), Socio-Economic Development (SED) and Broad-Based Black Economic Empowerment (B-BBEE) verification.

Business Support Products include:

Pre-investment products – Business Plan preparation, BS participation in DDs to determine the clients BS needs, Business Advisory services and Distressed Fund Turnaround Plan assistance.

Pre- and post-investment products – Diagnosis of business management challenges, establishment and registration of workers and community trusts – formation of trusts, Broad-Based Black Economic Empowerment (B-BBEE) and assisting clients to comply with IDC’s B-BBEE policy requirements.

Post-investment products – Mentorship, quality accreditation, accounting software and training and accounting assistance.

The total amount of BS funding (client own contribution + grants) committed for the reporting period:
Period   Client  
contribution  
(loan)  
(Rm)  
Grant  
(Rm)  
Total  
(Rm)  
2012   8.0   13.1   21.1  
2013   7.7   11.6   19.2  

Business support monitoring and evaluation

Survey
In 2010 Operations Head Office decided to asses and measure the impact of BS services. As a result, for the FYs 2011 and 2012 BSP conducted customer satisfaction surveys to assess the impact of its services across three areas: impact to IDC, impact to client, and impact to employees.

In the last three financial years, the Head Office and Regions Department have been engaging the services of an independent and outsourced research company to conduct annual customer satisfaction surveys to determine the impact of the Business Support Programme’s intervention to IDC clients. The overall business support (BS) rating out of IDC’s corporate 5 point scale was as follows:
  • 3.7 in 2011; 3.8 in 2012 and 3.7 in 2013. This indicates that BS performance is stabilising around a 3.7 rating. BSP aspires to average a rating of 4 or more to achieve excellence.
Compared to the previous FY, the 2013 FY BS survey results point to improvements in the following general areas:
  • Diagnosis of problems/opportunities;
  • Timeous implementation of the intervention;
  • BS contribution to the sustainability of the clients' businesses;
  • Overall business management of the clients’ businesses; and
  • Facilitation of skills transfer to the company.
These areas of improvement are medium to long term in perspective. However, the results indicate a decline in the more immediate and shorter-term general areas, such as:
  • Communication between the consultants and clients;
  • Quality of reporting;
  • Financial performance, as a result of the intervention;
  • Provision of relevant and quality advice during intervention; and
  • Achievement of the Terms of Reference.

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.


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