| business & FINANCE
IDC approvals jump to R15.3 billion for 2017 financial year
I
n 2017, the Industrial Development Corporation (IDC) demonstrated its ability to support the industrial diversification of the local economy and recorded impressive growth, driving transformation in the economy while remaining financially sustainable.
Highlights in the 2017 financial year include profit growing to R2.2 billion, an increase in funding approvals to R15.3 billion, with marked increase in approvals for black industrialists, other black entrepreneurs, women and youth entrepreneurs. IDC approvals are expected to create 18 192 new jobs and support the retention of 2 675 jobs that would otherwise have been lost. “The balance sheet remains strong with assets growing to R129.8 billion mainly driven by 11% improvement in the listed portfolio as well as new approvals. The IDC continues to play a counter-cyclical role during an economic downturn ” said IDC Chairperson Busisiwe Mabuza. IDC CEO Geoffrey Qhena said the weak economic conditions, low business, and consumer confidence, the impact of the drought as well as relatively low commodity
prices and demand made this a particularly difficult operating environment. “Naturally, these factors impacted negatively on our business,” said Qhena. The Corporation recorded a significant improvement in group profit to R2.2 billion compared to the previous year's R223 million, despite losses of R902 million and R787 million in Foskor and Scaw Group respectively. The process to conclude the restructuring of Scaw is being finalised and is expected to result in the introduction of strategic equity partners for its main operating divisions. Seventy-five percent of approvals will be utilised for capacity for new start-ups and capacity expansions. In supporting companies navigate the challenging economic conditions, 13% of funding approved went to companies experiencing difficulties. As a result of the economic environment, total funding disbursed during the year decreased marginally to R11 billion from R11.4 billion in 2016, as clients delayed the implementation of investment plans due to the challenging economic environment.
62 | Aug-Sept ‘17 | www.beadsmag.co.za
