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Industrial Development Corporation

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Title: Industrial Development Corporation


1
Industrial Development Corporation
30 June 2011
2
Financial Results
3
Abridged Statements of Comprehensive Income
Rm Mini-group 2010 Actual Mini-group 2011 Actual
Revenue 3 785 3 900
Foskor 2011 Actual
4 611
3 078
28
1 505
90
1 058
537
(5)
532
3
535
158
377
88
465
Other 2011 Actual
(38)
-
(50)
12
-
(391)
402
(313)
89
-
89
-
89
799
888
Other subsidiaries and associates 2011 Actual
492
354
54
84
42
235
(109)
-
(109)
647
538
(37)
575
(559)
16
Group 2011 Actual
8 965
3 444
346
5 175
131
3 057
2 249
36
2 285
633
2 918
206
2 712
10 886
13 598
Cost of sales 12
Financing costs 476 314
Gross profit 3 309 3 574
Other income
Operating expenses 2 299 2 155
Net income before capital gains 1 010 1 419
Net capital gains 573 354
Net operating income 1 583 1 773
Share of profit/(loss) of equity-accounted investments 80 (17)
Profit before tax 1 663 1 756
Taxation (303) 85
Profit for the year 1 966 1 671
Other comprehensive income 10 769 10 558
Total comprehensive income 12 735 12 229
4
Abridged Group Statements of Comprehensive
Incomefor the Year Ended 31 March
Rm Group 2011 Actual Group 2010 Actual Change
Revenue 8 965 7 785 15
Cost of sales 3 444 2 565 34
Financing costs 346 528 (34)
Gross profit 5 175 4 692 10
Other income 131 159 (18)
Operating expenses 3 057 3 416 (11)
Net income before capital gains 2 249 1 435 57
Net capital gains 36 573 (94)
Net operating income after capital gains 2 285 2 008 14
Share of profit/(loss) of equity-accounted investments 633 40 1 483
Profit before tax 2 918 2 048 42
Taxation 206 (181) NMF
Profit for the year 2 712 2 229 22
Other comprehensive income 10 886 12 406 (12)
Total comprehensive income 13 598 14 635 (7)
5
Sources of Income
Sources of Income
6
Operating Expenses
Rm 2011 Actual 2010 Actual Change
Operating expenses 2 155 2 299 (6)
- Administration expenses 968 915 6
- Project costs 14 182 (92)
- Impairments and write offs 1 173 1 202 (2)
(a) General Book 1 024 1 157 (12)
(b) Projects 149 45 231
7
Impairments as a of Total Financing at Cost
Impairments as a of Total Financing at Cost
8
Impairments as a of Total Financing at Market
Value
Impairments as a of Total Financing at Market
Value
9
Abridged Statements of Financial Positionas at
31 March 2011
Rm Mini-group Mini-group
Rm 2010 2011
Rm Actual Actual
Assets    
Cash and cash equivalents 2 293 5 329
Loans and advances 9 769 11 613
Investments 74 356 85 893
PEE and inventories 179 161
Other assets 597 535
Total assets 87 194 103 531
Foskor
2011
Actual
 
404
 
341
4 414
619
5 778
 
141
3 806
3 947

 
129
601
1 101
1 831
5 778
Other
2011
Actual
 
95
440
(4 263)
1 263
(38)
(2 503)
 
(141)
340
199
342
 
(801)
(1 824)
(419)
(3 044)
(2 503)
Group
2011
Actual
 
5 828
12 053
81 971
5 838
1 116
106 806
 
1 393
91 333
92 726
342
 
6 677
5 011
2 050
13 738
106 806
Equity    
Share capital 1 393 1 393
Reserves 74 502 87 187
Total equity attributable to holders of parent 75 895 88 580
Minority shareholders interest    
Liabilities    
Loans 4 236 7 349
Deferred taxation liability 6 388 6 234
Creditors and provisions 675 1 368
Total liabilities 11 299 14 951
Total equity and liabilities 87 194 103 531
10
Abridged Statements of Financial Positionas at
31 March 2011
Rm Group Group Change
Rm 2011 2010 Change
Rm Actual Actual Change
Assets      
Cash and cash equivalents 5 828 2 866 103
Loans and advances 12 053 10 374 16
Investments 81 971 68 891 19
PEE and inventories 5 838 5 012 16
Other assets 1 116 1 488 (25)
Total assets 106 806 88 631 21
Equity      
Share capital 1 393 1 393 -
Reserves 91 333 77 796 17
Total equity attributable to holders of parent 92 726 79 189 17
Non-controlling interest 342 366 (7)
Liabilities      
Loans 6 677 3 527 89
Deferred taxation liability 5 011 3 795 32
Creditors and provisions 2 050 1 754 17
Total liabilities 13 738 9 076 51
Total equity and liabilities 106 806 88 631 21
11
Balance Sheet Items for the Last 5 years
Balance Sheet Items for the Last 5 years
12
Borrowings
Borrowings
13
Listed Investments Trend Analysis
Listed Investments Trend Analysis
14
IDC Group Strengthened Financial Base
140
100
90
120
80
100
70
57.0
60
80
45.6
48.2
50
R billion
33.1
60
40
29.2
23.6
30
40
31
31.6
15.4
20
13.4
11.3
35.7
9.2
33.6
10.4
20
22.9
27.6
10
15.4
14.3
12.8
12.8
10.5
13.2
0
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Fair value revaluation
Excl. fair value revaluation
15
Highlights
  • Net funding approvals for South African based
    development of R8.4 billion at the highest levels
    ever
  • Impact on South African job creation improved
    with approvals during the year expected to create
    19 650 full time jobs and save an additional 11
    650 with a combined impact on employment of
    31 300
  • An additional 8 100 jobs expected to be created
    through direct linkages to activities in the
    informal economy.
  • Alignment of operations with New Growth Path
    (NGP) and establishment of a Green-Industries
    business unit
  • 97 of new investment approvals in the priority
    sectors as identified in the NGP.
  • Success with sourcing of alternative funding
  • R1.5 billion approved to companies through the
    UIF bond, creating and saving more than 17 000
    jobs
  • Low cost funding secured from an international
    lender for the promotion of energy efficiency
    initiatives.
  • Successful interventions in manufacturing to
    sustain and increase job creation
  • R646 million approved for businesses in the
    clothing and textiles industry to curb job losses
    and increase competitiveness with an additional
    R648 million approved for schemes managed on
    behalf of the dti targeting the industry.
  • R1.7 billion approved for investments in the
    motor vehicle industry covering both assembly as
    well as component manufacturers, some of which
    were in distress.

Value of Funding Approvals
Impact on South African Employment
16
Supporting Industrial Capacity Development
  • The manufacturing industry received the largest
    portion of funding.
  • R1.7 billion approved for motor vehicles and
    components industry
  • R646 million was approved in the clothing and
    textiles industry to support distressed companies
    and assist with competitiveness improvements
  • Infrastructure investments related mostly to
    funding for the construction industry and
    telecommunications infrastructure, with hospital
    infrastructure also receiving a significant
    portion of funding
  • Funding in the mining value chain was
    considerably lower than in previous years.
    Funding approved focussed on coal mining
  • Although funding the green economy is still a new
    area for IDC, several transactions were funded,
    including the roll-out of solar water heaters and
    a co-generation project.

Distribution of Value of New Funding
Approvals (2010/11)
Infrastructure(16)
Agricultural Value Chain(7)
Mining Value Chain(16)
Manufacturing(27)
Green Economy(13)
Tourism High Level Services(3)
Knowledge Economy(4)
African Development(10)
Not Aligned to NGP (3)
Excluding cancellations
17
Regional Distribution of Funding
Distribution of Value of New Funding
Approvals (2010/11)
  • 49 of approvals during the year destined for
    developments in provinces other than Gauteng, the
    Western Cape and KwaZulu-Natal compared to the
    36 that these provinces contribute to the SA
    economy.
  • Examples of industries supported by province
  • Eastern Cape
  • Motor vehicle production and components
  • Assembly of televisions
  • Hospital
  • Free State
  • Chicken abattoir
  • Gauteng
  • Motor vehicle production and components
  • Pharmaceuticals
  • KwaZulu Natal
  • Electricity co-generation
  • Motor vehicle components
  • Jewellery
  • Limpopo
  • Agro-industries
  • Mpumalanga
  • Mining services
  • Electricity pylons
  • North West
  • Motor vehicle components
  • Northern Cape
  • Malt production
  • Western Cape
  • Film studios
  • Clothing
  • Agro-industries

18
Sector Focus
19
IDC Focus Area Green Industries
The establishment of a unit focusing on green
industries allows IDC to cover a range of sectors
related to environmental products and services
Local manufacturing related to renewable energy
energy efficiency
Services related to renewable energy energy
efficiency
19
20
Green Industries
  • Solar Academy of Sub-Saharan Africa
  • The IDC approved funding for the roll-out of 200
    000 solar water heaters to the South African
    market. The company has a diversified portfolio
    of projects including the mass roll out of the
    low pressure SWH, high pressure SWH and
    investigating opportunities within the renewable
    energy space.
  • The low pressure SWH project is the first
    programmatic CDM SWH Carbon Project globally to
    be registered at the UNFCCC.
  • The project has rolled out 60,000 LPSWH units to
    the impoverished RDP Communities, uplifting their
    standards of living by providing them with hot
    water on tap, benefiting at least 240,000
    individuals.
  • The project supports localisation and in doing so
    is currently establishing a local manufacturing
    plant. The manufacturing facility would allow the
    local content of the product offering and
    service, creating 535 local job opportunities.
    The second phase of training will see 10 of all
    installers being trained to become qualified
    plumbers.

Gauteng
North West
Free State
KwaZulu-Natal
Sustaining and creating jobs ?
Building a new industry ?
Green industry ?
Eastern Cape
Western Cape
21
Green Industries
  • SA Calcium Carbide
  • SA Calcium Carbide is the only producer of
    calcium carbide in Africa, through the
    beneficiation of local limestone and coal mineral
    resources.
  • The company uses a large portion of the
    electricity supplied to the town of Newcastle.
  • Apart from the strain put on the electricity
    supply, recent tariff hikes will result in
    significantly higher production costs.
  • IDC will provide funding to assist with the
    installation of a co-generation facility,
    utilising furnace off-gas currently being flared,
    to reduce the companys reliance on the national
    grid for electricity.
  • Co-generation promotes energy efficiency and
    reduces the use of coal in power stations and
    hence qualifies for carbon emissions reductions.

Green industry ?
KwaZulu-Natal
22
IDC Focus Area Agro-Industries
By focussing its efforts on agro-industries IDC
will increase demand for labour intensive primary
agricultural products and add value to currently
produced products
Agro-Industrialisation
Demand side
International demand
Supply side
Import replacement
Value addition
Other (niche and new products)
Improved competitiveness
Primary agriculture
Creating backward linkages to drive job creation
and rural development
22
23
Agro-Industries
  • Peppadew International
  • Peppadew International (Pty) Ltd manufactures
    products based on the unique Sweet Piquanté
    Peppers and markets them locally and
    internationally under the Peppadew brand.
  • The company started in the late 1990s and has a
    processing facility in Nkowankowa, Limpopo,
    sourcing produce for processing through contracts
    with farmers in the surrounding region and its
    operations in Peru.
  • The economic crisis negatively affected the
    company in 2009 and projected sales growth failed
    to materialise. As a result, Peppadew received a
    working capital facility from the IDC to meet
    working capital requirements for the 2011
    production season.
  • The IDC funding will save 1 700 jobs in the
    factories and farms contracted to supply the
    peppers.
  • The funding offers additional potential for the
    IDC to partner with Peppadew to fund further land
    reform projects and establish a wholesale
    facility to fund emerging black farmers
  • The funding will also contribute towards the
    preservation of a uniquely South African
    international brand.

Limpopo
Sustaining jobs ?
Rural development ?
Supporting exports of South African products ?
24
Agro-Industries
  • The Noodle Factory
  • This start-up in the Western Cape, will
    manufacture instant noodles, which would
    previously have been imported from Asia..
  • The IDC approved a loan for the Noodle Factory
    for the establishment of a greenfields noodle
    production factory. The funds will be used for
    the construction and completion of the factory,
    for working capital and to acquire equipment.
  • This project will beneficiate low value
    commodities (wheat flour and vegetable oil) into
    higher value products.
  • This operation will create 21 direct jobs in
    Philippi and it has the potential to create more
    jobs once it expands.

Sustaining and creating jobs ?
Expansionary BEE ?
Import replacement ?
Adding value to raw materials ?
Developing a new industry ?
Western Cape
25
Agro-Industries
  • Green Farms Nut Company (GNFC)
  • Part of the biggest nut processing operations in
    South Africa with processing factories in
    Mpumalanga, KZN and Limpopo.
  • Established in 1991 to process macadamia nuts in
    the Levubu area in Limpopo.
  • IDC approved a loan facility to Green Farms Nut
    to upgrade its existing factory and provide a
    more competitive service to both its growers and
    customers.
  • The upgrade will result in a doubling of capacity
    over the next five years.
  • GNFC, together with the European Union, supported
    the Vhembe Co-Operative, owned by 350 Black
    Farmers for the establishment of macadamia
    production in the area.
  • The company is currently in talks with the local
    Ravele community to establish a joint venture to
    dehusk and dry nuts for the benefit of small
    scale emerging farmers.

Limpopo
Sustaining and creating jobs ?
Labour intensive industry ?
26
Agro-Industries
  • Grainfield Chickens
  • GFC will be a new sizable chicken (broiler)
    abattoir in the Free State
  • With a first phase capacity of slaughtering 160
    000 chickens per day, it will be the fifth
    largest in the country
  • At the end of the first phase of the project, it
    will be employing 780 people directly
  • Suppliers to the project will be setting up their
    own chicken houses, adding to the employment
    impact of the project
  • Through the project, c.a. 80 000 tons of maize
    will be beneficiated annually and imports of
    frozen chickens will be replaced.

Free State
Sustaining and creating jobs ?
Broad based black ownership for workers ?
Replacing imports ?
Introducing competition in the domestic industry ?
27
Agro-Industries
  • Dynamic Commodities
  • Established in 1996 and relocated to Coega IDZ in
    2006 with assistance from IDC
  • Manufactures sorbet and other frozen fruit based
    products for the export market
  • IDC provided various loans over the years and has
    recently approved another application for
    expansionary funding
  • Currently employs 860 people (annualised figure)
    with another 92 jobs (annualised) to be created.

Establishing a new industry ?
Assisting exporters ?
Assisting small enterprises to expand ?
Eastern Cape
28
IDC Focus Area AutomotiveSector, Fabricated
Metals and Capital Equipment
IDCs efforts in this industry revolve around
increasing local content
Automotive sector
Automotive assembly
Component manufacturers
SOE Capex programmes creates demand for locally
produced goods
Downstream metals
Fabricated metals
Capital equipment
28
29
Automotive Sector, Fabricated Metals and Capital
Equipment
  • The Motor Vehicle Industry
  • IDC approved R1.7 billion in 16 transactions to
    companies in the motor vehicle assembly and
    components industries
  • Funding approved to Ford Motor Company of SA to
    revamp its Silverton plant and upgrade its engine
    plant in Port Elizabeth
  • Components and other equipment supported include
  • Aluminium heat exchange and radiator tubes
  • Tooling and presses for the automotive industry
  • Exterior mirrors
  • Automotive plastics
  • Cross car beam assemblies
  • Assemblies for catalytic converters
  • Exhausts and mufflers
  • Interior carpets
  • Door insulators
  • Loadbin liners
  • Truck trailers
  • Chassis frame assemblies
  • Forged wheel hubs
  • Automotive control cables

Gauteng
North West
Sustaining and creating jobs ?
Replacing imports ?
Increased localisation ?
KwaZulu-Natal
Eastern Cape
Western Cape
30
Automotive Sector, Fabricated Metals and Capital
Equipment
  • Africa Cellular Towers
  • The company was established in 1999 to fabricate,
    supply and erect lattice towers for the telecoms
    industry
  • In 2007 the company took a decision to diversify
    by expanding into the electrical transmission and
    distribution industry
  • The company was awarded tenders by Eskom to
    install power lines and approached IDC to assist
    with the funding required to deliver on these
    contracts
  • IDC approved funding to cover the purchase of
    equipment, working capital requirements as well
    as a guarantee facility
  • The funding provided by IDC will assist the
    company to retain its existing labour force and
    create another 220 full-time equivalent jobs
    during the implementation of the contracts.

Limpopo
North West
Mpumalanga
Sustaining and creating jobs ?
Black empowered business ?
Localising SOE capital expenditure ?
31
Automotive Sector, Fabricated Metals and Capital
Equipment
  • Electro Inductive Industries
  • The company was established in 1999 with IDCs
    support as a small fledgling service and
    distribution centre for electrical transformers
  • Have been able to grow to a fully fledged
    original equipment manufacturer with the third
    highest market share in the domestic market
  • During the year, IDC provided funding to the
    company to sustain its operations through renewal
    of revolving credit facilities and guarantees as
    well as conversion of portions of its revolving
    credit facility to loans
  • The transaction saved 220 jobs.

Sustaining and creating jobs ?
Assisting SMEs to expand ?
Expansionary BEE ?
Production of capital equipment ?
Western Cape
32
IDC Focus Area Other Manufacturing Industries
Other Manufacturing Industries
Clothing, textiles, footwear, leather
Plastics and chemicals
Pharmaceuticals
Non-metallic minerals
Advanced manufacturing
Etc.
33
Other Manufacturing Industries
  • Econo-Heat Energy Efficient Appliances
  • The company was formed in 1990 to manufacture
    innovative and safe wall mounted heaters that are
    more energy efficient compared to competitor
    products
  • It has a strong presence in the local market and
    exports to 38 countries across the globe
  • They employ 109 workers in their Wetton, Cape
    Town factory
  • The company, which has been expanding over the
    past few years, has been funded for working
    capital requirements to deliver on local and
    export orders.
  • The funding will allow the company to sustain
    current operations and fulfil potentially growing
    orders.

Creating and sustaining jobs ?
Supporting exports of South African products ?
Western Cape
34
Other Manufacturing Industries
  • Ellen Arthur
  • Ellen Arthur was originally founded in 1959 as a
    cut, make and trim manufacturer of blouses for a
    major South African retailer.
  • It has since expanded to design and manufacture a
    range of ladies clothing
  • The company saw margins reducing and ultimately
    losing orders to domestic and international
    competitors as retailers put pressure on
    manufacturers to cut prices in an effort to
    maintain their margins
  • IDC provided a guarantee to allow the company to
    retain its overdraft facilities at a commercial
    bank that is vital for the companys working
    capital requirements
  • IDCs facility will assist the company to
    reconfigure their business to cater for a wider
    range of clients and diversify its client base
  • 460 jobs have been saved as a result of the
    transaction.

Sustaining jobs ?
Labour intensive industry ?
Black-empowered business ?
Western Cape
35
Other Manufacturing Industries
  • Chic Shoe Manufacturers
  • Chic Shoes was established in 2004 following the
    closure of a shoe factory in Cape Town. This was
    done partly through funding raised from IDC
  • The company has grown from strength to strength
    and is ready to expand following an opportunity
    to supply several footwear ranges to a major
    South African retailer
  • With most of the funding IDC provided in the past
    paid up, the company approached IDC for new
    funding and a guarantee facility to assist the
    company with working capital requirements for the
    expanded capacity was approved
  • 64 new jobs will be created in addition to the
    120 currently employed.

Creating new jobs ?
Labour intensive industry ?
Expansionary BEE ?
Assisting SMEs to expand ?
Western Cape
36
Other Manufacturing Industries
  • Synthecon Surgical Sutures
  • Synthecon is a local sterile surgical sutures
    manufacturer and distributor based in Isando. The
    company manufactures about 400 different sutures
    based on needle type and size, which are used to
    close the edges of wounds or incisions and to
    repair damaged tissue.
  • Synthecon has achieved a number of milestones
    since inception, including SABS certification for
    its products.
  • The company has successfully penetrated the
    export market, providing sales in Malawi,
    Mozambique, Swaziland, Uganda, Rwanda and
    Mauritius.
  • The initial funding created 45 jobs, mainly for
    women, with an additional 13 jobs created through
    the latest funding package.

Gauteng
Sustaining and creating jobs ?
SME development ?
Supporting exports of SA products ?
Localisation ?
37
Other Manufacturing Industries
  • WG Wearne
  • WG Wearne was incorporated in 1910 by the Wearne
    family and is a significant player in the ready
    mix concrete, aggregate and building materials
    market. The company has successfully grown since
    inception and has been profitable until 2008.
  • Wearnes operates across the country and employs
    people at its quarries, as well as through its
    distribution system.
  • The economic crisis and the downturn in the
    construction industry resulted in declining
    demand for the companys products.
  • During the year IDC approved funding to assist
    the company with its turnaround strategy and in
    the process save 700 jobs.

Gauteng
Limpopo
North West
Free State
Saving jobs ?
Broad-based ownership ?
KwaZulu-Natal
38
Other Manufacturing Industries
  • Vektronix
  • Vektronix was established in 1974 as SATV and was
    one of the first television manufacturing plants
    in the country
  • The company has since expanded to other products
    and is today a cost-effective electronics
    contract manufacturer
  • The company had been assembling CRT televisions
    for a major South Korean manufacturer for 6 years
    and in 2009, the company was awarded a contract
    to assemble flat panel (plasma, LCD) televisions
    for the same manufacturer
  • Initially the company applied for a guarantee
    facility from IDC to enable it to meet the
    requirements of its international supplier.
  • This was subsequently increased to meet
    additional demand in the previous financial year
    based on the companys good performance.

Sustaining and creating jobs ?
Labour intensive industry ?
Domestic value addition ?
Black-empowered company ?
Eastern Cape
39
Other Manufacturing Industries
  • Pharma-Q
  • Pharma-Q contract manufactures and packages
    pharmaceuticals from its facility in Industria,
    Gauteng
  • The company services more than 30 leading global
    companies for a diverse range of products
    including ampoules, dental cartridges, eye drops,
    oral syrups, sprays, topical ointments, tablets
    and capsules
  • As a result of changed regulations by the
    Medicines Controls Council, the company had to
    upgrade its facilities and at the same time
    modernise its plant and introduce new equipment
  • IDC approved funding to enable the company to
    upgrade and modernise , this should enable it to
    more aggressively enter the export market.

Gauteng
Improving competitiveness ?
Supporting exports of value added products ?
Improving efficiencies ?
40
IDC Focus Area The Mining Value Chain
IDC is involved in funding extractive mining
activities and encourages local downstream
beneficiation
The Mining Value Chain
Stage 1 beneficiation (e.g. smelted or refined
products)
Extraction
Stage 2 beneficiation (e.g. alloys)
Stage 3 beneficiation (e.g. semi-manufactured
articles)
Stage 4 beneficiation (e.g. fabricated articles)
40
41
The Mining Value Chain
  • Opencast Mining Services
  • Diesel Power Opencast Mining is an opencast
    contract mining and earthmoving contractor.
    Diesel Power was established in the mid 1980s
    and is now one of the largest opencast contract
    mining and earthmoving contractors in SA
  • The slowdown in the world economy resulted in a
    surplus of second-hand fleet, which significantly
    reduced used fleet prices.
  • This, together with the tougher credit climate,
    resulted in Diesel Power not being able to
    replace its fleet timeously resulting in downtime
    which negatively impacted the performance of the
    business since March 2009.
  • The IDC facility will enable Diesel Power to
    replace a portion of its fleet thereby reducing
    maintenance costs and downtime and restoring the
    business to profitability, saving 1 357 permanent
    jobs.

Mpumalanga
Sustaining jobs ?
42
The Mining Value Chain
  • Creative Design Manufacturers
  • Creative Design Manufacturers was established in
    1995 with the aim of providing quality gold
    jewellery chains to the local and export markets
  • During its previous expansions, the company
    received funding from IDC which has been fully
    repaid.
  • The company currently manufactures yellow gold
    chains, bangles and earrings and it needed
    working capital to expand its product range to
    include white gold jewellery
  • The working capital facility approved in 2010/11
    will assist the company to expand its operations
    and create 4 new jobs in the process.

Creating jobs ?
Downstream minerals beneficiation ?
Assisting SMEs to expand ?
KwaZulu-Natal
43
IDC Focus Area Tourism, creative industries and
high-level services
Tourism, creative industries and high-level
services
Film
ICT
Tourism
Healthcare services
Etc.
44
High-Level Services, the Knowledge Economy,
Tourism and Film
  • Cape Town Film Studios
  • Cape Town Film Studios was built in response to a
    call by the Western Cape Provincial Government,
    the City of Cape Town and Wesgro for proposals to
    invest in and build a film studio in Cape Town
  • The construction of the 4 sound stages and 2
    workshops have been completed and these are the
    only studios in Africa suitable for the
    production of big budget movies
  • Shooting of the first film to use the studio, the
    big budget new Judge Dredd production completed
    earlier in the year and at the height of the
    production saw 400 South Africans and 50 top
    internationals working at the studios
  • The SA Film value chain will benefit from
    attracting more and bigger films into SA for
    production.
  • IDCs investment in the studio will provide local
    movie makers with world class facilities.

Creating jobs ?
Improving competitiveness ?
Western Cape
45
High-Level Services, the Knowledge Economy,
Tourism and Film
  • Cross-Med Health Centre Mthatha Private
    Hospital
  • Cross-Med Health Centre, trading as Mthatha
    Private Hospital will construct a new 52 bed
    hospital in Mthatha
  • The hospital will provide ambulatory surgical
    services, inpatient surgical, medical and
    maternity services including primary healthcare
    and diagnostic services
  • IDCs funding, which includes an equity portion
    will result in the creation of 205 permanent jobs
    as well as 224 jobs during the construction
    phase.

Creating jobs ?
Development of a poor area ?
Eastern Cape
46
Prospects
47
IDC Sectoral Focus Areas
R102 billion funding available in the next
five years.
R11.1 billion
Logistics, infrastructure and cross-sector
projects
The green economy
Logistics
Industrial infrastructure
Green and energy saving industries
Bio fuels
R22.4 billion
Tourism, creative industries and high-level
services
Craft and film
Biotechnology
Business process services
R7.7 billion
Agricultural value chain
Tourism
Agro-processing
Forestry, paper pulp, furniture
Healthcare
Mining related technologies
ICT
R14.8 billion
Manufacturing activities
Automotives, components, medium and heavy
commercial vehicles
Metals fabrication, capital and transport
equipment
The mining value chain
Mining
Downstream mineral beneficiation
Advanced manufacturing
Plastics and chemicals
Clothing, textiles, footwear, leather
R22.1 billion
Pharmaceuti-cals
Oil and gas
Other funding areas Venture Capital R500
million Funding to distressed companies R2.5
billion
Grreen industry components
R20.8 billion
48
Prospects Some Projects in the Pipeline
  • Titanium and Zirconium Beneficiation
  • South Africa is the worlds second largest
    producer of titanium minerals after Australia
  • These ores are exported in basic beneficiated
    form of titanium slag and zirconium sand without
    beneficiated high-value add
  • To beneficiate these mineral ores into high-value
    added products, very specialised and complex
    technologies are needed
  • Two years ago, the IDC collaborated with the
    National Empowerment Fund, Magnesium Metals Ltd
    of Russia and Rare Metals Industries of SA by
    jointly investing R40 million in a
    pre-feasibility study to develop the project to
    beneficiate the ores
  • This mineral beneficiation project employing the
    proven Russian technology aims to construct and
    operate an unprecedented and world-first pure
    metals refinery complex producing titanium ,
    zirconium and silicon with their derivative
    alloys and products
  • It is expected that the complex will create at
    least 2 800 permanent jobs when fully operational
    and in excess of 5 000 jobs during the
    construction phase
  • Pure titanium and zirconium metals and their
    derivatives creates the potential for downstream
    local industries such as the production of
    micro-chips for computers and mobile phones,
    lightweight alloys for the aerospace,
    semi-conductors, photo-voltaic panels to harvest
    solar power and various industrial products for
    the medical, leisure and power generation
    industries
  • It is envisaged that the decision whether to
    proceed to a bankable feasibility study will be
    made later in the year.

49
Prospects Some Projects in the Pipeline
  • Bus and Green Transport Programme
  • A collaboration by IDC and the dti to promote
    local jobs in the medium and heavy commercial
    vehicle manufacturing industry and to promote
    greener public transport
  • Internally generated by the IDC team, in response
    to the industry dynamics in the sector and in
    pursuit of the objectives of the NGP and IPAP2
  • The local production leg focuses on restoring and
    building new manufacturing capacity in the sector
    in light of significant capacity decline over the
    past few decades
  • The objective of the program is to capitalise on
    increased domestic demand resulting from the
    expected recapitalisation of bus fleets
    nationally
  • IDC funding will be made available for plant
    establishment and expansion and a funding scheme
    for qualifying buses is being designed
  • Similar arrangements are being put in place for
    trucks, taxis and yellow goods
  • Mini- and midibus taxis are likely to see the
    largest investments in this sector, and the IDC
    are currently negotiations with several
    applicants, about their bids for setting up taxi
    manufacturing/ assembly plants in SA on a
    phase-in basis
  • Co-funding agreements with the large commercial
    banks are being negotiated, thereby crowding in
    private sector funding in support of local jobs
  • The green transport leg capitalises off the green
    economy focus of the NGP
  • IDC is promoting the generation and utilization
    of biogas from landfill sites, sewage sludge,
    food wastes, agricultural wastes, and non-food
    portions of energy crops
  • Off-takes for the gas from municipalities and
    other levels of government, for application in
    their own transport fleets is being envisaged.

50
Prospects Some Projects in the Pipeline
  • Malting House
  • The project envisages the design, construction
    and commissioning of a barley malting plant in
    the Northern Cape province
  • A significant amount of malted barley is
    imported
  • The project will supply local as well as regional
    brewers.
  • Gypsum Rapidwall Project
  • The project proposes the development of a plant
    to manufacture readymade building panels from
    waste material generated by Foskor
  • The Environmental Impact Assessment has been
    approved to erect the Rapidwall factory at a site
    in Alton, Richards Bay
  • National Nuclear Regulator approval is being
    sought for the use of gypsum in the Rapidwall
    panels
  • Work is progressing on agreements for the supply
    of gypsum, the off-take of panels and technology
    licensing to enable the commencement of
    construction.

51
  • Achievement of IDCs goals is dependant on
    partners
  • Business
  • Co-funders
  • Labour
  • Government and
  • Civil society

52
Prospects
Thank you
Industrial Development Corporation 19 Fredman
Drive, Sandown PO Box 784055, Sandton, 2146 South
Africa Telephone 011 269 3000 Facsimile 011 269
2116 E-mail callcentre_at_idc.co.za
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