The Industrial Development Corporation (IDC) is widening its investment net to focus on future-facing industries, including critical minerals and digital infrastructure, as it positions itself to become an engine for economic growth.
This is according to CEO Mmakgoshi Lekhethe, who told a media briefing on Thursday the IDC was working to develop the critical minerals sector and to expand the scope of mining these minerals in South Africa and the Southern African region.
Through the R400m Junior Mining Exploration Fund launched in 2024, the IDC, in partnership with the ministry of mineral & petroleum resources and the Council for Geosciences, has bolstered junior mining companies seeking funding for prospecting activities.
Lekhethe said the fund aimed to expand exploration, pointing to how Anglo American had also invested in the fund.
“Exploration is an area that has not attracted as much funding as is needed, and so we’re focusing on critical minerals,” she said. “Alongside that are the related value chains, which are battery storage and other value chains mainly in the green economy.”
The IDC will also focus on digital economy infrastructure, including systems and data centres, and expand its focus on infrastructure related to supporting the transmission development programme in partnership with the Development Bank of Southern Africa.
We’re in the process of finalising the establishment of the transformation fund. We’re concluding on the appointment of the board that would oversee the transformation fund and the management mechanisms with mobilised resources. Part of the mandate of the transformation fund includes dedicated township and rural-based enterprises
— Parks Tau, minister of trade, industry & competition
It also announced plans to fund new industries.
“The IDC must help to finance the next generation of productive sectors in the economy, not only the legacy sectors that we are known for,” Lekhethe said.
Founded in 1940, the IDC is focused on funding high-impact projects and creating viable new industries. Some of its investments include stakes in companies such as ArcelorMittal South Africa.
However, transparency has been problematic, and on Friday the IDC said it would establish a complaints review panel headed by the board to improve transparency and improve communication.
Addressing the media on Friday, board chair Gloria Serobe said the complaints platform was meant to deal with unfair treatment and address process fairness while improving communication delays and breakdown. “The board decided we’re not capable of dealing with these complaints in a way that will support and make the complainants happy,” she said.
Serobe said the panel, to be chaired by a board member, would be made up of outsiders who are skilled to make a difference and would report to the board monthly. She said the board would be tested for a year to see how well it worked. “It is our attempt to say we’re attending to the complaints,” she added.
Minister of trade, industry & competition Parks Tau said a number of complaints had been raised and every complaint would be dealt with on its own merits.
Tau said the IDC was also taking steps to develop rural and township economies. He said the government had identified issues of township and rural economy financing, BEE financing and transformation financing as areas that require attention.
“We’re in the process of finalising the establishment of the transformation fund. We’re concluding on the appointment of the board that would oversee the transformation fund and the management mechanisms with mobilised resources. Part of the mandate of the transformation fund includes dedicated township and rural-based enterprises.”
Business Times
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