so Someone on here reckons the chairman is in SA meeting up with IDC! I wonder why!!!!!!!!
IDC more than doubles funding approvals and improves balance sheet
Compiled by Karl Gernetzky
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Minister of Trade and Industry Ebrahim Patel.
Picture: GCIS
- The IDC's revenue climbed almost 35% in its year to end-March as it benefited from its investments in the mining industry.
- Funding approvals jumped 146% to R16 billion, and disbursements 14% to R7.2 billion.
- But disbursements were below a R10 billion target for the year, and the IDC is now planning to ramp up support.
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State development financier the Industrial Development Corporation (IDC) more than doubled its funding approvals in its 2022 year and improved the health of its balance sheet, saying it plans to ramp up support for black-owned companies and disburse R107 billion over the next five years.
The IDC's strategic investments into the resources sector, currently enjoying a boom in commodity prices, helped with a 34.8% rise in revenue to R21.7 billion in the group's year to end-March, with operating profits jumping 81.3% to R5.77 billion.
The IDC's funding approvals jumped 146% to R16 billion and disbursements 14% to R7.2 billion, although the latter was less than a R10 billion target and it noted this "is still significantly below the levels required for the IDC to play a meaningful role to foster stronger economic growth and meet shareholder expectations." General reluctance by parties to take on debt due to an uncertain economy had played a role, it said.
"I am pleased to advise that by the end of the 2021/22 financial year, the IDC’s balance sheet and finances had improved significantly, with the asset base increasing by 20%, from R147.3 billion to R177.4 billion at group level, and a general improvement across several financial metrics, including improvements in the nonperforming loans ratio from 40.3% to 31.2%," Trade, Industry and Competition Minister Ebrahim Patel said in the results.
"In the review year, the IDC experienced some positive outcomes evidenced in its performance for the year as it and the economy started to recover from the Covid-19 pandemic. The IDC is beginning to rebuild its pipeline and increased commitments as a prelude to disbursement," he said.
The IDC said that in the backdrop of a challenging economic environment and SA's immense development needs, it plan to disburse R107 billion over the next five years, while over the three years to come, this should create or save 112 000 direct jobs.
