As the Industrial Development Corporation (IDC) celebrates 86 years of existence, Trade, Industry and Competition (dtic) Minister Parks Tau has lauded the role the institution has played in supporting the mandate of democratic South Africa.
“This role and responsibility is critical as we address challenges, which include slow growth, declining industrial capacity, dwindling investments in the economy's productive sectors, backlogs in infrastructure, and a persistent concentration of economic power that stifles competitiveness,” Tau said.
Speaking at the IDC offices in Johannesburg on Thursday, Tau said the IDC’s role is evolving from being a traditional direct lender, towards becoming a platform for industrial ecosystem development, mobilising capital, partners and capability to unlock high-impact sectors, and rebuilding South Africa’s industrial base.
“Through the IDC, we partner with countries like Spain, China, Saudi Arabia, Europe and African countries to create financing instruments and blended financing mechanism to leverage resources and maintain a development finance path,” Tau said.
He said the partnership-centred model reflects the scale of South Africa’s industrial challenge and positions the IDC as a primary financing partner for structural reforms in network industries.
“This developmental and transformational path requires an appropriate governance structure. It is for this reason we have appointed a capable board, comprising experienced professionals drawn from the legal, finance, energy, mining and engineering sectors.
“Rest assured that where there are weaknesses in responsiveness, communication, complaints handling or execution, those weaknesses must be addressed. We were part of the engagement with Parliament, and we had an engagement with NAFCOC [National African Federated Chamber of Commerce and Industry].
“This is why the IDC is not only reaffirming its mandate today, but it is also strengthening how it responds to ongoing industry concerns,” the Minister said.
Tau used the occasion to announce the members of the IDC board, which is led by Gloria Serobe.
The members are: Ms Busi Mabuza, Advocate Thandi Orleyn, Mr Brian Dames, Ms Tryphosa Ramano, Mr Andre Kriel, Mr Reon Barnard, Ms Tanya Reeva Cohen, Ms Ayanda Dlodlo, Dr Tebogo Makube and Dr Keitumetse Mothibedi.
Tau explained that the board has a responsibility to address the negative and real challenges experiences by black entrepreneurs.
“As we continue to celebrate our freedom and recognise the important contribution made by our labour movement, the IDC's strategic focus is rightly placed on supporting and creating future-facing, job-rich value chains, including critical minerals, green industries and digital infrastructure.
“Equally important is the corporation’s emphasis on partnerships, leveraging blended finance and co-investment with the private sector to amplify development impact and crowd in capital.
“The world economy is changing. Countries are moving to secure supply chains and are investing in strategic sectors, building technological capability to advance and defend industrial competitiveness. South Africa cannot stand still in this environment. Therefore, the IDC’s strategy responds to shifting dynamics in the global economic landscape,” Tau said.
The commemoration of the IDC's 86 years of existence takes place as the country observes Freedom Month, which marks the country’s transition from the apartheid regime to a free, democratic country. It is in remembrance of the first democratic elections on 27 April 1994.
Ensuring good governance
IDC chair Serobe said the board is key to guiding strategy renewal, strengthening operational discipline, and ensuring that concerns and complaints are handled credibly and fairly.
“The IDC remains a strategic institution for our country. Its mandate is developmental, to advance industrialisation, jobs and transformation, and it must be sustained through sound governance, risk discipline and financial stewardship.
“The board’s responsibility is to protect both developmental ambition and the institutional sustainability that make it possible."
Serobe assured that the IDC is not without oversight or direction.
“It is being governed, challenged and strengthened so it can remain developmental, accountable and sustainable.” – SAnews.gov.za
