Industrial Development Corporation (IDC)
IDC a state-owned national development finance institution, madated by the Departement of Trade and Industry (DTI) and is financially autonomous since 1954. IDC is the fourth public company in terms of assets behind Eskom, Transet and Telkom and ahead of DBSA (Development Bank of Southern Africa).
IDC’s Mandate
IDC's main objectives are:
- To support the development of the South African industrial sector
- To promote entrepreneurship by implementing development projects
- To develop Small and Medium Enterprises (SMEs)
- To assist the new entrepreneurs during their entry on the market ensuring they adhere to the principles of Broad Based Black Economic Empowerment (BB-BEE), which role is to support the economic integration of PHD[1].
- To contribute to the regional industrialization of Africa, promoting sustainable growth in South Africa and in the region.
IDC’s activity
In contrast to the DBSA, IDC is primarily an investment company (rands 53 billion in 2009 (€ 4.6 billion) or 85% of its activity) prior to a credit company (8.8 billion rand (€ 717 million), or 15% of its activity). IDC finances various economic sectors such as agribusiness, mining, forestry, textiles, public-private partnerships, infrastructures, tourism ... IDC also provides advisory services and technical support to projects. Through its activities, IDC has permitted to create and save 24,200 jobs in South Africa and 5000 in the rest of the continent.
IDC and AFD
The AFD provided 5 lines of credit to IDC for financing SMEs and more especially black SMEs on the 2003-2009 period. The total amount of exposure is 49.3 million Euros (30 million for AFD and 19.3 million for Proparco).
These funds are intended to support the economic activities of HDPs and thus to reinforce the global strategy of the AFD in South Africa, which aims to support public policies protecting these people.