The Public Investment Corporation has forged a renewed alliance with the Industrial Development Corporation to pursue joint investments in initiatives of shared interest across South Africa and the broader continent, according to a joint statement released by the entities on 3 November 2025. This memorandum of understanding reinstates a comparable accord established in 2012, which expired in 2017, aiming to leverage their combined strengths for socioeconomic advancement.
IDC chief executive Mmakgoshi Lekhethe, who assumed the position in February following Tshokolo Nchocho’s departure at the close of 2023, emphasised the synergy between the organisations’ goals. Prior joint efforts have substantially advanced renewable energy developments and employment preservation through the Unemployment Insurance Fund, effectively mitigating risks in emerging sectors.
Notable outcomes from the earlier partnership include the Public Investment Corporation Green Bond, backed by the Government Employees Pension Fund, and the Unemployment Insurance Fund 2. Discussions are underway for a third such fund, which would prioritise projects fostering job creation and retention in sectors aligned with both entities’ priorities.
The Public Investment Corporation, managing assets exceeding R3.5 trillion, stands as the Johannesburg Stock Exchange’s foremost investor and has expanded its unlisted holdings to surpass R100 billion, diversifying beyond traditional equities amid market volatility. This strategic shift supports South Africa’s developmental agenda, with unlisted investments yielding average annual returns of twelve per cent over the past decade, as reported in the corporation’s 2025 integrated annual report.
Meanwhile, the Industrial Development Corporation disclosed a sharp decline in net profit for the 2025 financial year, dropping to R329 million from R7.5 billion previously, exacerbated by impairments escalating to R21.3 billion from R19.5 billion. Notwithstanding these setbacks, the corporation ramped up allocations to priority demographics, more than doubling disbursements to black industrialists to R23.4 billion.
Public Investment Corporation chief executive Patrick Dlamini, appointed in June, outlined the pact’s intent to optimise resources and expertise for portfolio expansion. The collaboration seeks to rejuvenate South Africa’s industrial base and nurture nascent industries, including green hydrogen, critical minerals, electric vehicle supply chains, infrastructure, advanced manufacturing, e-commerce, and high-value agriculture and agro-processing.
This renewed synergy arrives amid broader economic pressures, with South Africa’s infrastructure backlog estimated at R2.5 trillion and a push for sustainable financing, as highlighted by the National Treasury in its 2025 medium-term budget policy statement. By pooling capabilities, the duo aims to catalyse transformative projects, potentially unlocking R500 billion in private sector inflows for Africa’s energy transition by 2030.