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A rock and a hard place: IDC's tough call between development and its own sustainability

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IDC CEO Tshokolo Petrus Nchocho. Picture: Leon Sadiki
IDC CEO Tshokolo Petrus Nchocho. Picture: Leon Sadiki

The Industrial Development Corporation (IDC) is in a tight spot, the company's latest integrated report shows.

The state-owned development finance institution, which predominantly finances businesses in the manufacturing sector and has a mandate to develop black industrialists in South Africa, has posted a R3.8 billion loss for the year in 2020, many of its clients are struggling to repay their debt, yet the government wants it to play a bigger developmental role to help the country recover from Covid-19.

The development financier published its integrated report for the year ended on 31 March on Monday, meaning the severe impact of the lockdown has not yet been captured in the current financial statement. But even before the lockdown, the IDC's balance sheet was hammered by the collapse in Sasol’s share price and the weakening of its unlisted equity book.

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