IDC boasts creating 31 300 jobs

2011-08-07 15:13

Johannesburg - Over the past financial year the Industrial Development Corporation (IDC) created some 31 300 jobs by making loans worth R8.4bn available to enterprises.

Chief executive Geoffrey Qhena said this would have to double if the institution were to make an impact.

South Africa’s unemployment rate is around 25% – a terrifying figure.

If the IDC really wants to make a difference, it will have to double or more than double that sum, he said.

According to the country’s industrial plan the IDC needs to facilitate more than 300 000 new jobs in the next five years.

To this end an investment of R100bn has been put aside.

Qhena said there was a dedication and willingness on the part of the IDC to reach this objective, but it has to be easier for people to do business in the country.

He therefore welcomed the establishment of the Infrastructure Commission and the Job Creation Commission recently announced following the Cabinet’s July lekgotla.

The IDC has a strong balance sheet and can therefore make R100bn worth of loans available by using money it already has or by borrowing it.

The money will therefore be available, he said. What are needed are good businesses and ideas in which to invest.

But if one looks at what our economy needs, this amount is not much, and so the IDC would wish to do more.

Qhena said there had been a large-scale effort by the IDC to promote entrepreneurship in South Africa over the past six to seven years.

It had established, among other things, a support unit for enterprises, after realising entrepreneurs needed not only funding but other non-financial support as well.

The IDC identifies areas in which an entrepreneur needs additional assistance or where there are shortcomings and tries to help with these.

This, said Qhena, was one of the IDC’s efforts to make it easier for entrepreneurs.

Over the past 18 months the institution had ensured that it broaden its presence, because for a long time it had had only three offices outside Gauteng.

It asked itself how accessible the IDC could be and has opened offices in each province, together with satellite offices.

It wants to be visible and closer to entrepreneurs, making it easier for them to get access to IDC services, he said

The IDC has also opened offices closer to other institutions offering small-business support, such as the Small Enterprise Development Agency (SEDA) and Khula Loans offices.

This meant that if the IDC could not help people they could more easily be referred to Khula or the South African Micro-Finance Apex Fund (Samaf), which could certainly assist.

Earlier this year Economic Development Minister Ebrahim Patel announced that Khula, which provides small businesses with finance through financial intermediaries, Samaf, and the IDC’s small business loan book would merge to make access to funding easy.

  • Nasdaq7 - 2011-08-07 15:35

    Yes they create jobs when they invest in entrepreneurs and businesses. Invest it in the poor and they invest in cigarettes and booze.

  • Nasdaq7 - 2011-08-07 18:06

    Yes they create jobs when they invest in entrepreneurs and businesses.

  • The Captain - 2011-08-07 19:24

    8.4 billion. One billion is 1000 million. Thats 8400 million Rand.Thats 270 000 Rand to create one job. And they are proud of this ? Give me a million and I will create more than 4 jobs!!

      Creeky - 2011-08-08 06:49

      I started my business with R5000-00 and within a year I had employed 15 people...eventually took my business OUT of SA, because of UNION INTERFERANCE!!!! 76 people LOST their jobs.... and 8 black dudes LEFT SA with me... Now running my business in Europe, UNHINDERED BY UNIONS!

  • Carl Muller - 2011-08-07 19:25

    Only entrepreneurs create jobs. Big business and government cannot.

  • J T - 2011-08-07 22:34

    Does the IDC give firms soft loans to retrench workers at any factory? Can anyone explain this anomaly?

  • Isolar - 2011-08-07 23:49

    These are lies. The IDC operates like a commercial bank. We are a solar water heating manufacturing company and we applied for a loan to expand and which will create 50 direct jobs and a 250 indirect jobs. Although we have contracts our application was declined, because our solar water heater we developed was not SABS approved and certified. We notified them that another government agency financed the cost to have our Solar Water heater tested and certified at SABS and is submitted to SABS for testing. The turn around time for testing is between 4 to 6 months. Our company started in 2007 and successfully completed a tender with a municipality in the Western Cape for 250 SWH and are currently busy with a project to supply and install 300 SWH at a low cost housing township for the City of Cape Town. Our board of Directors consists of an accountant, Auditor, two mechanical engineers, attorney and a financial services provider. Our company is registered with ESKOM as a supplier and distributor and is a SESSA member. Our company is fully compliant in all aspects still the IDC see us as a financial risk. They are adamant that they will only finance our company on approval of our SWH by SABS. We spend a considerable amount of money on a consultant who is fimiliar with the IDC systems and accounting modules not to make mistakes with our submission of our BP and still our application was declined.Politicians make grand statements but SMME is still not helped.IDC is failing SMME'S Tru

      samzaG - 2011-08-10 14:04

      I suspect your innovation is nt a prime solution for IDC, it so unfortunate that your request was turned down, I must confess IDC has been extending their hand generously, I have seen it , its nt talk show. Anyway I would advice you to approach Khula or National Empowerment Fund for your proposal

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