IDC - Industrial Development Corporation
IDC earmarks R25bn for green industries.
Government has identified that green industries, a key focus area of the New Growth Path, will play a significant role in developing the economy. Green projects not only help South Africa to reduce its carbon footprint, but also help to create jobs and bring economic benefit to rural areas.
According to the Green Jobs Report released by the IDC, TIPS and the DBSA, the greening of the South African economy has the potential to create more than 460 000 new direct jobs by 2025. Renewable energy projects such as wind farms, waste-to-energy power, as well as biofuels production, provide potential for rural upliftment. Many of these are Greenfield projects that encourage BBBEE and local partnerships.
Cabinet has approved an integrated resource plan for electricity where 42% of new generation capacity, or more than 17 000MW, to be added over the coming two decades, will be derived from renewable sources. The National Energy Regulator of South Africa (NERSA)
has confirmed that the role of renewable energy in the country's generation mix would be increased.
The IDC, commercial banks and other development institutions have a critical role to play in developing and investing in green industries by providing funding in this fledgling sector.
R25 billion has been earmarked by the IDC to invest in green industries over the next five years, focused on the development of five key green areas: renewable energy, energy efficiency, emission and pollution mitigation, fuel-based power such as waste-to-energy and cogeneration, as well as bio-fuels.
The IDC and the German Development Bank (Kfw) have also made a R500 million Green Energy Efficiency Fund (GEEF) available, aimed at promoting investments in both energy efficiency and renewable energy in South Africa.
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| Sandton |
| Johannesburg |
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IDC won the following awards at the 2007 BusinessMap Business Report BEE Awards:
* The IDC was once again acknowledged as the best DFI in the Empowerment arena.
* Three IDC clients were finalists for the category Top Black Business,
Ntuso Holdings and Sobengwe achieved joint place and
Razco Plastics was the winner in this category.
Congratulations to Wood and Paper and Chemtex SBUs.
In the category of Top BEE Deal the Ayavuna and Imbewu deals with Tongaat-Hulett and Hulamin was a finalist.
The IDC has significant shareholding in Hulamin.
The IDC won the award for Development Financier of the year for the 4th year running.
This year the award was not based on number of value of deals but rather based on evaluating selected projects on the seven criteria of the balanced scorecard of BEE Codes of Good Practice, which is in line with IDC strategic direction.
Our approach to Corporate Social Investment (CSI) has been guided by the Urban Renewal Programme (URP) and the Integrated Rural Development Programme (IRDP) announced by past President, Thabo Mbeki (State of the Nation Address 2001).
The programmes were established to alleviate poverty in acutely underdeveloped regions.
Our CSI programme focuses on assisting special need areas within these regions. It is also involved with projects that support women and people with disabilities.
When we become involved in a project, we adopt a holistic view, taking a 360-degree approach by offering additional help in the form of on-the job-training, advice concerning business organisation and marketing as well as follow-on support.
CSI Investments focus on:
* Making a fundamental contribution to rural development
* Helping individual projects develop into business cooperatives.
* Using our internal resources to supervise projects that we fund.
* Assisting projects that have the potential to develop and qualify for IDC business funding
CSI Investment Initiatives focused on:
Community development programmes organised by local organisations, NGOs and non-profit groups.
Update
We are currently supporting 25 poverty alleviation projects. We have established strategic partnerships with all these projects in order to heighten their impact and leverage the necessary funding. One such project is the Nguni Cattle Project.
Nguni Cattle Project
This involves the introduction of Nguni cattle to economically depressed areas. Initiated in the Eastern Cape with the University of Fort Hare, the programme has now expanded to Limpopo and North West Provinces under the custodianship of the provincial government and in collaboration with local universities. To date, 30 communities have received cattle for breeding and eventual commercialisation.