1. Trade and Industry Portfolio Committee
Report back to -
Trade and Industry Portfolio Committee
Presented by:
Andile Reve
Executive Vice-President (Sectors)
March 2001

2. Contents Vision, Mission and Core Strategies A transformed IDC
The past financial year (2000)
The current financial year (2001)
IDC managed government programmes

3. Vision ...
“To be the primary driving force of commercially sustainable industrial development and innovation to the benefit of South and southern Africa”

4. Mission ...
Contribute to the generation of balanced, sustainable economic growth in southern Africa
Economically empower the southern African population
Promote entrepreneurship through the building of competitive industries and enterprises based on sound business principles

5. Core Strategies ... 4
Providing risk capital to widest range of industrial projects
Maintaining its financial independence
internal profitability
divestments from mature assets
borrowings
Identifying and supporting opportunities not yet addressed by the market
Establishing local and global involvement & partnerships in projects that are rooted in or benefit SA and SADC
Building upon and investing in human capital in ways that systematically and increasingly reflect the diversity of SA’s society

6. Contents Vision, Mission and Core Strategies A transformed IDC
The past financial year (2000)
The current financial year (2001)
IDC managed government programmes

7. HR and Corporate Support Services
IDC’s Operational Structure ...
Professional
Services
Marius Mostert
Financial and Funding
Gert Gouws
HR and Corporate Support Services
Lesé Matlhape
16 departments are tasked with providing the necessary operational services to the SBUs
13 strategic business units (SBUs), each focussed on specific economic sectors
CEO / President
Khaya Ngqula
Sectors
Andile Reve
Projects
Jaco Kriek
The successful completion of an internal restructuring exercise within the IDC and the introduction of client focused SBU’s and processes, improved finance approval lead times, reduced by about two thirds.

8. IDC’s Focus Areas Empowering of emerging entrepreneurs
Support manufacturing, tourism development, agro-industries and small-scale mining
New initiatives:
telecommunications and IT
retail and service sectors
government tenders
venture capital
Continue with the establishment of internationally competitive, large, resource- based beneficiation projects and downstream value-added industries
Regional (SADC and Africa) development

9. IDC’s involvement in the rest of Africa ...
IDC’s current SADC involvement: 30 projects in 9 SADC countries
The IDC’s investment portfolio in the SADC region (excl. SA):
aluminium smelting,
mining activities,
agriculture,
manufacturing and
tourism.
Mandate extended to invest in the whole of Africa

10. Contents Vision, Mission and Core Strategies A transformed IDC
The past financial year (2000)
The current financial year (2001)
IDC managed government programmes

11. Annual Highlights R
Increased investment assistance amounting to R4.2 billion vs. R3.3 billion in 99/00 (about 5.9% of national fixed investment);
Total number of approvals increased by 78% over 99/00;
Approval of a R300m venture capital fund;
The registration of Exim Finance;
The introduction of a flood relieve scheme (total value R300 million); and
The IDC’s involvement within SADC was enhanced and now comprises 30 projects. 11

12. IDC’s Financial Results ...
Financially strong
- Assets = R17.4 billion
- Retained income = R631 million
Ranked 29th in South Africa’s “Giants League” i.t.o. assets
Ranked 4th largest SA public corporation i.t.o. assets and 5th largest i.t.o net income

13. Abridged Consolidated Income Statements
for the year ended 30 June (R’mil)
Net income from operating activities
Associated entities’ net retained loss (683) (177)
Net capital profits
Net income before taxation
Taxation (4) (199)
Net income after taxation (17)
Minority interest (3) 2
Net attributable income for the year
Dividend 50 50
Retained income for the year
2000
1999
% Change

14. Abridged Consolidated Balance Sheets
as at 30 June (R’mil)
Financing of industrial undertakings (5)
Fixed assets and loans
Other assets
Total assets
Capital and reserves
Outside shareholders’ interest 2 58
Long-term liabilities (16)
Other liabilities
Total funds
Debt / Equity ration 49% 62%
2000
1999
% Change

15. Performance: SBU approvals ...

16. IDC’s Development Impact ...
Contributed 5.9% to manufacturing investment in productive capacity
Investments facilitated during 2000:
Created additional jobs
Maintained permanent jobs
Assisted 415 industrialists
Generated R4 bn additional annual export earnings

17. Empowerment Financing ...
Credit facilities for delivery on government contracts
Wholesale financing
Warehousing of shares
Take-overs and acquisitions
Loan finance
Approvals to empowerment firms
% of total number of approvals 6% 9%
14%
19%
27% 0%
10%
20%
30%
1996
1997
1998
1999
2000

18. SME financing’s value - from 11% of approvals in 1996 to 42.3% in 2000
SME: Authorisations (R million)
100
200
300
400
500
600
<R1m
R1 - R10m
R10 - R20m
R20 - R60m
Total assets
R million
1998
1999
2000

19. Approvals:July 1996 to June 2000
Performance: Regional Development ...
Approvals:July 1996 to June 2000
Promoted non-metropolitan development (54% of total number of approvals) 6% 4% 7% 5%
20%
14% 2% 3%
15%
16%
17%
23%
% of total approvals
excl. Saldanha
- Value
- Number

20. Contents Vision, Mission and Core Strategies A transformed IDC
The past financial year (2000)
The current financial year (2001)
IDC managed government programmes

21. Targets: SBU approvals (2001)
24%
6% increase in number compared to 99/00 actuals
Value of approvals likely to increase by 14% by year-end from last year
Aim to accomplish a more balanced portfolio (sectoral and regional)

22. Contents Vision, Mission and Core Strategies A transformed IDC
The past financial year (2000)
The current financial year (2001)
IDC managed government programmes

23. Management of Government Programmes
Name of Fund
Funder/Donor
Purpose
Funds under management
Support Programme for
DTI
Technology Promotion
R109m per year
Industrial Innovation
Dept of Minerals &
Development of small scale mining
Small Mining Fund
R9,82m
Energy
ventures
Enhance productive efficiency through
training of the social partners, and the
Workplace Challenge
DTI
R0,470m
application of best in practice principles
Fund transferred to NPI
Draft new legal framework for South
Danida
DTI/Danish Aid
R0,365m
Africa business
Facilitate restructuring of DTI and
Norwegian Grant Fund
DTI/Norwegian Aid
associated institutions
R2,1m
Widening and deepening of
empowerment by assisting "Black"
National Empowerment Fund
DTI/IDC (R100m each)
R5,105m (at historic cost)
businesses with equity participation
IDC handles establishment of fund
Research fund focussing on international
FRIDGE
DTI
R14m per year
competitive capability of local industry 23