Investing in the economy

Investing in the rest of Africa

The IDC has been operating outside South Africa in the rest of Africa since the late 1990s. Financing totalling nearly
R16 billion was approved during the past 10 years for projects in the rest of Africa. These approvals mainly related to agriculture and agro processing, mining, infrastructure and tourism (mainly hotels). The IDC's exposure to entities in more than 20 African countries currently amounts to R6.8 billion (at cost).

The IDC aims in future to move away from ad hoc investments in the rest of the continent towards a more proactive approach aimed at integrating value chains leading to higher levels of South African economic growth and job creation. This is to improve the competitiveness of industry in the region as a whole by:
  • Increasing the competitiveness of South African industry over the long term; and
  • Increasing market integration and economic linkages with neighbouring countries.
The IDC has developed a broad strategy for the rest of Africa. The main thrust of the strategy entails two approaches:
  • A sector-based approach (informed by the NGP and IPAP); and
  • A country/region-based approach (considering, amongst others, NGP and IPAP, South Africa’s foreign policy and trade priorities, and pan-African initiatives).
The overall aim of the strategy will be to ensure that local jobs are being created or maintained through increasing the competitiveness and providing a platform for growth for South African industries. The benefit that an investment in the rest of Africa has to bring to South Africa includes:
  • Investment promotes exports of South African capital goods and services;
  • Investment will add to the integration of value chains by adding to imports of South African goods and services;
  • Investment will provide more competitive inputs to South African industries; or
  • Investment promotes South African ownership and expansion of local businesses into the rest of Africa, where they benefit the local supply chain.

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