How did the Industrial Development Corporation (IDC) do it? In its annual results presentation this week, the IDC revealed that it had saved or created 33 000 jobs between April last year and March this year.
“The IDC is not interested in short-term contracts and is intent on medium- and long-term initiatives,” says Lumkile Mondi, vice-president of the IDC.
IDC support has meant that 19 000 jobs were created or saved in the services sector. The resources, utilities and industrial sectors had 28 000 jobs created or saved.
The services sector is growing, so labour absorption is not suprising, but the number of jobs saved in the other sectors is significant and could provide pointers to solving the country’s major conundrum of unemployment.
The IDC only gets involved in activities that are sustainable and will lead to long-term economic development. Through its associations with existing businesses, new start-ups and financial backing, the IDC ties up with stakeholders across the industries, identifies work opportunities and bankrolls projects that will generate jobs.
“The developmental returns for the country have been substantial,” says Mondi.
The IDC, which is a former pillar of apartheid, was created in 1940 and has managed to contribute significantly to the equitable distribution of growth through its support for BEE companies. In the year under review, the IDC financed more than R3,4-billion in BEE start-ups. Favourable market conditions and the continuing boom in consumer spending will mean more jobs.
Mondi insists that the IDC’s success in job creation and retention is the result of its ability to do business differently with its strategic units across the sectors.
By far its biggest beneficiaries were small and medium enterprises, and entrepreneurs in agriculture, healthcare, mining and beneficiation. Franchising, media, motion pictures and public-private partnerships have also benefited.
The group reported a record profit of R4,345-billion for last year. This is a sizable jump from the R753-million for the year before.
Merril Lynch, the international stockbroking firm, says that between 510 000 and 740 000 jobs need to be created a year for the government to reach the targets spelt out in its accelerated and shared growth initiative.