Integrated Report 2025

INVESTING IN SOUTH AFRICA'S INDUSTRIAL FUTURE

Reflecting on 2024/25:
A year of resilience, recalibration and renewed purpose
In 2024/25, the Industrial Development Corporation (IDC) remained steadfast in its mission to drive inclusive, sustainable industrialisation, even as the South African economy navigated turbulence marked by policy transitions, global trade shifts and domestic infrastructure challenges.

Our Suite of Reports

The Corporation continues to deepen transparency through our integrated reports.

Annual Financial Statements

Audited in accordance with IFRS, showcasing financial resilience.

Integrated Report

A comprehensive view of strategy, impact, risk and performance.

Additional online information

A detailed view of IDC’s human capital and partnerships.

ESRG Report

Our ESRG journey provides a comprehensive overview of IDC’s ESRG programme and its related performance, as guided by various frameworks.

Annual Results Powerpoint presentation

A comprehensive report of the IDC’s 2025 Annual Results.

Sustainable Bond Framework booklet

This Sustainability Bond Report of the Industrial Development Corporation (IDC).

Report Presentation Video

“In a year marked by complexity and recalibration, the IDC demonstrated that industrial development is not just an economic imperative, but a social contract with the people of South Africa. Our focus remains firmly on enabling sustainable transformation, supporting industries of the future, and creating pathways for inclusive growth.”

– Chairperson, Busi Mabuza

Guided by its founding mandate and refined by a sharper focus on value-chain development, the IDC took bold steps to support businesses across sectors — from early-stage entrepreneurs to large-scale manufacturers. This included disbursing R16.3 billion in funding (an increase from R15.9 billion in 2023/24), supporting more than 16,000 jobs and deepening impact through targeted interventions in agriculture, critical minerals, renewable energy and township economies.

It was also a year of meaningful transition. In February 2025, the Corporation welcomed Mmakgoshi Lekhethe as its first female CEO, marking a historic leadership moment for the IDC. Under her direction, the organisation reaffirmed its commitment to future-forward transformation, inclusive growth and greater sustainability alignment across all investments.

“We stand at a defining moment in our history. My leadership will be bold, deliberate and measurable – strengthening our developmental impact and ensuring every rand invested creates lasting value for future generations.”
– CEO, Mmakgoshi Lekhethe

Financial Overview

While economic conditions placed pressure on performance, the IDC maintained financial resilience.

REVENUE
R 0.1 bn

↓ from R23.4 bn

PROFIT AFTEr TAX
R 0.1 m

↓ from R7.5 bn

IMPAIRMENTS
R 0.1 bn

↑ from R19.5 bn

IMPAIRMENT RATIO
0.1 %
improved from 36.3%
DISBURSEMENTS
R 0.1 bn
TRANSFORMATION FUNDING
R 0.1 bn
TOTAL INVESTMENT FACILITATED
R 0.1 bn

Driving Performance Amidst Complexity

Despite significant headwinds - including a weaker rand, sluggish global demand, and high input costs - the IDC remained operationally strong and developmentally focused.

While net profit declined to R1.8 billion (from R7 billion in 2023/24), total funding approved reached R13.4 billion, and the IDC’s commitment to transformation grew to R26.6 billion. The Corporation’s total assets stood at R144.3 billion, underscoring a stable platform for long-term growth despite volatility in investment returns.

Efforts to strengthen the quality of the loan book continued, with impairments and non-performing loans actively managed through enhanced oversight and tailored support to distressed partners. The year’s performance reflects not just financial recalibration, but a redoubling of developmental intent.

NET PROFIT
R 0.1 bn

↓ from R7 bn

TOTAL FUNDING APPROVED
R 0.1 bn
TRANSFORMATION FUNDING
R 0.1 bn
TOTAL ASSETS
R 0.1 bn
CO-INVESTMENT MOBILISED
R 0.1 bn
from private and public partners

Recognition of Excellence

The IDC’s commitment to transparency and quality reporting was once again acknowledged at the 2024 Chartered Governance Institute of Southern Africa (CGISA) Awards, where it earned top honours in the State-Owned Enterprise category for its Integrated Report — a testament to its standard of governance and accountability.

Refining Strategy, Unlocking Opportunity

As global and domestic challenges evolve, so too does the IDC’s strategy. In 2024/25, the organisation sharpened its focus on value-chain development, deepened its commitment to industrial diversification and recommitted to transformation at scale.

Five core priorities shape IDC’s strategic outlook:

01

Deepening industrial development and localisation.

02

Advancing transformation and inclusive participation.

03

Growing SMMEs and township economies.

04

Maintaining financial sustainability.

05

Building a high-performance, future-ready organisation.
These priorities are aligned with the National Development Plan, Medium-Term Development Plan, and SDGs — ensuring the IDC plays a catalytic role in shaping an inclusive, green and globally connected economy.

Sectoral Impact in a Changing Economy

Economic growth in FY2024/25 remained muted at just 0.4%, with structural challenges evident in reduced fixed investment (-3.9%) and persistent unemployment (32.9%). Within this context, IDC support was especially critical.

AGRICULTURE

Agriculture faced setbacks from drought and disease but recovered in H2.

IDC funding (R6.3bn) helped stabilise this vital sector.

MINING

Mining, particularly PGMs, contracted amid declining global demand.

IDC responded with focused support to safeguard local operations.

MANUFACTURING

Manufacturing declined by 1.2%, reflecting weak demand and high import competition.

Investments in localisation and downstream value chains aimed to counteract this trend.

Township Economies

Over R2.2 billion was allocated to 450 township businesses, driving grassroots job creation and strengthening local value chains.

Transforming through the ESRG and Impact Framework

IDC's ESRG and Impact Framework now guides all of IDC's investment cycle.

Key highlights include:

Four co-funded utility-scale renewable projects contributing 219MW to the grid.

Ongoing development of 17 projects targeting 2.1GW.

R22 billion cumulative investment in renewables to date.

R400 million launched via the Junior Mining Exploration Fund for critical minerals.

GREEN HYDROGEN HUB

IDC’s R500 million seed funding unlocked R2 billion in co-investment, establishing Africa’s first large-scale green hydrogen plant, expected to create 3,000 jobs and position SA as a net exporter by 2030.

Partnerships that Power Progress

Across 2024/25, the IDC hosted 81 formal stakeholder engagements, maintaining a collaborative approach across government, industry, and development finance institutions (DFIs).

International partnerships advanced key priorities such as the green transition, regional integration, and youth-led innovation — with the IDC playing an active role in shaping the African Continental Free Trade Area (AfCFTA) opportunity. A new strategic engagement framework now underpins all regional collaborations, emphasising co-financing, pipeline development, and knowledge exchange.

Our People,
Our Foundation

As of March 2025, the IDC’s team included 1,127 trained employees, 84 internship and learnership participants, and a strengthened leadership core. Staff turnover rose to 9.2%, prompting a review of culture, succession planning and retention.

The permanent appointment of executives — a shift from traditional fixed-term roles — reflects a deeper investment in institutional knowledge and continuity.

Internally, efforts are underway to modernise systems and streamline operations. A digital transformation programme has been prioritised to reduce manual processing and enhance client experience.

Governance that
Builds Trust

The IDC Board concludes its term on 31 July 2025, having steered the organisation with diligence and foresight.

Key governance milestones include:

The Board’s commitment to continuity during the transition to the 7th administration and the appointment of a new CEO has ensured strategic consistency and institutional stability.

Closing Reflections:
Looking Forward

The IDC’s story in 2024/25 is one of steadiness in complexity.

In the face of an uncertain global environment and a slowly recovering domestic economy, the Corporation reaffirmed its purpose, redefined its strategy, and reignited its developmental ambition.

As it enters the next chapter, the IDC remains committed to building a more inclusive, resilient and future-focused economy – driven by catalytic investments, grounded in transformation, and elevated by partnerships that expand possibilities.

“Every investment we make is a deliberate step toward a more inclusive, resilient, and sustainable South African economy – creating value today, and laying foundations for generations to come.”

– Mmakgoshi Lekhethe, CEO