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CONTENT PAGE
Table of Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc520623605 h 2BACKGROUND OF INDUSTRIAL DEVELOPMENT CORPORATION PAGEREF _Toc520623606 h 3The role of industrial development corporate PAGEREF _Toc520623607 h 4Types of funding that are available at Industrial development corporate PAGEREF _Toc520623608 h 4Development funds PAGEREF _Toc520623609 h 4Agro-processing competitiveness fund PAGEREF _Toc520623610 h 4Gro-E scheme PAGEREF _Toc520623611 h 5Product process development scheme (PPD) PAGEREF _Toc520623612 h 5Risk capital facility programme PAGEREF _Toc520623613 h 5Transformation and entrepreneurship scheme PAGEREF _Toc520623614 h 5Women entrepreneurial fund PAGEREF _Toc520623615 h 5Distressed fund PAGEREF _Toc520623616 h 5The manufacturing competitiveness enhancement programme (MCEP) PAGEREF _Toc520623617 h 6IMPACT OF INDUSTRIAL DEVELOPMENT CORPORATION ON THE ECONOMY OF BOTH LOCAL AND INTERNANTIONAL PAGEREF _Toc520623618 h 6INDUSRTIAL DEVELOPMENT CORPORATION REGIONAL EQUITY PAGEREF _Toc520623619 h 7BLACK INDUSTRIALISTS PAGEREF _Toc520623620 h 8YOUTH ENTREPRENUERS PAGEREF _Toc520623621 h 9WOMEN EMPOWERMENT PAGEREF _Toc520623622 h 9COMMUNITY EMPOWERMENT AND SOCIO-ECONOMIC DEVELOPMENT PAGEREF _Toc520623623 h 9CORPORATE SOCIAL INVESTMENT PAGEREF _Toc520623624 h 10ENVIRONMENTAL SUSTAINABLE PAGEREF _Toc520623625 h 11CONCLUSION PAGEREF _Toc520623626 h 12REFERENCES PAGEREF _Toc520623627 h 13
IntroductionIndustrial development corporate (IDC) it was established in 1940. It is the national development finance institution that is being set up to promote economic growth and industrial development. Industrial development corporate it is owned by South African government. To contribute to the creation sustainable economic growth in South Africa is one of the industrial development corporation’s mission and to promote entrepreneurs by creating a competitive industries and enterprises.
The IDC have the vision of being the primary source of commercially sustainable industrial development to benefit South African but not only South Africa but the rest of Africa. Everything that IDC does it is directed or guided by their values which are Passion, Partnership and Professionalism.

BACKGROUND OF INDUSTRIAL DEVELOPMENT CORPORATIONIndustrial development corporation (IDC) was mandate to develop domestic industrial capacity, on specific manufactured good, to mitigate the disruption of trade between Europe and South Africa during the Second World War. IDC has contributed to the implementation of South Africa’s industrial policy for many years, the petro-chemicals and minerals where among those industries. It has also influenced the establishment of industries in fabricated metal, agriculture and clothing.

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During the 1990, the IDC expanded to include investment in the rest of Africa. The first investor was the Mosel aluminium smelter in Mozambique. The current investors of IDC in Africa are the mining, agriculture, manufacturing tourism and telecommunications. The funding of IDC is generated through income from loan and equity investments and also borrowings from commercial banks. The IDC together with the government their priority is to remain committed to developing the country’s industry capacity and also playing a big role in job creation through industrialisation.

The role of industrial development corporateThe industrial development corporate is designed to promote economic and industrial development IDC has a goal of providing finance for industrial project and promoting partnership between industries that are in South Africa as well as across its borders.

Project which are financed and facilitated include those who have high-impact and labour intensive, leading the creation and innovation of new industries. Using different expertise to drive growth in priority sectors, and to take a high-risk funding projects. The IDC support the B-BBEEE and it is actively involved in boosting and promoting black owned and managed business and those with employment equity by developing skills of black employees and business owners. It supports government projects on local, regional, provincial and national levels and it encourages its stakeholders to comply with B-BBEE policies.
The IDC poised to play a stronger role in helping government realign and expand the South African economy. It always adapts to its role to sustain economic as priorities which involves three frameworks guide approach. It also offers funding across in the rest of Africa to support the growth of South Africa industrial capacity and in doing so it pays a major role in job creation. Aim to eliminate poverty and reduce inequality by 2030. It identifies a desire destination and identifies the role of different sectors of society that need funds.

Types of funding that are available at Industrial development corporate
Development funds
Agro-processing competitiveness fund
Gro-E scheme
Product process development scheme(PPD)
Risk capital facility programme
Transformation and entrepreneurship scheme
Women entrepreneurial fund
Distressed fund
The manufacturing competitiveness enhancement programme(MCEP)
Development fundsIDC funding are aimed at supporting at projects that will have high long-term impact on the economy, it also aims to bring projects out of the informal sector into the economic mainstream.

Agro-processing competitiveness fundThis kind of fund provide support and facilities increased competitiveness, business growth, job creation and development in the agro processing and beverages industries.

Gro-E schemeThrough the Gro- E scheme the IDC has invested an amount of 10 million that will offer financial support to start-up businesses that includes funding for buildings, equipment and working capital. The scheme it works on funding businesses with a minimum of R 1 million to a maximum of 1billion per project with the interest of prime which must be less than 3% for loans and the real after Tax Internal Rate of Return of 5% for equity financing.

Product process development scheme (PPD)This scheme is intended to promote innovation and technology development through financial assistance enabling the development of new products or process. PPD is proving financial assistance to micro and small enterprises, but there is certain rule which is the total assets of the business must be below R 5 million, annual turnover must be less than R 13 million and the entity employs not more than 50 employees.

Risk capital facility programmeThis fund provides risk finance to companies that are owned by previously disadvantaged individuals that show substantial job creation potential. The funding can be provided through three channels which are: Direct channel operating alongside, niche fund channel and third part channel.

Transformation and entrepreneurship schemeThe transformation and entrepreneurship scheme has been set up by the IDC to finance marginalised groups of South Africans such as women and the people who have disability. This fund helps individual to gain access to finance that can develop or grow their businesses either as the start-up or expansion. It also provides mentorship and non-financial support such as business panning training and mentorship.

Women entrepreneurial fundIt focuses mainly on the women, this fund is aimed to improving entrepreneurial participation by women. It only gives funds to business which have a minimum of 50% shareholding by women and where the women are part of the operations and management. Funds can either be needed for start-up or expansion. The total asset base of the business must be less than R80 million and maximum provision of finance of R 30 million per transaction in order to qualify for the fund.

Distressed fundIt assists small business with the fund which have been negatively affected by global recession. This fund helps existing business by building capacity and creating jobs as well as working capital. The objectives of tis fund is to keep business open, stem job losses and maintain a productive economy.

The manufacturing competitiveness enhancement programme (MCEP)This is aimed at existing manufacturers that designed to promote competitiveness in the industry and ensuring job retention. It includes industrial financial loan facilities and production incentive grants.

The industrial development corporation has been approving each and every year according to their financial reports. The youth are facing challenges of having undeveloped balance sheets, limited skills and not having access to the information which they need. The IDC introduced a portal to help the youth on challenges that they may face, opportunities and other critical issues that affecting them. In this portal they can ask for an advice on how they can start a business for example. This portal the youth can utilise it for free. They can also use this platform of portal to test whether their ideas of starting their business are feasible or not.
IMPACT OF INDUSTRIAL DEVELOPMENT CORPORATION ON THE ECONOMY OF BOTH LOCAL AND INTERNANTIONALTheir main portfolio focus is on the serious traditional sectors which are mining, chemical and textiles, and also the new sectors such as green energy and film. This portfolio has a strong submission especial to the tradable goods sectors, to those sectors that are part of the economy where growth is a purpose of exports. Even where the market is in a sector that is exposed to import competition. The industrial development corporation (IDC) and the economy as the whole they are facing the challenge of the year of growing of head wings that they had to direct.

The IDC have impact on the financial returns companies in which they invested in, and also it has placed other companies in the portfolio under pressure. Kumba and Sasol are one of the examples of the companies, they had dropped against the recent trend-line. The investment in Scaw metals and Foskor they both been challenging for them each and every year. In the past years before the industrial development corporation was introduced many companies held back on the new investment because of the market uncertainty. The IDC has approved billions of the projects, and donated to the project partners for investment that has already been approved. An amount of R5, 2 million was meant for the manufacturing sector, providing investment boots but also showing assurance in the future of manufacturing of South Africa.

The investment approvals of gas, manufacturing and manganese mining has grown by 51%. During the global financial crisis, the industrial development corporation supported many companies and save them from distress. They provided a range of support from funding new companies that facing a sharp drop in funding from their traditional sources. The industrial development corporation in that period it provided for about 6 billion in support to weak companies. It became evident of wisdom as most of the companies recovered well, by not only pay back IDC but they expanded their companies and created new jobs. There are few good examples of the companies that were provided support by IDC which are: Bell equipment, a yellow-metals manufacturer and local factory of Ford. Today these companies are the main exporters of stock and every Ford Bakkies are sold to other African countries not only in South Africa. Weaker global economic growth has affected domestic growth, but the bulk of IDC funding assisting industrial expansion and growth with 52% of funding allocated to green fields investment and for about 40% allocated for expansions in existing enterprises. The fasted growing markets for manufactured exports in South Africa was to the rest of the region. Companies who are In the IDC benefitted from this and it helped to ease weaker demand from other part of the world. The IDC has invested to support African growth, planting the ground that can provide for development and future growth.
In the past years, IDC approved investment in other 10 countries. These investments are based on infrastructure, tourism and mining. Since government has increased tariffs on three steel products, IDC evaluated the case for further product to be provided with tariff support. As they send a signal that they will do what is needed to assist companies but also sending message to the companies that need to invest in their competitiveness instead of relying on trade measures. IDC stepped in at Highveld Steel when the company was threatened with closure and provided a capability to give the company the space to find new technology and equity partner. The Highveld Steel has progressed constructively. The tariffs increase and provision of industrial funding, they show the effort that the IDC has placed in these companies.

The IDC investment funding in the clothing and footwear industry has been matched with a government-funding partnership to improve the industry competitiveness, through the new equipment at local factories. This has led to about 6 900 jobs that were created in the factories that are part of the competitiveness programmes. IDC played an important role in one part of the National Infrastructure Plan, through supporting for the renewable energy build-programme. When IDC form part of this programme there was high level of uncertainty by traditional funders who had a fear that government would not be able to pull of its renewable energy-programme. It also invested in wind, solar and hydro projects, and also helped to create a market. IDC has supported many project to localize component supply. It has provided loan for the company that will manufacture and supply the complete car body, and also it supported black industrialist to obtain share in large bus making company that manufacture for the bus quick transport system for the infrastructure programme. These programme are mainly focuses on local, they can help to provide new industrial capacity and increase the jobs in manufacturing. The empowerment remains the important thing to the IDC but not only for reasons of historical amends but as fundamental requirement for sustainable growth.

INDUSRTIAL DEVELOPMENT CORPORATION REGIONAL EQUITYThe promotion of the regional equity is a key strategy objective of the corporation and the number of involvements, it has been intended to assist development in less developed rural areas. It has the network of regional and settlement offices across the country, providing possible and existing clients with the access to staff and service in those rural areas. These efforts at reaching out to remote communities are strengthened by an arrangement of sharing an office. In the line of the economy activity, the bulk of gross transactions continues to arise from the most industrialised provinces being Gauteng, Western Cape, and Kwazulu-Natal with 29% of transactions being concluded in other six provinces.

Provinces that have the most industrialised in the bulk of gross transactions. (Gauteng 34%, Western Cape 23% and Kwazulu-Natal 14%)
The rural areas development remains the critical challenge and the IDC has recognise the need to take part in the rural areas economy into the mainstream economy. Industrial Development Corporation have been proactively identifying opportunities that have the possible impact considerably on rural communities, while trying to avoid copying the activities and instructions of other players that are present in these communities. IDC funded the activities in rural areas for about billion activities. The corporation funding approvals went to fund small and medium enterprises (SMEs). The interest of IDC is to ensure the participation of SMEs in the critical sectors of the economy which have been controlled by very large players. The work of its subsidiary, Sefa and approvals in this areas increased in billions in 98 SME transactions.
BLACK INDUSTRIALISTSThe black industrialists programme is proposed to promote the participation of black entrepreneurs in key sectors of the economy. The IDC supports the black industrialist by providing them with funds at a good loaning rates. They have adjusted their pricing model to make things easier for them to obtain a greater pricing benefit. Special pricing has been made available and it includes a discount of 150 basis points based on IDC pricing method. An additional discount has also been made for meeting other developmental objectives such as job creation. Other key developmental outcomes such as the impact in under developed regions also they contribute towards discounted pricing. To financial support the IDC provide businesses support with several practical initiatives that aimed at either identifying new or further developing already active black industrialists.

YOUTH ENTREPRENUERSYouth which are unemployed is one of the major challenges facing the country. The IDC has identified the range of this challenge and has proactively been promoting creativities that pursue the youth to participate in job creation initiatives and entrepreneurship. Some other challenge that the IDC relating to youth funding include undeveloped balance sheets, limited capacity and opportunities. In recognising the problem to help the youth to overcome these challenges and grow their business, IDC has appointed youth specialist to motivate and develop the youth to focus. This has resulted in changing of Gro-E Youth Scheme, the introduction of youth pipeline development programme and business support programme has increase. Adjustment were made by the IDC systems, processes and products that enable youth enterprise development.

WOMEN EMPOWERMENTThe empowerment of the women is very important to the IDC. The efforts to provide support to female entrepreneurs that has resulted into an important improvement. The IDC has significantly increased the level of funding for women –empowered deals. That has indicated an increasing shift to women in large businesses. Under the review of the year, the IDC introduced a specific target for the funding of women, they aimed at increasing the funding support for women-empowerment enterprises.

COMMUNITY EMPOWERMENT AND SOCIO-ECONOMIC DEVELOPMENTThe corporation remains actively involved in number of regional development activities that include assisting on local authorities and provincial governments in formulating their development strategies, as well as participating straight in numerous spatial development initiatives over the years through the IDC funding for the establishment and running of development agencies. They crowded 32 agencies mainly in rural areas and township. Each and every rand that is provided to an agency by the IDC have a nine-fold influence effect. The programme has ended with resources allocated to other spatial involvements. Some commitments to those agencies still exists, in the last financial year it has approved three transactions.
Social missions which through the lines of businesses, challenge social environmental problems. It has improved the lives of often the most helpless people and communities through the IDC programme which is the social enterprises fund. IDC has supported various social enterprises across the country. It has a partner in this programme the Government of Flanders, which has provided funds for more than millions in three years to assist the growth of sectors. During the social enterprises, a youth owned waste collection and recycling business and three small farmer development enterprises were also funded. The spatial intervention fund which aims to address the socio-economy and developmental needs of targeted, largely downgraded areas through public, private and community partnership.
It has produced many innovative and impactful initiatives, there are about four projects which were funded to the value of R18 billion which are: a small farmer support programme, an inclusive business with supplier’s linkages into major retailers, an employee-ownership initiatives and a township youth support programme. In regarding the workers and community trusts, the IDC has funded for about 22 local community trusts and communities are set to receive the dividends over a period of 20 years. The number of workers and community trusts registered has slowly increased as the programme has been moved out.

CORPORATE SOCIAL INVESTMENT IDC CSI PERCENTAGE SPEND PER FOCUS AREA
The corporate CSI programme of the IDC supports initiatives with the global of contributing towards the improvement of socio-economic conditions of the people who come from disadvantaged communities, focusing on education and entrepreneurship. During 2016 the initiatives were applied according to focus areas as indicated in the graph. Education and training are the essential of the IDCs programme. Support in this area is affiliated to government’s priorities as outlined in National Development Plan, through these investments the IDC encourages the government ethics that the education and training are critical for South African to meet its long-term socio economic development goals. It terms of sustainable livelihoods the CSI programme also supports micro enterprises that seek to improve poverty, create jobs and provide youth with suitable skills to increase their chances of employment. This complement the IDC development mandate.
Since the IDC CSI programme education is at the heart it has allocated the largest amount portion of the budget. This sector is a central to efforts to improve skills development for the economy. Government has identified TVET colleges as preferred training providers for scarce skills, training programme which are artisans and in engineering sciences.

ENVIRONMENTAL SUSTAINABLE
The IDC has established an environmental and social framework which guarantees reliable and organised consideration of environmental and social components for all project investment. The IDC is committed to supporting projects that are environmentally and socially sustainable. They conduct environmental and social due to carefulness of new clients and monitor high-risk clients. During the monitoring of the client the IDC were able to average and improve the client environmental and social risk rating (ESRR), from poor to good. The IDC tries to ensure that it always operates in an environmentally and socially acceptable manner, as the responsible organisation when carrying out its businesses.

CONCLUSIONIn conclusion the industrial development corporation programmes has done so much that the economics of the country has been improving. The IDC supports businesses not only local but also international, it also trying by all means to provide training to the communities so that they can be able to be employed. There are various programmes that IDC does to name the few is the education and training they have been spending more of their funds of the education.

The IDC supports the entrepreneur who wishes to accomplish their dreams, but they do not only support entrepreneurs they also offering the funds and guide them on how to start a business. This programme has supported many entrepreneurs and it has funded businesses who were facing the challenges to a point that they may close the business. If the IDC can continue doing what it does the South African entrepreneur can benefit more which means that many people would be interested to start up their businesses because of the support system that the IDC gives to the entrepreneurs. The IDC is the responsible organisation when carrying out the business.

CITATION goo16 l 1033 (Anon., 2016)References
BIBLIOGRAPHY Anon., 2016. google. Online Available at: http://nationalgovernment.co.zaAccessed 01 july 2018.

Anon., 2017. Online Available at: http://www.entrepreneurmag.co.za
Anon., 2017. Google. Online Available at: http://www.idc.co.za

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CONTENT PAGE Table of Contents TOC o "1-3" h z u Introduction PAGEREF _Toc520623605 h 2BACKGROUND OF INDUSTRIAL DEVELOPMENT CORPORATION PAGEREF _Toc520623606 h 3The role of industrial development corporate PAGEREF _Toc520623607 h 4Types of funding that are available at Industrial development corporate PAGEREF _Toc520623608 h 4Development funds PAGEREF _Toc520623609 h 4Agro-processing competitiveness fund PAGEREF _Toc520623610 h 4Gro-E scheme PAGEREF _Toc520623611 h 5Product process development scheme. (2019, May 05). Retrieved November 27, 2020, from https://midwestcri.org/content-page-table-of-contents-toc-o-1-3-h-z-u-introduction-pageref-_toc520623605-h-2background-of-industrial-development-corporation-pageref-_toc520623606-h-3the-role-of-industrial-development-corp/

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