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Johannesburg - The Industrial Development Corporation (IDC) said on Thursday it had committed R3.1bn to distressed companies in mainly the metal, mining, clothing and motoring sectors to help them weather the global economic crisis.
"We estimate that over 17 500 jobs will be created and saved as a result of this assistance," the IDC said in a statement.
The money was paid over in 53 transactions and amounts to just more than half of the R6.1bn set aside in relief funding in 2008 to help South African businesses survive the fallout of the economic meltdown.
"Approximately 70% of the disbursed funding has been allocated to companies in the metal fabrication, motor, clothing and textiles, mining and forestry sectors," the IDC said.
"The additional funding provided gives companies the lifeline they need to implement strategies to turn around their operations."
A global recession set in in 2007 and 2008 after the collapse of the subprime market in the US severely curbed the ability to secure credits and funding for businesses.
The International Monetary Fund recently said that South Africa weathered this crisis well due its "prudent" economic and fiscal policies.
"We estimate that over 17 500 jobs will be created and saved as a result of this assistance," the IDC said in a statement.
The money was paid over in 53 transactions and amounts to just more than half of the R6.1bn set aside in relief funding in 2008 to help South African businesses survive the fallout of the economic meltdown.
"Approximately 70% of the disbursed funding has been allocated to companies in the metal fabrication, motor, clothing and textiles, mining and forestry sectors," the IDC said.
"The additional funding provided gives companies the lifeline they need to implement strategies to turn around their operations."
A global recession set in in 2007 and 2008 after the collapse of the subprime market in the US severely curbed the ability to secure credits and funding for businesses.
The International Monetary Fund recently said that South Africa weathered this crisis well due its "prudent" economic and fiscal policies.
