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

Turnaround times

The IDC has taken a number of steps to address concerns from our customers that the Corporation takes too long to assess project applications and that this process is cumbersome to funding applicants, particularly for smaller projects.

The IDC funding process is clearly defined with approved systems and procedures. IDC has set clear targets as to time requirements for each step in the process from receiving applications, completing basic assessments, conducting due diligence, approval of funding, legal agreements and signing thereof. Each step along this process is measured in terms of turnaround time.

Applications for finance are received at IDC head office in Sandton or in the IDC regional offices and are registered at source. The applications are then dealt with in the regional offices or the Pre Investment Business Centre (PIBC) for Gauteng applications, up to the completion of a basic assessment (which includes the gathering of relevant information and the testing of key assumptions). The completed basic assessments, together with a positive or negative recommendation, are then passed on to the relevant SBU, who in turn conduct a due diligence and present a report for approval or rejection to the relevant approval authority. Post approval legal agreements are drawn up, sent to the client and signed. IDC allows itself 90 calendar days for the completion of this whole process.

During July 2011, the IDC approved an initiative to conduct non-complex transactions with a target of 15 to 17 working days to complete these transactions, measured from start of due diligence to legal agreements having been sent to the client.

In a further effort to improve on efficiencies and specifically turnaround times, the IDC launched the Pre-Investment Business Centre (PIBC) at its head office in Sandton in 2011 specifically to deal with all enquiries, walk-ins, applications and basic assessments for Gauteng customers. PIBC conducts both Initial Screenings (mandate, strategy and financial viability tests), as well as Basic Assessments for all Gauteng applications.

Assistance to compile business plans is also made available through referrals to the IDC website (Business Plan Tool), Seda or via the use of IDC Business Support consultants.

Regional offices together with PIBC now deal with around 80% of all IDC applications and basic assessments and it is envisaged that this percentage will increase to about 90% going forward.

All the abovementioned initiatives have contributed extensively in reducing the overall IDC turnaround times.

The measured turnaround times for non-complex transactions improved by 37% for the past financial year compared to the previous corresponding period.

This improvement means the corporate target of 17 working days for processing non-complex transactions was reached.

Although it is clear from the above statistics that turnaround times have improved significantly, IDC is committed to improve on these numbers in the future and is continuously looking for ways to ease the process of applying for funding.

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
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