After Industrial Development Corporation boss Geoffrey Qhena ordered that the walls of his fancy Sandton office be smashed down to make way for an open-plan structure, he knew he would be unpopular.
But his unpopularity was short-lived, said colleague Mandla Mpangase: “Now everyone likes that they don’t have to knock on his door to ask something and we find him an open and approachable guy. He knows everyone by their first names.” Qhena’s space is a large, airy, light-filled “cubicle”. I choose to sit close to him on comfortable soft orange couches, drinking filtered coffee at 7am, as his voice is soft.
Born and bred in Meadowlands, Soweto, the 46-year-old son of a gold-miner father with a standard two education and a factory-worker mother is dressed in a dapper but conservative navy blue suit with silver cufflinks. A chartered accountant by profession, Qhena said that after the walls came down he had an issue with the noise of loud voices but now everyone has learned to keep it down, after he made a “few rules”.
He might not be a loud voice within the walls of his office, but he has a powerful role in ensuring that the 700-staffed corporation delivers as South Africa’s leading development finance institution for industrial expansion and diversification. He probably has one of the most pressured tasks: the corporation’s target is to create 19?650 full-time employment opportunities this year associated with new forms of economic activity locally and to save 11?650 jobs through distress funding. It is on a nationwide road show with a loot of money to deliver on its job-creation mandate.
The Industrial Development Corporation’s business includes financing entrepreneurial Âstart-ups, as well as expansion and innovation for small, medium and large business. For example, there is about R4.1-billion for distress funding and R1.7-billion for motor vehicle financing. But Qhena knows the Âcorporation will not be able to make a huge dent in what he describes as his Âbiggest fear: “Unemployment is too high.”
With the rate of joblessness Âsitting at around 26%, unemployment is the biggest economic crisis facing South Africa. “It might undermine democracy.” In the same breath, though, he talks about “exciting” Âopportunities and possibilities for job creation and business, which, he said, South Africans do not grasp.
Besides the R10-billion job-creation fund, there is now a soft-loans project at prime less 3% over five years. The cost per job should be less than R500?000. This is to encourage and promote investments in both energy efficiency and renewable energy in South Africa.
“The big message is that we are making an effort with soft loans, which will enable soft landings, but we really need the partnership; we need more ideas so that sustainable jobs can be created. The idea of soft loans is to encourage business. It’s a carrot to drive our agenda — job creation. And it’s not sector specific. But we need the partnership from business people; we need the ideas to flow so that sustainable jobs can start.”
Qhena’s new passion is green technology, which he believes is the way of the future. For the first time since 1940 the corporation will now pump money into businesses exploring “green” technology energy. “We are going to run out of conventional forms of energy and we can’t rely on Eskom forever,” he said.
Qhena is urging entrepreneurs and businesses to submit bids for funding to take green energy forward. “Recycling is going to be big and lots of people will make a living through this.” He said there was a “delay” with the energy regulator, Nersa, but all is on track now for green technology to take off. “We have to embrace solar as a country. We have to reduce emissions to save the environment.”
There are some constraints in that South Africa does not have the technical manufacturing capacity in some areas, but Qhena points out that the country can make steel frames and valves. “Let’s look at what local competence we do have and build on that. We can make geysers, for example. We have to look at what goes into manufacturing a geyser — a solar geyser. Then we need to make sure there are orders for this — so bearing in mind economies of scale.”
He conceded that the corporation is not doing as much as it could do. But there are many hurdles around policy, he said, that are holding it back: “There have to be more policy adjustments with government; this area can be improved. We have seen an improvement with water licences, for example.”
The other problem he has experienced is the dishonesty of so many people. “We have people who take the money and run, but they often get caught and end up with the commercial crimes unit. This is state money. You are defrauding the state. “We have to root out corruption. We have to create jobs. This country has so much potential.”
He is clear that South Africa “should not be banking on our old glory of being the gateway to Africa. We have to stop seeing opportunities to enrich ourselves and line our pockets but rather to make a difference in other people’s lives and to make a dent in unemployment.” Qhena ends the interview by apologising for being so busy and unavailable for a few weeks. “But then I didn’t know journalists could meet at 7am.”
Geoffrey Qhena at a glance
Born: November 4 1965 in Soweto. Now lives in Glenvista.
Education: Attended Dube High School. Obtained his BCompt from Unisa. Is a qualified chartered accountant. Has a supplemental environmental project certificate from Witwatersrand University and Harvard and an advanced tax certificate from Unisa.
Career: Joined the IDC in the mid-1990s. Was chief financial officer in 2003; became chief executive in 2005. Lectured at Vista University and worked at Transnet.
Interests: Marathon running, golf and watching soccer.
Water heater project approved
The Industrial Development Corporation approved the first low-pressure water heater project for mass roll-out to RDP housing projects in seven provinces over the next two-and-a-half years, according to its 2011 annual report. The project creates 535 jobs and installation has begun. The report indicates that 87% of all components are sourced locally. The second phase of training will produce qualified plumbers from 10% of all installers. The project is targeted at nine sites including eThekwini in KwaZulu-Natal; Ekurhuleni in Gauteng; Potchefstroom in the North West; Bloemfontein and Kroonstad in the Free State; Port Elizabeth, Uitenhage, Jansenville and Steytlerville in the Eastern Cape; Mossel Bay, Saldanha Bay and Theewaterskloof in the Western Cape.