The Industrial Development Corporation (IDC) has achieved an impressive surge in disbursements, reaching a total of R17.8 billion for the fiscal year 2022/23. This marks a significant increase of 147% compared to the previous year’s disbursements of R7.2 billion.
- Despite facing economic headwinds and the disruptive impact of the Covid-19 pandemic, the IDC managed to come close to its long-standing target of R20 billion in disbursements.
- The institution also reported a noteworthy 29.4% rise in approvals, totaling R20.7 billion. This indicates a strong transaction pipeline and a positive outlook for investment in various sectors.
- The CEO of the IDC, TP Nchocho, attributed the surge in disbursements to a combination of successful large transactions and internal improvements in transaction origination and execution.
- Notable deals during the period include a R3.5 billion agreement to support the expansion of Northam Platinum.
- The IDC remains optimistic about the future, with several significant transactions in the pipeline across sectors such as automotive, coal, agriculture, and renewable energy. The successful closure of these deals will determine the prospects for repeating the performance in the next fiscal year.
- The group’s profit increased by 70% to R10.7 billion, supported by turnarounds in subsidiaries like Foskor and Grinding Media. However, concerns still remain regarding impairments, non-performing loans, and the asset base, which decreased by 5% to R161 billion.