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3 minute read
13 Nov 2020
8:39 am

IDC’s precarious finances a challenge for post-Covid economic recovery 


According to the financial statements, the Industrial Development Corporation has borrowings of R41.2 billion, of which R11.1 billion will be maturing in the 2020- 21 financial year.

South Africa's jobless rate is near a record at 27 percent despite higher levels of education. AFP/Rajesh JANTILAL

Minister of Trade, Industry and Competition Ebrahim Patel said in his foreword of the Industrial Development Corporation’s (IDC) latest annual report that “going forward, the IDC will have a significant role to play in the economic recovery post Covid-19… “The opportunities that will arise from the implementation of the African Continental Free Trade [Area] Agreement (AfCFTA) will need purposive partnerships with the private sector and a focus on manufacturing.” However, an analysis of the information published in its annual report for its financial period to the end of March 2020, suggests the company may not necessarily be financially sound. This...