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Investing in the economy

Strategic business units (SBUs)

The core developmental funding interventions of IDC are carried out by 13 SBUs, each focused towards the various sectors as identified in the NGP and IPAP.

During the year under review, we successfully restructured our SBUs and, where required, re-organised their areas of focus. This ensures better alignment with our industrial development mandate. The following structural changes were made:
  • SBUs renamed:
    • Techno Industries to Information and Communication Technologies (ICT)
    • Wood, Paper and Other to Forestry and Wood Products
    • Food, Beverage and Agro-Industries to Agro-Industries
  • SBUs dissolved:
    • Transport, Financial and Other Services
    • Public and Private Partnerships
    • Construction
    • Franchising
  • New SBU introduced:
    • Green Industries

The activities of the Public Private Partnerships SBU and some of the activities of the Transport, Financial and Other Services SBU were incorporated into the Strategic High Impact Projects (SHIP) SBU and we phased out our involvement in the Franchising and Construction sectors. The new Green Industries SBU was established to develop and fund projects related to green energy and the move towards a low-carbon econom

Our operational divisions and respective SBUs


Agro and New Industries

  Mining and Manufacturing
Industries
Services Industries
  • Agro-Industries
  • Green Industries
  • Strategic High Impact Projects
  • Venture Capital
 
  • Chemicals and Allied Industries
  • Forestry and Wood Products
  • Metals, Transportation and Machinery
  • Mining and Mineral Beneficiation
  • Textiles and Clothing
 
  • Information and Communication Technologies
  • Healthcare
  • Media and Motion Pictures
  • Tourism

    Agro-Industries SBU
 
 Performance 2012     2011    2010    
Total value of financing approved (Rm) 765*    937    770    
Total number of jobs expected to be created or saved 5 057      4 198    3 133    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 17%  20% 26%
* Approvals of R68 million utilising the Agro-Processing Competitiveness Fund are excluded.

Focus areas
Internationalisation – Globalising SA brands and incorporation of SA companies into global supply chains

Value addition – Horticultural and grain surplus value addition

Import replacement – Seed oils and oil cake; malt production

Emerging industries – Marine aquaculture

Rural/poor linkages – Rural agricultural linkage scheme; one-stop, agri-business support initiative

 

    Green Industries SBU
 Performance* 2012     
Total value of financing approved (Rm) 5 485     
Total number of jobs expected to be created or saved 2 689     
Impairments as % of outstanding book (at cost excluding undrawn commitments) 4% 
* The Green Industries SBU was established on 1 April 2011.

Focus areas
Non-fuel power generation – Wind, concentrated solar and photo-voltaic solar power generation

Energy efficiency – Heat, electricity and buildings; cleaner production/industrial processes

Fuel-based energy – Waste-to-energy; co-generation

Bio-fuels – Bio-ethanol

Emission and pollution mitigation – Waste management/recycling; clean stoves

Related services – Energy servicing companies (ESCOs)

 

    Strategic High Impact Projects (SHIP) SBU
 
 Performance* 2012     
Total value of financing approved (Rm) 1 561     
Total number of jobs expected to be created or saved 2 670     
Impairments as % of outstanding book (at cost excluding undrawn commitments) 5% 
* SHIP did not have an investment mandate prior to 2012.

Focus areas
Cross-sectoral/new sectors – Localisation project; bamboo; sisal; green transport; gypsum; battery; titanium; rolling stock; theme park

Industrial infrastructure – Power generation; toll roads in rest of Africa

High impact logistics – Railways; maritime


    Venture Capital SBU
 Performance 2012     2011    2010    
Total value of financing approved (Rm) 187     51    68    
Total number of jobs expected to be created or saved 697     267    104    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 35%  41% 40%

Focus areas
Globally unique technologies of South African origin in any industry or sector

 

    Chemicals and Allied Industries SBU
 
 Performance 2012      2011     2010    
Total value of financing approved (Rm) 714      541     1 555    
Total number of jobs expected to be created or saved 3 283      1 703     1 059    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 14%  20% 38%

Focus areas
Establish clusters of production for local beneficiation – Titanium, zirconium, hydrogen fluoride production, plastics, petro-chemicals

Address market imbalances – Glass, import substitution opportunities

Security of supply for key inputs into infrastructure, food and energy needs – Fertiliser and fertiliser inputs, gas, building products


    Forestry and Wood Products SBU
 Performance 2012      2011     2010   
Total value of financing approved (Rm) 363      273     279   
Total number of jobs expected to be created or saved 6 551      889     2 662   
Impairments as % of outstanding book (at cost excluding undrawn commitments) 33%  34% 35%

Focus areas
Forestry value chain – Forestry, sawmilling, pulp and paper, packaging, furniture and other value-added products

 

    Metal, Transport and Machinery Products SBU
 Performance 2012     2011    2010   
Total value of financing approved (Rm) 1 700      2 104    714   
Total number of jobs expected to be created or saved 6 861      6 050    2 690   
Impairments as % of outstanding book (at cost excluding undrawn commitments) 18%  23% 24%

Focus areas
Fabricated metal, capital and transport equipment – SOC capex programmes; tooling, die and mould industry; foundries; medium and heavy commercial vehicles (MHCV).

Automotive and MHCV – Assembly; EV; components; MHCV, buses and taxis

Components for green industries – Energy-saving technologies; wind; solar components

Advanced manufacturing – Aerospace

 

    Mining and Mineral Beneficiation SBU
 
 Performance 2012      2011    2010   
Total value of financing approved (Rm) 3 551      737    3 143   
Total number of jobs expected to be created or saved 12 110      3 613    8 744   
Impairments as % of outstanding book (at cost excluding undrawn commitments) 17%  14% 14%

Focus areas
Steel prices – Provide competitively priced steel

Early stage projects – Support to junior mining companies from project initiation to implementation

“New age” minerals – Rare earth elements

Rest of Africa – Development of mineral resources


    Textiles and Clothing SBU
 Performance 2012     2011    2010    
Total value of financing approved (Rm) 501     539    292    
Total number of jobs expected to be created or saved 2 420     10 158    2187    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 59%  44% 53%

Focus areas
Building a conducive environment – Leading role in development of national strategy including refinement of incentives for the sector

Competitive local/regional value chain – Regional projects; linkages between manufacturing and retail; value chain projects; wool and mohair cluster; leather and footwear cluster

Stabilise major investments in the portfolio

 

    Information and Communication Technologies (ICT) SBU
 
 Performance 2012      2011     2010    
Total value of financing approved (Rm) 532      410     183    
Total number of jobs expected to be created or saved 1766      2 131     3 000    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 30%  35% 45%

Focus areas
Telecommunication – Undersea; national backhaul; metro; last mile; focus on under-serviced areas and rest of Africa

Shared services – Value-added components of Business Process Outsourcing

Digital migration – Local manufacture of set-top boxes

e-waste – Recycling of electronic waste

Electronics – Niche low-volume electronic manufacture; demand-side management including smart meters

Information technology – Contract-based software and hardware

Electrical services – Contract based


   Healthcare SBU
 Performance 2012     2011     2010   
Total value of financing approved (Rm) 170     264     178   
Total number of jobs expected to be created or saved 1 626     1 606     (160)*   
Impairments as % of outstanding book (at cost excluding undrawn commitments) 5%  6% 9%
* Negative job numbers reflect the impact of cancellations of previous year’s approvals.

Focus areas
Pharmaceuticals – Anti-retrovirals (ARVs) pharmaceuticals; anti-diabetic extract; codeine from medicinal poppies

Malaria – Artemisinin Combination Therapy (ACT) extract and pharmaceuticals, impregnated bed nets; sterile insect technology

Medical devices – Surgical instruments; HIV test kits, etc.

Hospitals – Hospital PPPs; private wards in public hospitals; private hospitals (acute and sub-acute); day clinics; PHC centres focusing on maternal health

 

    Media and Motion Pictures SBU
 Performance 2012     2011     2010     
Total value of financing approved (Rm) 429     164     296     
Total number of jobs expected to be created or saved 1 400     898     (141)*     
Impairments as % of outstanding book (at cost excluding undrawn commitments) 34%  26% 37% 
* Negative job numbers reflect the impact of cancellations of previous year’s approvals.

Focus areas
Motion picture value chain – Film production (low, medium and high budget); production facilities (Johannesburg studios, post-production); audience development (digital cinema, rural and township cinemas, channel aggregation for export); animation hub

Music value chain – Production and distribution of SA music

Broadcasting – Pan African television broadcasters (expansion of SA broadcasters); regional and community radio stations; community television stations

 

    Tourism SBU
 
 Performance 2012      2011     2010    
Total value of financing approved (Rm) 233      134     324    
Total number of jobs expected to be created or saved 447      276     489    
Impairments as % of outstanding book (at cost excluding undrawn commitments) 12%  9% 5%

Focus areas
Properties in distress and consolidation of the industry – Assist select establishments until economic conditions improve

Underdeveloped tourism nodes in SA – Backpackers; adventure and sports tourism; natural attractions; heritage attractions; avitourism; beach tourism; arts and crafts; enabling tools, e.g. tourist routes, transportation

Rest of Africa – Refurbishment of existing properties; new properties; business hotels