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IDC to pump money into carmakers

Aug 16 2011 07:24 Sapa

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Johannesburg - The Industrial Development Corporation (IDC) aims to use the automotive industry to partly drive its attempts to create sustainable jobs, according to Business Report on Tuesday.

IDC spokesperson Mandla Mpangase said that the motor sector was ramping up its production because of export contracts and that the organisation was trying to encourage component suppliers to original equipment manufacturers to take advantage of available IDC facilities.

This was in line with the New Growth Path and Industrial Policy Action Plan, which focused on improving growth in key manufacturing sectors, such as the automotive, clothing and textile industries.

Mpangase said the IDC had made R6.1bn available to support distressed car companies during the global financial crisis, but that only R4bn of this had been disbursed.

IDC chief executive Geoffrey Qhena disclosed last month that the state-owned financier had the capacity to invest a further R102bn over the next five years to stimulate growth sectors in the economy.

 

 
 
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