IDC CEO Tshokolo Nchocho discuses full-year performance, investment strategy

The Industrial Development Corporation (IDC) has weathered a challenging year marked by disruptions due to the pandemic, with a 37 per cent decline in investments for the year ended March 2021. Tshokolo Nchocho, CEO of IDC, recently sat down with CNBC Africa to discuss the corporation's full-year performance and investment strategy. Nchocho provided an overview of how IDC's investee customers coped with the impact of the pandemic. While some sectors, such as tourism and clothing and textiles, faced significant challenges due to closures and disrupted supply chains, others like renewable energy, agriculture, and mining managed to hold up well. IDC had to offer various support measures like repayment moratoriums, liquidity support, and solvency support to help businesses navigate through the tough times. Despite the challenges, Nchocho highlighted that there has been a noticeable recovery in recent months. IDC provided 778 million rand in support to struggling clients and saw improvements in debt service arrangements, leading to increased liquidity holdings. The corporation's balance sheet remained resilient amidst the stresses of the past year. Nchocho mentioned that IDC's portfolio of listed stocks, including companies like Sasol and Kumba Iron Ore, provided liquidity through dividends, which was crucial for redeploying capital towards the development of other sectors. Looking ahead, IDC is focusing on key areas for future investments. Nchocho emphasized the importance of the energy and renewable energy sector, particularly with policy changes allowing for self-generation and the next rounds of renewables. The corporation is also actively involved in infrastructure projects, working with entities like Transnet to enhance logistics systems in the country. Additionally, the automotive industry's shift towards producing emissions-free cars by 2030 presents opportunities for IDC to support component suppliers. While IDC's strategy in the African continent is evolving, Nchocho highlighted a shift towards a more deliberate approach in selecting specific jurisdictions, sharing risks with partners, and being selective in the sectors they invest in, aligning with their mandate. In closing, Nchocho expressed optimism about the future and the role IDC is poised to play in driving economic development and job creation in South Africa and beyond.