Pretoria - The Industrial Developmental Corporation (IDC) has approved funding of R8.4 billion in the financial year ending March 2011, which will go a long way towards job creation.
"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 8 100 jobs are expected to be created through direct linkages to activities in the informal economy," said the IDC in its financial results for the year ended 31 March 2011.
The IDC posted a R2.7 billion profit due to improved profitability from operations, performance of equity accounted investments, containment of operating expenses and lower impairments.
The South African economy recovered steadily from the recent recession, with the pace of growth gaining momentum towards the latter part of 2010 and firming in the opening quarter of 2011.
"We have retained our focus both on preserving and growing high impact manufacturing capacity and have succeeded in improving our impact on job creation," IDC CEO, Geoffrey Qhena, said on Thursday.
Of the total amount of funding approvals, 97 percent were in the priority sectors identified in the New Growth Path (NGP), including manufacturing, infrastructure, agriculture and the mining value chain; 49 percent of funding approvals went to developments in provinces other than Gauteng, Western Cape and KwaZulu-Natal in order to ensure provincial equity.
"The IDC continues to leverage its portfolio to improve development outcomes. This includes creating ring-fenced schemes to subsidise industry development, such as the R10-billion Gro-e-Scheme with concessionary terms aimed at job creation, which was launched in February 2011," said Qhena.
The corporation has also approved R4.1 billion of the R6 billion allocated to assist companies in distress. Over 17 000 jobs were created and saved as a result of the R2 billion UIF scheme launched in May last year, R1.5 billion of which has already been approved.
The corporation has also approved R4.1 billion of the R6 billion allocated to assist companies in distress.
"IDC will make available R102 billion over the next five 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.
In his budged vote in April, Economic Development Minister Ebrahim Patel said over the next five years, green industries will be allocated R22.4 billion, while mining and beneficiation will be allocated R22.1 billion. Manufacturing will receive R20.8 billion while the agriculture value chain will receive R7.7 billion.
