30 Apr IDC Commits to Ramp up Transformation, Dismisses Anti‑transformation Narrative
Johannesburg – The Industrial Development Corporation (IDC) has reaffirmed its commitment to supporting black‑owned and black‑controlled enterprises, emphasising that transformation and economic empowerment remain central to its developmental mandate.
South Africa’s largest development finance institution, which has in recent weeks faced public scrutiny regarding allegations of anti‑transformation practices and governance concerns, said that contrary to public perception, the IDC has continued to deepen its support for transformation‑oriented businesses. Black‑owned enterprises currently account for approximately 60% of the IDC’s funding portfolio.
While the IDC has acknowledged concerns raised by some entrepreneurs and business formations, it cautioned against generalising individual cases or characterising all distressed outcomes as evidence of institutional bias or anti‑transformation conduct.
Speaking at a media briefing held at the IDC, IDC Chief Executive Officer Mmakgoshi Lekhethe said the Corporation has to date supported 73 companies through its partnership with the dtic’s Black Industrialists Scheme, with total funding of approximately R7.28 billion approved in support of these enterprises.
She noted, however, that the challenging macro‑economic environment has placed strain on many businesses across the economy, including those supported by the IDC.
“In the current economic environment, characterised by structural constraints, some businesses are taking strain. Business distress and liquidation are not unique to IDC‑funded companies, nor are they unusual in a weak economy. South Africa has experienced elevated levels of business failure in recent years due to factors such as electricity supply challenges, logistics disruptions, rising input costs and subdued economic growth. For example, Statistics South Africa recorded 1 534 liquidations in 2025,” said Lekhethe. During the past financial year, the IDC approved approximately R2 billion in funding specifically to support distressed businesses, deploying interventions such as restructurings, balance‑sheet re‑engineering, working‑capital support, and business‑rescue processes.
“What is often not accurately reflected in public commentary is that around 60% of the IDC’s investment book is consistently invested in black‑owned, black‑empowered and black‑shareholding companies. That reality underscores both our transformation focus and the pressures faced by these businesses in a difficult economic climate,” Lekhethe said.
Addressing governance‑related allegations, Lekhethe reaffirmed the Corporation’s commitment to ethical conduct and accountability, while cautioning against unsubstantiated claims.
“The law of this country is clear: individuals are presumed innocent until proven otherwise by a competent legal authority. This principle applies equally to IDC employees. While allegations must always be taken seriously and tested through proper processes, unsubstantiated reporting can have serious implications for institutional reputation and stakeholder confidence,” she said.
Speaking at the same briefing, IDC Chairman Gloria Serobe announced that one of the key governance measures that will be implemented is the establishment of an Independent Complaints Review Panel, aimed at strengthening confidence in how client and stakeholder concerns relating to process fairness and service experience are addressed.
The proposed mechanism would complement existing governance and complaints‑handling processes, providing an additional independent layer of oversight, without replacing the IDC’s credit‑approval structures.
Minister of Trade, Industry and Competition, in his address, reaffirmed the IDC’s strategic role as a development finance institution of the state, emphasise the importance of accountability and due process, and place the Corporation’s work within government’s broader programme to support industrialisation, transformation and inclusive economic growth.
