State-owned finance institution gives R23.4 billion to 48 people

Trade Minister Parks Tau revealed that 48 black industrialists benefited from the R23.4 billion disbursed by the Industrial and Development Corporation (IDC) in the past financial year. 

This revelation was made in response to a question in Parliament by MP Thokozani Langa at the end of September. 

Langa asked Tau for the number of black-owned businesses that benefitted from the R23.4 billion allocated by the IDC to black industrialists. 

The IDC is South Africa’s primary national development finance institution, which was established in 1940 to promote industrial development. 

It operates as a self-financing, state-owned enterprise operating under the Department of Trade, Industry, and Competition. 

The IDC has been central to some of South Africa’s biggest business successes, including the creation of Sasol, Foskor, and Iscor. 

These companies grew to become global giants, with Sasol producing a third of all fuel in South Africa and operating the only commercial-scale coal-to-liquids synthetic plants in the world. 

Foskor is still owned by the IDC and is South Africa’s only vertically integrated phosphate producer and a major global supplier of phosphate rock and phosphoric acid. 

Phosphate is a critical ingredient in synthetic fertilisers and can be turned into feed supplements for livestock.

However, while these investments have been successful, not all of the funds allocated by the IDC have driven positive outcomes. 

The corporation has come under criticism for failing to further industrialise South Africa’s economy and for sitting on the sidelines rather than helping to prevent the collapse of local industry. 

To this end, in recent years, it has handed a lifeline to some of South Africa’s biggest industrial companies, including its former subsidiary Iscor, now ArcelorMittal. 

The IDC has stepped in to prevent companies from shutting down operations by investing in them or providing loans. 

Apart from ArcelorMittal, the IDC has been involved in keeping sugar producer Tongaat Hullett alive and operating. 

48 industrialists strike it big

Questions remain about where the majority of the IDC’s funding goes and whether it is being used to transform the economy by helping black-owned businesses access funding. 

To this end, MP Langa asked Tau to provide details regarding who received the R23.4 billion given to black industrialists and how it is helping them grow their businesses. 

“The IDC allocated R23.4 billion towards black industrialists in 2025. A total of 48 black industrialists benefitted from this allocation,” Tau said. 

“The IDC has further implemented a range of interventions to improve access for black-owned businesses to capital-intensive, export-oriented, and advanced manufacturing sectors.”

These interventions include targeted funding programmes for black industrialists, which is referred to as The Black Industrialists Programme. 

This provides funding to black entrepreneurs who own and lead industrial businesses in strategic manufacturing and value-adding sectors. 

There is also the Black Industrialist Scheme, which provides an incentive for black industrialists to participate in the manufacturing sector. 

It also helps these businesses enter the relevant value chain for their products and capabilities. Tau said this targets both local and export markets. 

Other interventions include the IDC’s Transformation Funding Initiatives, which prioritise funding for black-owned enterprises. 

Tau explained that the IDC’s mandate pushes it to also improve access to financing for the priority groups and reduce barriers to entry in industrial sectors. 

“The IDC continuously monitors and evaluates the developmental impact of its funding through established development impact assessment and reporting frameworks,” Tau said. 

These assessments consider the growth in production capacity and expansion of the funded enterprises over their funding period. 

The businesses also have to show financial sustainability over an extended period of time for the IDC’s investment to be considered successful. 

Employment creation is another major consideration for the IDC in assessing its investments, along with whether other it can help get other funding sources to finance relevant enterprises.