IDC R8.4bn funding facilitates job creation

The Industrial Development Corporation (IDC) has authorized funding of R8.4 billion in the last financial year, which will undoubtedly significantly help when it comes to job creation.

“This stands out as the largest amount ever for South African-based investments. Funding approvals in the past year under review are envisioned to generate 19 650 full time jobs in addition to preserving a further 11 650, which has a combined influence on employment of 31 300, up from 25 000 in 2010.

“An additional 8 100 job opportunities are likely to be created as a result of direct linkages to actions in the informal economy,” proclaimed the IDC in its financial results for the year ended 31 March 2011.

The IDC posted a R2.7 billion profit as a consequence of enhanced profitability from operations, performance of equity accounted investments, containment of operating expenses and lower impairments.

The South African economy recovered gradually from the latest recession, considering the pace of growth increasing in momentum towards the latter part of 2010 and firming in the initial quarter of 2011.

“We have maintained our focus both on sustaining and expanding high impact manufacturing capacity and also have been successful in enhancing our influence on job creation,” IDC CEO, Geoffrey Qhena, stated.

 

IDC CEO, Geoffrey Qhena

 

From the overall magnitude of funding approvals, 97 percent happen to be within the priority sectors determined in the New Growth Path (NGP), which includes manufacturing, infrastructure, agriculture and the mining value chain; 49 percent of funding approvals was allocated to developments in provinces other than Gauteng, Western Cape and KwaZulu-Natal to guarantee provincial fairness.

“The IDC will continue to leverage its portfolio to boost development outcomes. This approach consists of establishing ring-fenced programmes to subsidise industry development, much like the R10-billion Gro-e-Scheme with concessionary terms and conditions geared towards job creation, that has been launched in February 2011,” explained Qhena.

The corporation in addition has authorized R4.1 billion of the R6 billion allotted to support companies in distress. Over 17 000 job opportunities were generated and preserved as a consequence of the R2 billion UIF scheme unveiled in May this past year, R1.5 billion of which has already been authorized.

“IDC is going to make available R102 billion over the upcoming five years for investment. To accomplish this degree of investment, the collaboration of a variety of stakeholders and social partners is vital. These comprise of businesses, co-funders, labour, government and civil society,” said Qhena.

In his budged vote in April, Economic Development Minister Ebrahim Patel pointed out that over the next five years, green industries is going to be allocated R22.4 billion, while mining and beneficiation is going to be allocated R22.1 billion. Manufacturing will get R20.8 billion while the agriculture value chain will receive R7.7 billion.

 

For more information contact IDC directly – CLICK HERE

Source: BuaNews

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