IDC focused on job creation through partnerships

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“We must bring new capacities into this economy so that jobs can be created. It can’t be the IDC on its own – we do this in partnership because we provide the financing, we provide the environment and then business comes up with the ideas,” Qhena, the Chief Executive Officer of the Industrial Development Corporation (IDC) told CNBC Africa on Monday.

The IDC reported a group revenue increase from 10.9 billion rand in 2012 to 14.5 billion rand in 2013 in its full year results.

Group operating profit however, decreased from 3.4 billion rand in 2012 to 2.4 billion rand in 2013 and profit before tax decreased from 3.4 billion rand to 1.9 billion rand.

The industrial project financier also reported approvals of 13.1 billion rand and disbursements of 16 billion rand.

Qhena believes that the IDC’s distribution figure is crucial to what the company does and insists that the resultant employment numbers still aren’t high enough.

“These approvals that we’ve made means we’ve invested, created or supported businesses. There’s about 230 odd for this financial year that we’ve approved either through new businesses, about 52 of that is new businesses, or through new expansions. From those approvals, about 19,000 new jobs will be created and we’ve saved about 4,000,” he explained.

Some have said that the South African government is not working in line with its National Development plan (NDP) to create jobs in the country.

Qhena maintained that partnerships are fundamental to the government’s NDP and to the future of the South African economy.

“It will be implemented if we are all in partnership. It’s important that partnership exists, it’s important that there’s dialogue. In this day and age we need to stimulate our economy. I think all of us need to have a common purpose because with these levels of unemployment, I don’t think we have the luxury of time.”