The Industrial Development Corporation releases its 2011 financial resultsAt a press conference to release the Industrial Development Corporation’s (IDC) financial results for the financial year ended March 2011CEO Geoffrey Qhena announced that the IDC recorded a profit of R2.7 billion.
This he said was “as a result of improved profitability from operations, performance of our equity accounted investments, containment of operating expenses and lower impairments.”
This profit came amidst a steady recovery of the South African economy from the recession. A decrease in sources of income from 2009 to 2011 is indicative of stress in many sectors of the economy explained Chief Financial Officer Gert Gouws at the media briefing.He stated that the modest increase of 3% in revenue was also indicative of this stress.
The IDC was established in 1940, as a national development finance institution set up to promote economic growth and industrial development.It is owned by the South African government under the supervision of the Economic Development ministry.
The IDC has approved funding of R8.4 billion in the financial year ending March 2011.“This is the highest level ever for South African-based investments.
“Funding approvals during the year under review are expected to create 19 650 full time jobs and save an additional 11 650, with a combined impact on employment of 31 300, up from 25 000 in 2010.
“An additional 8100 jobs are expected to be created through direct linkages to activities in the informal economy.” said Qhena.
“In the year under review, the IDC embarked on a more proactive approach to building industrial capacity development.
“Of the total new approvals, 97% were in the priority sectors as identified in the New Growth Path (NGP).
“These include manufacturing, mining value chain and infrastructure and agriculture.
“In an effort to ensure Provincial equity, 49% of approvals went to developments in provinces other than Gauteng, Western Cape and KwaZulu-Natal.
“IDC will make available R102 billion over the next 5 years for investment. To achieve this level of investment, the partnership of various stakeholders and social partners is key – these include businesses, co-funders, labour, government and civil society,” said Qhena.
Pictured at the podium is Neo Mokhesi, Marketing and Corporate Affairs.
Seated (l-r) Gert Gouws, Chief Financial Officer; Geoffrey Qhena, Chief Executive Officer and Shakeel Meer, Corporate Strategy