Established in 1940, we are a national development finance institution set up to promote economic growth and industrial development. We are owned by the South African government under the supervision of the Economic Development Department.
To be the primary driving force of commercially sustainable industrial development and innovation for the benefit of South Africa and the rest of Africa.
The Industrial Development Corporation is a national development finance institution whose primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa, and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens. The IDC achieves this by promoting entrepreneurship through the building of competitive industries and enterprises based on sound business principles.
We do everything based on the following principles:
The Industrial Development Corporation of South Africa Limited (IDC) was established in 1940 by an Act of Parliament (Industrial Development Corporation Act, No. 22 of 1940) and is fully owned by the South African Government under the supervision of the Department of Economic Development. It is a national development finance institution mandated to promote economic growth and industrial development, and develop domestic industrial capacity.
As a key implementing agency of industrial policy, the IDC’s activities currently centre on the National Development Plan (NDP), the New Growth Path (NGP) and the Industrial Policy Action Plan (IPAP). We identify sector development opportunities aligned with policy objectives and develop projects in partnership with stakeholders. By developing industrial capacity, the IDC achieves specific outcomes, such as facilitating job creation through the companies we fund.
In addition, IDC funding continues to promote regional development and integration, economic empowerment of communities and growing black industrialists. We remain committed to promoting environmentally sustainable growth and increasing sectoral diversity to boost the local production of goods. We also play a critical role through our subsidiary, the Small Enterprise Finance Agency (Sefa), in promoting entrepreneurial development and growing the SME sector.
We have contributed to the implementation of South Africa’s industrial policy for more than 70 years and established, among others, the petro-chemicals and minerals beneficiation industries. We have stimulated large industrial projects in these industries – acknowledged today as the cornerstones of the country’s manufacturing sector – and influenced the establishment of industries in fabricated metals, agriculture and clothing and textiles.
During the 1990s, our mandate was expanded to include investment in the rest of Africa. Currently, our investments in Africa include mining, agriculture, manufacturing, tourism and telecommunications. The IDC’s funding is generated through income from loan and equity investments and exits from mature investments, as well as borrowings from commercial banks, development finance institutions (DFIs) and other lenders. We align our priorities with government’s policy direction and remain committed to developing the country’s industrial capacity, as well as playing a major role in facilitating job creation through industrialisation.
We support industrial capacity development by proactively identifying and funding high-impact projects; leading the creation of viable new industries; and using diverse industry expertise to drive growth in priority sectors. This is done to facilitate the creation of sustainable direct and indirect jobs; promoting entrepreneurial development and growing the SME sector; and transforming communities and growing black industrialists. We fund industrial development projects, play a catalytic role in promoting partnerships across industries within and outside our borders, and promote regional economic growth, through:
Proactively indentifying and funding high-impact and labour-intensive projects;
Leading the creation of viable new industries
Using our diverse industry expertise to drive growth in priority sectors; and
taking up higher-risk funding projects.
Between 2013 and 2017, we approved funding to the cumulative value of R68 billion, and approved 1 001 funding applications. In the same period, we have created and saved a total of 344 006 direct and indirect jobs in addition to the 32 155 jobs created in rural areas. In this period, the funding approvals we granted were divided as follows: