27 Aug IDC disburses R17 billion and mobilises R28 billion in co-funding to support industrial growth and jobs
Johannesburg – The Industrial Development Corporation (IDC) disbursed R17 billion in development funding for the year ended 31 March 2026, a 4.3% increase on the previous corresponding period, while mobilising a further R28 billion from co-funders and investment partners.
This funding is expected to create 71 228 jobs, underscoring the IDC’s continued role in supporting industrial development, investment mobilisation and inclusive growth despite persistent economic challenges, shifting trade dynamics and heightened global uncertainty. These investments supported industrial expansion, localisation, infrastructure development and value-chain strengthening across multiple sectors, reinforcing our role as a catalyst for economic growth and industrial competitiveness.
Inclusive growth remained central to the IDC’s mandate, with on-balance sheet transformation funding disbursements of R3.5 billion and SME disbursements reaching R1.3 billion, significantly exceeding the R411 million target. “These results were achieved in a difficult operating environment, with many of our clients continuing to face pressure from subdued demand, infrastructure constraints and global trade uncertainty.
For export-orientated business partners, developments such as the United States tariff measures and uncertainty around African Growth and Opportunity Act (AGOA) benefits have reinforced the need to build greater resilience and diversify markets”, said Mmakgoshi Lekhethe, the IDC’s Chief Executive Officer.
During the reporting period, South Africa’s real GDP growth rose to 1.5% in the reporting period from 0.4% in the previous corresponding period, supported mainly by stronger household consumption. Inflation moderated to 3.3%, creating space for monetary easing and contributing to a 75-basis-point reduction in the repo rate to 6.75%.
While these developments provided some relief, fixed investment remained weak and industrial sectors continued to operate under pressure. Improved energy availability and ongoing structural reforms, however, supported signs of resilience and strengthened the basis for a more sustained recovery.
“Although growth remains below the level required to meaningfully reduce unemployment and poverty, the foundations for recovery are strengthening. The IDC will continue to support investments that expand industrial capacity, improve competitiveness and create opportunities in sectors with long-term growth potential,” said Lekhethe.
Financial performance
The IDC remained profitable at Company level, with net profit rising to R2.3 billion from R1.8 billion. At Group level, however, losses and negative performance across selected subsidiaries and associate companies resulted in a R4.7 billion loss. Notwithstanding these results, the Corporation strengthened key portfolio indicators, supported by disciplined capital allocation and improved asset quality management.
“Despite the economic headwinds, the IDC funding model remains resilient. We improved our Company debt-to-equity ratio to 47.7% and reduced non-performing loans to 35.1%, strengthening our ability to support industrial development, investment mobilisation, job creation and economic transformation,” said Malevu, the IDC’s Chief Financial Officer.
During the year under review, the Corporation advanced approximately R2.3 billion in renewable energy funding, supporting improved energy security, green industrialisation and business resilience. Other priority areas for continued investment include:
- Critical minerals and battery manufacturing
- Green and circular industries
- Agro-industrial development
- Digital infrastructure
- The blue economy
The IDC is also expected to play a significant role in South Africa’s efforts to modernise and expand its electricity transmission network. Through its partnership with the National Transmission Company South Africa (NTCSA), the IDC aims to align infrastructure rollout with localisation and industrialisation goals. This approach is intended to ensure that South African manufacturers play a central role in the build programme.
Said Malevu: “The IDC continues to align its investments with the emerging industries and value chains that will shape the future of South Africa’s economy. Our strategic focus is now increasingly directed towards future-facing, job-rich sectors with strong potential to enhance industrial competitiveness, create sustainable employment and position the country to benefit from shifts in global investment and trade patterns”.
