1. IDC Annual Report - 2006/07 Accelerating Sustainable Economic Development
Geoffrey Qhena CEO
10 October 2007

2. Mission and Vision
“To be the primary driving force of commercially sustainable industrial development and innovation to the benefit of South Africa and the rest of the African continent”
Contribute to the generation of balanced, sustainable economic growth in South Africa and Africa
Economically empower the South African population
Promote entrepreneurship through the building of competitive industries and enterprises based on sound business principles

3. IDC’s Role
To support sustainable development, IDC invests in businesses showing economic merit;
Some businesses are not often funded because of perceived high risks;
IDC views this as a market failure;
IDC does more detailed assessments and funds investments which would not otherwise happen;
IDC plays a critical role in assisting industries to develop, in ways which meet South Africa’s needs:
Supporting industrial policy development;
ASGISA;
Investments in targeted sectors;
Cooperate with national and provincial government, DFIs, and other COTII institutions.

4. IDC’s Objectives Sustainable job creation; Regional development BBBEE;
Rural areas
Provincial spread
Townships
IDZs;
BBBEE;
SMEs;
Entrepreneurs;
Enhance balance of payments position by encouraging exports;
Support industrial development in the rest of Africa;
Achieve these goals while remaining financially sustainable.

5. 2006/07 Annual Highlights
Facilitated the creation of a record of more than direct jobs in South Africa with a further in the rest of Africa as a result of funding activities;
R5.9 billion in funding approvals for 241 enterprises;
About 24% of the jobs to be created and 20% of approvals to three provinces with highest unemployment rates;
69% of the number of approvals relate to SMEs;
162 transactions totalling R3.4 billion to black empowered companies;
More than 680 SMEs received training and business support;
Earmarked R250 million in venture capital for the next five years;
Facilitated six workers’ trusts and 15 community foundations in our investments;
The IDC won Businessmap Foundation/Business Report award for Top Development Financier for Black Economic Empowerment for the fourth consecutive year, with one of our clients winning the Top Black Business award and another two clients reaching finals in this category.
Job Creation
Approval Value
33117 jobs in South Africa is the highest achieved in the last 13 years
3816 jobs were saved (2006:991) contributing to 12% of the total number of jobs. 50% of jobs saved were in the clothing and textiles industries
5.63 jobs were created for each R1m of IDC investment
More than jobs created will be in black empowered companies
24% of jobs created in South Africa will be created in three provinces with the highest unemployment rates (Eastern Cape, Limpopo, North West)
5099 new jobs expected to be created in townships with 1448 jobs saved.
168 of the number of approvals went to SMEs,
R597 million were approved for 32 businesses operating in or near townships (Inanda, Hammanskraal, Shoshunguve, Phoenix, Alexander, Dobsonville, Mdhatha, Mamelodi, Jabulani, Thembisa)
R1 360 million were approved for 41 businesses operating in the South African rural areas
*9-month period

6. Some Development Agency Projects
Regional Development
Some Development Agency Projects
R597 million approved for developments in townships, expecting to create new jobs and save existing ones;
Over jobs will be created in rural districts of South Africa;
“Development agencies” enable IDC to participate more intensively in rural development and unlock economic potential of various provinces;
The agency concept starting to bear fruit, with various projects identified and being implemented.
Agency
Inception
Project Information
Nkonkobe
2003
Instrumental in reviving Kat River citrus development
Blue Crane
2004
Boschberg Mountain Development (with Tourism) estimated R800 m project
Flower project 8 women own project
Vegetable seed project with 28 beneficiaries
Airport project accessed R5m grant and employs 53 temporary workers
Fruit project 4 permanent and 32 temporary workers
Pomegranates project (4000 tree pilot)
Hibiscus
Beachfront plan approved – project team in place, funding received from National Treasury
Mandela Bay
Govan Mbeki Avenue upgrade (R 12m)
Donkin Reserve (R 9m)
UDZ tax incentive facilitation
Cleaning and security (300 jobs)
Illembe
Amatikula Fisheries (R36 m) KZN Growth Fund
3 Gijima funded projects, 5 under review
. The Agency Development Support Department (ADS) has been charged with the primary responsibility of providing a dedicated programme of financial and technical assistance to municipalities seeking to establish such local development agencies. The primary objectives of these agencies are:
To promote and develop economic potential on a local and/or regional basis by building on opportunities and unique competitive strengths of the region’s economy;
To leverage public and private resources for development around opportunities which offer investment, employment, economic and development potential/opportunities;
To foster/develop the innovation and entrepreneurial potential and activity which supports and drives economic growth;
To manage the spatial organization of the area , in a socially efficient manner, particularly through the use of public land and targeted private projects;
To strengthen the respective areas and perceived environment so that it can compete for capital investment necessary to develop its full economic potential.
Six (6) projects from agencies have enjoyed investigation and are under consideration by relevant SBU’s , namely :
Boschberg Tourism Development Node (Blue Crane)
Clackson/BCDA Hydro Project
Albesera Aircraft manufacturing
Wits Ultra-light Aircraft Project/Somerset East Aviation Project
East London Harbour Upgrading
Desert Raisin Expansion

7. Value of Empowerment Approvals Number of Empowerment Approvals
BEE
162 transactions totaling R3.4 billion to black empowered companies;
BEE accounted for 68% of the total number of approvals and 58% of the total value of financing approved;
Specific targeting of expansions and new BEE companies, and reduced focus on BEE acquisitions financed;
32% of funding approved was for expansions and start-ups by black business;
R1 026 million approved for acquisitions;
Extension of the competitive financing scheme.
Value of Empowerment Approvals
Number of Empowerment Approvals
Bethlehem farmers trust
KWV foundation
Golden Frontiers Citrus foundation
DMC diamonds
Living Gold
Arisa foundation
Broodkraal foundation
Kenaf Foundation
EC Biomass foundation
Global forests
Coast skills community foundation
Elgin homes
*9-month period

8. Examples of Business Support provided
SME Support
Financing provided to 167 SMEs;
70% of the number and 18% (R985m) of the value of IDC’s approvals are to SMEs;
To provide finance to a wider range of SMEs (especially new entrepreneurs), some gaps need to be addressed:
Lack of skills;
Lack of necessary support systems;
Lack of access to financial institutions;
Entrepreneurial development initiatives introduced to promote entrepreneurship and enhance sustainability of IDC funded businesses
IDC business support to clients;
More than 680 delegates attended entrepreneurship courses sponsored by IDC in Gauteng, Northern Cape, Eastern Cape, Limpopo, and Free State.
Examples of Business Support provided
Client
Support Provided
Hlumisa - Eastern Cape
Assistance in selecting and setting up financial management systems, design and documentation of costing system, design of leads management system (new clients) and developing marketing strategy
ITT - East Rand
Assisted in implementing QA system, capacity management
VAC Cleaning -Cape Town
Assisted through development of financial management system, and in strategic decision-making while mentoring owners over long period

9. Competitive Financing for Development
R1 billion fund providing financing for 5 schemes expired December 2006:
Pro SME Jobs Scheme;
Pro BEE Expansionary acquisitions scheme;
Pro Franchise Scheme;
Pro Forestry Scheme;
Pro Orchards Scheme;
Loans priced at up to prime less 5%;
Assisting 115 SMEs to create 7450 direct job opportunities;
Extension of Pro Orchards, Pro Forestry, Pro BEE Expansionary Acquisitions Schemes.

10. Some High Impact Projects
IDC identified the berry industry as a industry with potential:
High value agricultural crop
High international demand – healthy food consumption trends
Labour intensive
Export crop
Project
Location
Impact
Blue Mountain Berries
George, Western Cape
Blueberries, 70ha, 450 jobs
Amathole Berries
Stutterheim, Eastern Cape
Blueberries, 330ha, 2,300 jobs
Echo Berries
Brits, North West
Strawberries
Amajuba Berries
Charlestown, KwaZulu-Natal
Raspberries, 100ha, 795 jobs

11. Some High Impact Projects
The fish processing industry
IDC’s current exposure (including commitments) to this industry = R60m
Exports
The budgeted export volumes will contribute at least R6.7m in export earnings per annum.
Sub-sectors supported:
Abalone;
Fish Packing & canning; and
Ice production for the fish industry.
Regional: exposure in Western, Eastern & Northern Cape;
BEE exposure includes:
Bluefin;
Mosselbay Fish Processors
Industry development needs
Shortage of processing capacity (hake and lobster) in Hout Bay;
Lack of HACCP compliant facilities;
Lack and availability of ice.

12. Some High Impact Projects
Eastern Cape Biomass
Black empowered company situated in Coega Industrial Development zone;
Manufacture of fuel pellets;
tons per month for European markets;
Biomass is an environmentally friendly alternative source of energy;
In line with IDC strategy to invest in clean fuels;
370 full time jobs created;
Ownership shared with workers and community;
IDC investment R59m

13. Some Other Investment Approvals
Marine fabrication and construction yard catering for the West African offshore oil and gas industry – Saldanha, Western Cape – 700 permanent jobs – 5% community participation
Mining services for the diamond mining industry – Barkley West, Northern Cape – 212 permanent jobs – 10% workers participation
Cement blending supplying the cement brick and construction industry – Mabopane, North West – 50 permanent jobs – 100% black owned and managed
Tourist lodges catering for the local and foreign 3-star market – Nkambeni, Mpumulanga – 250 permanent jobs
Expansion of dried fruit plant catering for the export market – Marulaneng, Limpopo – 80 permanent jobs
250 bed private hospital – eThekwini, KwaZulu-Natal – 570 permanent jobs
Call centre services – Randburg, Gauteng – 540 permanent jobs
Production of fertilizers, further beneficiating the upstream chemicals industry’s products – Sasolburg, Free State – 58 permanent jobs – 44% black ownership
Stainless steel strip cold rolling mill – Coega, Eastern Cape – 105 permanent jobs

14. Beyond Investment Herdmans – Atlantis, Western Cape
Herdmans is a producer of linen yarn, located in Atlantis in the Western Cape.
IDC became involved with the company in 2001, when it provided funding to help fund a portion of Herdmans Ireland’s operations to relocate to South Africa.
By 2005, all the Irish operations except a dye house and the marketing operations had been relocated to the premises in Atlantis.
At the start of 2005, quotas on Chinese exports in the textiles sector were lifted worldwide, and the company soon started facing difficult market conditions.
By 2006, the company’s Irish bankers and shareholders withdrew support for the company and Herdmans ceased manufacturing.
In an attempt to save some of the jobs at the company, IDC took ownership of the company and started a process of restructuring.
With the help from the landlord, Khula, and major creditors such as the City of Cape Town, 95 jobs were saved in the company.
Herdmans is still facing significant challenges, but the IDC is positive about the company’s future.
IDC’s development focus extends beyond the investment decision, and plays an integral part of the investment monitoring process

15. Touching Lives Knysna Elephant Park
STANFORD MOTAU, Head Trainer – Leads the handlers and their partner elephants in rigorous daily training sessions.
SHEILA MSOPI, Ticket Office and Education Centre – ‘My job is very interesting, I’m learning a lot.’
NOLA NDEBENDWANA, Statistics and Bookings – Studying towards a Diploma in Public Finance and Accounting.
MOSEKETSI MPETA, Senior Account Manager, Tourism SBU – ‘As a development finance institution, we seek to fund those projects which commercial banks consider to be high risk. For a very long time the IDC was the only institution funding tourism. And when we decide to fund a project, we conduct a very detailed due diligence, so we know exactly the risks that are involved.’
NIEK WOLMARANS, Senior Account Manager, Tourism SBU – ‘A normal commercial bank would probably not have funded a project like this. But now, in an area on the border of the Eastern Cape, which is very poor, they are employing about 60 people, and they are probably supporting quite a few people themselves.’
STANFORD MOTAU - ‘The park’s ‘visitor friendly’ elephants are trained by STANFORD MOTAU, head trainer. He leads the handlers and their partner elephants in rigorous daily training sessions starting at 6.30 each morning. Stanford lives on the property, with his wife, Florence, who also works on the farm. The newly built staff residences feature a common room equipped with entertainment facilities.
SHEILA MSOPI - The park’s facilities include an interactive elephant education centre for visitors. SHEILA MSOPI grew up near Queenstown in the Eastern Cape and had to cut short her tourism studies at a college in Cape Town for financial reasons. But she has grown since she recently started working in the ticket office at the elephant park and she introduces visitors to the education centre. ‘My job is very interesting,’ she beams. ‘I’m learning a lot.’ In addition to its conservation impact, the park has been a good source of new jobs in the area. About nine people are now employed per elephant (five directly, four indirectly).
NOLA NDEBENDWANA - NOLA NDEBENDWANA handles the statistics and major bookings for the Knysna Elephant Park that now receives over visitors per year. In her free time, Nola is studying towards a Diploma in Public Finance and Accounting. Her goal is to ensure that visitors get the best out of the variety of experiences on offer at the park.

16. Touching Lives Bethlehem Farmers’ Trust
JOSEPH TSHABALALA, Field Manager – Unemployed for eight years before being selected as one of the 94 farmers who would be trained in managing and maintaining apple orchards.
PIETER FOURIE, Project Manager – ‘If this project were to fail in the future once ownership has been transferred into the hands of the farmers, I would not have done my job properly’
MASONTAHA TITEBE, Farmer and Project Secretary – ‘I don’t want to focus only on apple farming. In coming years I want to see myself farming cattle too.’
RIAN COETZEE, SBU Head: Food, Beverage & Agro Industries – ‘We often review projects with community involvement. Quite often the individuals in the community trust get lost because it’s a trust with thousands of beneficiaries. At Bethlehem Farmers’ Trust there’s real ownership – clearly identified beneficiaries who have taken up ownership of the project.’
KALVENIE RAJA, Senior Account Manager, Risk Capital Facility SBU – ‘What I like very much about this project is its focus on training and skills development. Empowerment is not just about ownership. Through training, the farmers’ operational involvement has made the project more meaningful to them, boosting its sustainability and removing dependency on others to do for them what they now can do for themselves.’
JOSEPH TSHABALALA - Formed in 1998, with assistance from the IDC, the Development Bank of South Africa and the departments of agriculture and land affairs, 106 hectares of apple orchards are being developed, while training and empowering unemployed people from historically disadvantaged communities, to establish them as farmers. Field manager JOSEPH TSHABALALA was unemployed for eight years before being selected as one of the 94 farmers who would be trained in managing and maintaining apple orchards.
PIETER FOURIE - Project manager PIETER FOURIE is a born and bred farmer passionately committed to seeing the project prosper. ‘If this project were to fail in the future once ownership has been transferred into the hands of the farmers, I would not have done my job properly,’ he boldly declares.
MASONTAHA TITEBE - ‘We are not women and men here. We are farmers,’ says Agri mentor Hendrik Pheko. ‘We don’t treat women differently or men differently. In line with the IDC’s commitment to gender empowerment, 30 percent of the BFT farmers are women. MASONTAHA TITEBE joined the project a year after matriculating. Her salary enables her to rent her own place and, as a single parent, to pay both her children’s school fees. ‘The project has impacted on my life in a big way,’ she says. As well as being a fully trained farmer, she works in the BFT offices as the project’s secretary. ‘I don’t want to focus only on apple farming,’ she says. ‘In coming years I want to see myself farming cattle too.’
We often review projects with community involvement. Quite often the individuals in the community trust get lost because it’s a trust with thousands of beneficiaries. At Bethlehem Farmers’ Trust there’s real ownership – clearly identified beneficiaries who have taken up ownership of the project.’ - RIAN COETZEE, SBU Head: Food, Beverage & Agro Industries
‘What I like very much about this project is its focus on training and skills development. Empowerment is not just about ownership. Through training, the farmers’ operational involvement has made the project more meaningful to them, boosting its sustainability and removing dependency on others to do for them what they now can do for themselves.’ - KALVENIE RAJA, Senior Account Manager, Risk Capital Facility SBU

17. Touching Lives Amka Products
ISMAIL KALLA, Amka CEO – ‘It’s always been a win-win relationship. They’ve been more than a bank to us, offering us technical as well as financial support. They forced us to budget forward and think in terms of good results, getting us focused in the right direction.’
RONALD MAKOLA, Black Like Me Marketing Manager – ‘Although we treat the SADC region as our local market, we are busy establishing ourselves in the Democratic Republic of Congo, Mozambique, Angola, Kenya and Nigeria.’
MARY KWINDA, Lecturer Amka Academy – ‘I was very curious about this thing of hair. With no formal education, I saw that it was a skill that could help me to advance myself. Students from Zimbabwe, Togo, Nambia – they all know me’
MOHAMED SHAIK-AMOD, Senior Account Manager, Chemicals, Textiles and Allied Industries SBU – ‘Amka is one of IDC’s success stories. We’ve been with them for many, many years, so there’s a long history to the association. We’ve taken them from a small SMME to a very large corporate, which is now a multi-billion rand turnover company, if you factor in all the companies within the group.’
WILLIE FOURIE, Head: Chemicals, Textiles and Allied Industries SBU – ‘One of our clients started out supplying solely to Amka and their business has grown hugely. Having developed a niche of its own they no longer supply Amka, so the Kallas have gone on to develop another company which manufactures jars for their products. Amka favours developing new entrepreneurs, so the pool gets bigger and bigger around them, while they increase their own footprint.’
Established as a humble trading store on Boom Street, Marabastad, in the late Fifties, today Amka Products is one of the largest family-owned health and beauty companies on the continent, with 20 leading brands selling in more than 35 African countries. ‘We’ve been blessed with a winning team,’ says CEO ISMAIL KALLA
‘The kinds of products we sell make it possible for me to manage my hair properly,’ says Black Like Me CEO CONNIE MASHABA. Connie has been in the business of hair care for 22 years. In 1985, her husband, Herman, started a small business in Hammanskraal, called Black Like Me. Soon the factory in Garankuwa was too small… In 1993, following a fire that burned their factory to the ground, they opened a new plant in Midrand and were there until 2005, when they joined the Kalla brothers at Amka.
Black Like Me (BLM) marketing manager RONALD MAKOLA became part of the Amka team when the two companies merged in He joined the legendary Afrocentric cosmetics house during the landmark year of 1994, having graduated as an analytical chemist at what is now the Tshwane University of Technology. After working on the production side for several years, he was appointed marketing manager in 2001, and quickly started developing stand-alone brands.
‘Amka is one of IDC’s success stories. We’ve been with them for many, many years, so there’s a long history to the association. We’ve taken them from a small SMME to a very large corporate, which is now a multi-billion rand turnover company, if you factor in all the companies within the group.’ - MOHAMED SHAIK-AMOD, Senior Account Manager, Chemicals, Textiles and Allied Industries SBU
‘One of our clients started out supplying solely to Amka and their business has grown hugely. Having developed a niche of its own they no longer supply Amka, so the Kallas have gone on to develop another company which manufactures jars for their products. Amka favours developing new entrepreneurs, so the pool gets bigger and bigger around them, while they increase their own footprint.’ - WILLIE FOURIE, Head: Chemicals, Textiles and Allied Industries SBU

18. Touching Lives Ntuso Forestry
THAMI ZIMU, Owner – ‘I couldn’t forget the way I grew up. It was an important foundation for me. If there is nobody in your area to look up to, it is very difficult to pick yourself up.’
BHEKI MHLUNGU , Farm Manager – ‘I’m managing to support my family and send my three kids to school.’ As one of the permanent employees, he will soon be a beneficiary of the workers trust.
RENTIA VAN TONDER, Head: Wood & Paper SBU – ‘Given the situation in the country with limited resources in timber, we decided that, as the IDC, we would like to make a difference. But initially we found that it was impossible given our general guidelines and norms. We needed long-term finance and special funding structures, and had to think out of the box to achieve true empowerment in this sector. We structured the transaction in such a way that Thami and her family trust would acquire 70 percent of the company and the workers’ trust would acquire 30 percent, which supports our objective to facilitate broad-based structures. That’s really close to my heart, as it’s in a rural area with high poverty where the people that will benefit had very little.’
THAMI ZIMU - Ever since she was a girl growing up in rural Ndonyane on KwaZulu-Natal’s South Coast, THAMI ZIMU has had her eye on the prize. Born into a hardworking family, she started out helping her parents, who were subsistence farmers. In 1977, she began her career as a nurse and was soon leading the Edendale Hospital Sociology Department while lecturing at the University of KZN. Then she changed direction and joined Sanlam as a financial advisor, quickly earning herself a Sanlam Top Achiever award. She also bought and successfully operated a ‘very busy’ Kentucky Fried Chicken franchise at the Durban station. But, after losing her husband, Thami decided to return to her roots, and bought a timber and sugar cane farm in the Umzinto District. ‘I couldn’t forget the way I grew up,’ she says. ‘It was an important foundation for me.’ Sappi began mentoring her soon after she joined the timber farming fraternity, so when the pulp and paper manufacturer acquired the hectare Pierremont Farm near Bulwer with the idea of establishing a BEE enterprise on it, she was the obvious choice. With IDC financing, Thami was able to buy Pierremont and now heads up a 1046-hectare forestry operation. Talking on her cellphone in her sunglasses as she stomps through the fields in gumboots, she is the epitome of the modern farmer.
BHEKI MHLUNGU - As Ntuso Forestry’s farm manager, BHEKI MHLUNGU, lives in the bottom farmhouse near the Pholela river and visits his family at home in Bulwer about three times a week. Highly skilled in forestry, he started out as a labourer back in 1988, but went on to take several courses, including a foreman’s course, at Sappi’s training centre in Richmond. When the job with Thami came up, he leapt at it as he had been retrenched by Sappi and was ‘sitting at home’. ‘Now I’m managing to support my family and send my three kids to school,’ he states proudly. As a local guy who has pushed himself to attain his current leadership position, Bheki is a role model for others in the community. And as one of Thami’s permanent employees, he will soon be a beneficiary of the workers trust, established to ensure that Ntuso’s labour force participates in the wealth created by the project. When the transaction is completed next year, the 31 workers will jointly own 30 percent of the business, benefiting both them and their families. The Ntuso worker’s trust is a shining light for the farming sector, in which working conditions for labourers and contractors are generally poor.

19. Financial Results

20. Abridged Group Income Statement for the Year Ended 31 March 2007
R’ million %
Analysis of Net Profit/Loss
Revenue
Cost of Sales
Financing Expenses (8)
GROSS PROFIT
Exxaro
Net Capital Gains
Other Income
Operating Expenses (10)
OPERATING INCOME
Share of Equity-Accounted Investments
PROFIT BEFORE TAX
Taxation (27)
PROFIT FOR THE YEAR
*9-month period

21. Abridged Group Balance Sheet as at 31 March 2007
R’ million
Strengthened Financial Base
Assets
Loans, Advances and Investments
Cash and Cash Equivalents
Property, Plant & Equipment & Inventories
Other Assets
*9-month period - 10 20 30 40 50 60 00 01 02 03 04
05* 06 07
Financial year
Capital and Reserves - R billion 0% 5%
10%
15%
20%
25%
30%
35%
40%
Debt/Equity Ratio - %
Fair value revaluation
Excl. fair value revaluation
Debt/Equity ratio
Equity and Liabilities
Capital and Reserves
Long-term Loans
Deferred Taxation
Other Liabilities
Debt/Equity Ratio 11% 14%

22. Summary and Prospects

23. 2006/07 Summary
Leadership in Development entrenched in the organisation;
Record levels of job creation;
Improvement in development impact largely the result of increased activity;
Financial performance exceeded budgets;
Undertook a review of all processes in the IDC to determine fit with strategy and efficiency;
Rebranding process to reflect IDC development role;
Businessmap/Business Report BEE award 3rd consecutive year
2nd year of improving customer satisfaction;
IDC on track to exceed its 5yr job creation target.

24. IDC’s Role in Implementing the National Industrial Policy
IDC’s role in supporting the policy is on two levels:
Directly through the provision of finance and other services;
Indirectly through the support and finance that it provides to specific businesses.
The three domains of South Africa’s industrial policy and illustrative interventions
Currency/interest rates
Transport/Logistics
Utility regulation
Labour cost/productivity
Cost of capital: Selected sectors/activities
Competition policy
Selected import tariffs
Market access
Cost based interventions
Support for labour intensive sectors/activities
Small Business
Co-op support
BBBEE
Spatial interventions
Inclusion based interventions
Sector / activity specific financing
Manufacturing excellence support
Industry-specific technical infrastructure
Skills development
Innovation and technology support
Leveraging public expenditure
Standard, quality and accreditation support
Industrial upgrading interventions             
Direct support through the IDC’s services and activities
Indirect support through the businesses that IDC finance
Legend

25. Sector Specific Actions Supporting the Industrial Policy Action Plan (IPAP)
The following initiatives related to the four lead sectors are already in place:
Capital/Transport equipment and Metal Fabrication
SOE Public Sector Capex Programme
National Tooling Initiative
Project Hoefyster
Initiatives are also underway to improve competition in the upstream metals sector
Automotives and Components
Supply development programme to improve component manufacturing capacity & expertise and increase of local content
Chemicals, Plastic Fabrication and Pharmaceuticals
Direct involvement in the Fluoro-chemicals expansion initiative
Promoting the local production pharmaceuticals
Forestry, Pulp and Paper, and Furniture
Forestry
Pulp and Paper
Furniture
Capital/Transport equipment and Metal Fabrication
SOE Public Sector Capex Programme
Part of the forum between the dti, DoPE, DST, SOEs, including Transnet, Eskom and PBMR to discuss the implications of the competitive supplier development programme, review of supplier development programmes of each SOE.
Discussions held with Transnet and Eskom on the roll-out plans of their capex programmes.
Plans and discussions for the IDC to help Transnet in managing an Enterprise Development Fund is at a very advanced stage.
National Tooling Initiative
Working closely with the Institute for Advanced Tooling, Tshwane University of Technology and Tshumisano on all initiatives to rehabilitate the tooling, foundries and forging sector.
The investment wing enterprise, namely Rapid Design Technology (RDT), an existing interest of the IDC is in discussions with a German technology company in order to train, upskill and manufacture using their latest technology with RDT.
Meetings held with the Gauteng Tooling Initiative to discuss the initiative and recapitalization challenges; Capex programme of the SOEs and quick-win projects; and research and knowledge sharing including sector developments and support initiatives.
Project Hoefyster
Supporting SMEs supplying Denel to ensure local production of specific products destined for the defence industry
Automotives and Components
Supply development programme to improve component manufacturing capacity & expertise and increase of local content
Discussions with NAACAM on needs-analysis exercise so that funding products are structured taking into account the constraints of their members (SMEs). Discussions around the Automotive Empowerment plan were also held.
Discussions with several OEMs, including VW SA, Ford Motor Company, Toyota on their programmes to localise manufacturing of components for future models.
Chemicals, Plastic Fabrication and Pharmaceuticals
Direct involvement in the Fluoro-chemicals expansion initiative
Participation in the Hydro-fluoric acid project (currently in pre-feasibility)
Engaging with DST, DTI and other players, like NECSA and NCP (Chlor-Alkali Holdings) on potential further downstream and supplementary projects.
Promoting the local production pharmaceuticals
Twofold initiative to develop the local manufacturing of antiretrovirals (ARVs): to facilitate the establishment of businesses which can manufacture the raw materials; and to facilitate an expansion of existing drug manufacturing capacity in the country.
Development of capacity for vaccine production in South Africa.
Exploring opportunities to develop fluorine compounds which are used as active ingredients in many pharmaceutical products.
Forestry, Pulp and Paper, and Furniture
Forestry:
The IDC’s is focussing on two initiatives in this sector namely afforestation and forestry services.
Specific programmes have already been implemented to improve the access to finance for companies participating in afforestation projects. This includes facilities with longer repayment terms, taking into account the long lead time to harvesting trees.
The forestry services initiatives focus on the development of emerging contractors providing siviculture, harvesting, and other services.
Pulp and Paper
Initiative being investigated on the best way for IDC to support the paper recycling industry
Furniture
Exploring opportunities of an integrated value chain, including furniture manufacturing in the Kokstad region in conjunction with Hans Merensky, the dti and DWAF
All Business Units’ Sector Development Strategies are being reviewed to ensure maximum alignment and impact in these sectors

26. Sector Specific Actions Supporting the Industrial Policy Action Plan (IPAP) (continued)
Initiatives related to other sector actions:
ASGI-SA
Business Process Outsourcing & Offshoring
Biofuels
Tourism
Other substantive sector projects
Diamond beneficiation and jewellery
IDC’s structure, industry knowledge and networks makes it one of the premier organisations for the implementation of the industrial policy

27. Prospects
Be leaders in the implementation of the national industrial policy;
Enhancing regional presence:
Roll-out of regional managers
Develop regional development strategies for IDC
Closer to clients
Improved customer service
Approve first investments under the internally managed venture capital fund;
Enhance product development in line with client needs and economic development focus areas;
Double impact on job creation in 5 years;
Investigate feasibility of key projects to improve South Africa’s competitiveness.

28. Industrial Development Corporation
19 Fredman Drive, Sandown
PO Box , Sandton, 2146
South Africa
Telephone (011)
Facsimile (011)