IDC disburses R17bn and draws R28bn in co-funding as net profit rises to R2,3bn

The Industrial Development Corporation disbursed R17 billion in development funding in the year to 31 March 2026, a 4,3% increase on the previous period, and mobilised a further R28 billion from co-funders and investment partners.

The state-owned development financier says that funding is expected to create 71 228 jobs. The money went into industrial expansion, localisation, infrastructure and value-chain work across several sectors.

On-balance-sheet transformation funding reached R3,5 billion. Disbursements to small and medium enterprises came to R1,3 billion, against a target of R411 million.

“These results were achieved in a difficult operating environment, with many of our clients continuing to face pressure from subdued demand, infrastructure constraints and global trade uncertainty,” said Mmakgoshi Lekhethe, the IDC’s chief executive officer.

Lekhethe said export-oriented partners had felt the effect of United States tariff measures and uncertainty over African Growth and Opportunity Act benefits, which she said reinforced the case for diversifying markets.

The IDC reports the results against a better macroeconomic backdrop. Real GDP growth rose to 1,5% in the period from 0,4% before, supported mainly by stronger household consumption. Inflation moderated to 3,3%, and the repo rate was cut by 75 basis points to 6,75%.

Fixed investment stayed weak and industrial sectors continued to operate under pressure, though improved energy availability and structural reforms supported signs of resilience.

“Although growth remains below the level required to meaningfully reduce unemployment and poverty, the foundations for recovery are strengthening,” Lekhethe said.

Company profit up, group in the red

The corporation remained profitable at company level, with net profit rising to R2,3 billion from R1,8 billion. At group level, losses and negative performance across selected subsidiaries and associate companies produced a R4,7 billion loss.

The IDC improved its company debt-to-equity ratio to 47,7% and reduced non-performing loans to 35,1%.

“Despite the economic headwinds, the IDC funding model remains resilient,” said the IDC’s chief financial officer, Malevu. “We improved our Company debt-to-equity ratio to 47,7% and reduced non-performing loans to 35,1%, strengthening our ability to support industrial development, investment mobilisation, job creation and economic transformation.”

R2,3bn for renewable energy

The corporation advanced approximately R2,3 billion in renewable energy funding during the year, which it says supported energy security, green industrialisation and business resilience. Other priority areas it names for continued investment are critical minerals and battery manufacturing, green and circular industries, agro-industrial development, digital infrastructure and the blue economy.

The IDC also expects to play a role in modernising and expanding the national electricity transmission network. Through a partnership with the National Transmission Company South Africa, it aims to align infrastructure rollout with localisation and industrialisation goals so that South African manufacturers take part in the build programme.

“The IDC continues to align its investments with the emerging industries and value chains that will shape the future of South Africa’s economy,” Malevu said. “Our strategic focus is now increasingly directed towards future-facing, job-rich sectors with strong potential to enhance industrial competitiveness, create sustainable employment and position the country to benefit from shifts in global investment and trade patterns.”

The figures are the corporation’s own, for a financial year that closed on 31 March 2026. The disbursement total is what the IDC put out, the co-funding is what it reports mobilising from partners, and the job number is what it expects the funding to create. The group loss sits alongside the company profit in the same set of accounts, and the corporation has not said which subsidiaries or associates drove it.

For an ordinary reader the R1,3 billion in SME disbursements against a R411 million target is the line with the most direct reach, because that is money that reaches smaller firms rather than large industrial balance sheets.

Source: Industrial Development Corporation, IDC disburses R17 billion and mobilises R28 billion in co-funding to support industrial growth and jobs, https://www.idc.co.za/idc-disburses-r17-billion-and-mobilises-r28-billion-in-co-funding-to-support-industrial-growth-and-jobs