Organisation: Industrial Development Corporation (IDC)

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Description

The Industrial Development Corporation of South Africa Ltd (IDC) - established in 1940 - is a self-financing, national Development Finance Institution. Its mandate is to promote economic growth and industrial development in South Africa. One of the IDC’s initiatives, the Agency Development and Support Department (ADS) is tasked with advancing and leveraging the development and job creation potential inherent in various geographic areas, particularly those falling outside the industrialised centres, via the establishment of development agencies.

These focus on the following:

  • The development of the economic potential on a local or regional basis by building on the unique competitive strengths of each region’s economy and assets;
  • Leveraging public and private resources for development opportunities;
  • Fostering innovative thinking and entrepreneurial activity which support and drive economic growth; and
  • Managing the spatial organisation of the area in a socially efficient manner, through the use of public land and targeted private projects in particular.

The IDC funding and support model includes typically the phases outlined below:

Agency development phases

Objectives

Phase1: Pre-funding phase

·         Political buy-in of the agency concept

·         This is a not a funding phase for the IDC

Phase 2: Pre-establishment phase: Funding capped at R800 000

·         Prepare internal and external systems and procedures and initiate operational planning

Phase 3: Establishment phase: funding capped at R2, 5 million

·         Agency establishment and project planning

Phase 4: Operational Phase: funding capped at R5 million pa for three years

·         Programme and project implementation

Phase 5: Exit phase

·         Final evaluation and IDC withdrawal

To date the IDC has supported the establishment of 30 development agencies throughout South Africa, amongst them the Blue Crane Development Agency, the Hibiscus Coast Development Agency and the Mandela Bay Development Agency to name but a few.