To be the primary driving force of commercially sustainable industrial development and innovation for the benefit of South Africa and the rest of Africa.
The Industrial Development Corporation is a national development finance institution whose primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens. The IDC achieves this by promoting entrepreneurship through the building of competitive industries and enterprises based on sound business principles.
The IDC’s strategy is focused on the need to maximise development impact through jobsrich industrialisation and ensuring the long-term sustainability of the Corporation by addressing specific issues related to financial capital, our human resources, stakeholders, the natural environment and increasing the efficient use of resources.
Strategy development in the IDC is an ongoing process with a formal annual review. These reviews take into account changes in the operating environment and are guided by robust discussions by the Board, executive management and other senior management of the IDC. Strategies targeting specific industries and functional areas are developed with inputs from experts in their respective fields throughout the Corporation.
In 2015, we embarked on a project to prioritise industries so as to ensure we increase our effectiveness and maximise our impact on the economy.
The priority industries were selected based on SA’s current and long-term growth potential, our ability to have a meaningful impact, and alignment to government priorities. Three value chains were identified where our proactive support could have the largest impact on direct and indirect job creation through increased competitiveness, developing downstream industries and higher levels of exports – especially into markets in the rest of Africa. In addition, we are assuming a greater role to proactively nurture and develop industries that might not currently play a significant part in the South African economy, but have the potential for growth in the future. In particular, new sectors that derive their strength from innovation, science and technology are important. Another priority area aims to address the negative impact that the infrastructure backlog has on the development of industry. We are targeting infrastructure projects that can unlock industrial development.
The project also identified opportunities to increase the IDC’s operational efficiencies and effectiveness.
The prioritisation component of the project resulted in a differentiated approach to developing industries. This approach is shown in the table overleaf and formed the basis for a restructuring of operations and a review and redesign of internal processes.