IDC to hike funding fivefold
Johannesburg - The Industrial Development Corporation (IDC) expects to increase its funding approvals for businesses more than fivefold in the next five years to aid economic growth and development.
"The IDC expects its loans and advances to increase to approximately R50bn in the next five years," wrote chief executive Geoff Qhena in the latest annual report. The figure in financial 2010 was R12.5bn, a 17% increase in disbursements and loans from the R10.6bn achieved in financial 2008.
Its funding approvals of R9.4bn in financial 2010 were the second-highest in the organisation's history and was likely to create up to 32 000 jobs, said IDC acting chairperson Monhla Hlahla.
The IDC also tried to aid economic development in rural areas by quadrupling its funding of investments in those areas to R4.6bn.
"The overall levels of approvals, at R9.4bn was the second-highest on record and is likely to result in the creation and saving of more than 25 000 jobs in South Africa and approximately 7 000 in the rest of the African continent," wrote Hlahla.
Move to go green
The R9.4bn was topped only by the R10.8bn funding approval of 2008, when the SA economy was in recession. Qhena wrote in the same report that 2009 was "unlike anything" the IDC had experienced.
It "remained a critical port of call" for businesses struggling to keep their operations afloat under the extreme economic recession experienced two years ago, said Hlahla.
Such companies received R1.4bn from the corporation's distressed companies' fund. The funding is estimated to have saved more than 8 800 jobs in a number of industries, including the clothing and textile sector.
Hlahla said the IDC has also positioned itself to play a key role in the development of alternative sources of energy.
"Our commitment to the development of green industries is reflected in the R11.7bn budgeted for investments in this area over the next five years," said Hlahla.
A large bulk of the funding, R8.3bn, would be for feasibility studies into wind farms, solar thermal and photo-voltaic electricity generation. A total R33m has been approved for exploring the feasibility of several wind farms and solar thermal photo-voltaic plants in the Northern Cape.
Did Monhla Hlahla mention how much she had benefitted from last year's 'loans' to companies ion whcih she has a personal direct or ideirect stake?
This is public cash, does anyone care?
Green is all very well if the country can afford it!
To spend R8.3bn on feasibility studies appears excessive. I would have thought that with existing data and a few measurements then the feasibility costs should be minimal. The IPP's are more suited to this type of task and development. Keep government out of this.
Photovolaic systems do work but are still costly. Only good for around 9 hours per day. Storage of this derived energy can be very expensive if stored in batteries, could be used to pre-heat water for boilers.
Wind farms work but you need a constant supply of wind to make them viable hence the tendency to have them on the coast in the sea.
Solar thermal only good for around 9 hours per day but is the more obvious choice since this is already viable in many countries. This could be retrofitted to some existing power stations if space permits. Hot water energy storage saves a lot of energy in running boiler plant.
"R1.4bn from the corporation's distressed companies' fund is estimated to have saved more than 8 800 jobs in a number of industries, including the clothing and textile sector."
This equates to R159000 per job saved. I am assuming that these companies paid no tax due to the need for handouts. The salaries earned by those jobs saved are unlikely to be R159000 per person per annum. Was the money well spent?????
Real @ Paul
Please man refrain from commenting if you have little or no knowledge!! IDC is a self financing institution and only got gov cash in the 1940's. Since then it has been self sustaining...As for Monhla recieving loans indirectly or otherwise, I wish he sues the hell out of you!!!
Has IDC not realised how many bee 'companies' are living of these funds until they run dry. Why work when the IDC can supply a lifestyle you expect then retire. 'Wakey wakey'!!
WOW, setting aside more money for "black entrepreneurs" aka buddies to the ANC and IDC bigwigs to borrow, buy their fancy cars, drink Moet and Walker Blue, and then declare for bankruptcy. Brilliant plan that will work!! From my company's dealings with the IDC they cannot even plan a pissup in a brewery let alone use funds appropriately to ensure rural development etc. With one deal they can stimulate a rural development, lay down better infrastructure and employ directly and indirectly more than 200000 thousand people, but this will mean less of the cake for their buddies, idiots!!
BBEE, Doped and Paul, you might want to go read Thami Fraser's 'undestanding transnformation' in my news24. Paul, is Monhla Hlahla really at the IDC? phew!
This money comes from the taxpayer in the first place. So first you destroy jobs by taking money from exactly where it creates jobs - businesses - and then you "save" a tiny percentage of those destroyed jobs by giving the money "back" (or redirecting it to areas that don't create as many jobs).