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PERCCI & IDC

IDC representation – Dr Ntokozo Mthembu; Ufikile Khumalo; William Smith; Cynthia Peinke; Mohammed Shaik; Mazwi Tunyiswa and PERCCI President, Alfred da Costa.

Emphasising a strong need to introduce more entrepreneurs to the Eastern Cape, Ufikile Khumalo, division executive of resource sectors at the Industrial Development Corporation (IDC), said that sustainability and employment are main factors to be considered going forward. Speaking at a business breakfast hosted yesterday, he showed statistics from the corporation that indicate a slow down to the economic problems if Foreign Direct Investment (FDI) increases. “There is still uncertainty, but world trade flows are improving,” he said.

With the aim of informing the local business community about the corporation’s funding of entrepreneurs and business during these extra-ordinary times, it was interesting to note that the IDC offers a training academy to entrepreneurs where they can learn about pertinent business gaps in the market, and that ‘distress funding’ has been identified for businesses who are currently struggling, but who showed profitability before the recession. “Through this fund, we are looking at the post-crisis time for companies, when things start improving. Aspects considered include management remuneration, job losses and payments to creditors,” Khumalo. R1.1-billion has already been appointed for 23 companies in the period of April 2009 to January 2010. Companies have to demonstrate economic and financial viability and sustainability, require R1-million or more and operate within an IDC sector focus area to be eligible for consideration.

Project Mthombo – the 400-barrel-a-day oil refinery planned for the Coega Industrial Development Zone – will bring many more industries to the Bay area according to the IDC. Representatives of the corporation believe that the project will increase the area’s competitiveness, encourage more companies to invest in the Bay area and a spin-off of the refinery will be electricity generation – a much needed commodity in this day an age as the electricity price hike by NERSA has come into effect.