Page 27 - IDC

6 CITY PRESS, 29 MAY, 2016

Terry Pratchett: It doesn’t stop being magic

just because you know how it works

The IDC’s agroprocessing book The IDC’s new industries bookoss bookbes bbb

117 Number of businesses funded in the past five years

16 869 Number of jobs created and saved 80 Total number of businessesnesses
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R 5 475 658 615 Total investment 1 441 Number of jobs created and savedre av av av av av aved
22 Number of businesses owned by black men R656 605 158 Total investmenttmtmtmnv

17 Number of businesses owned by black women

WHERE THE BUSINESSES ARE SECTORS

Eastern Cape North West Agroprocessing Manufacturing of components Solar power
Number of businesses: 19 Number of businesses: 1 Number of businesses: 3 related to renewable energy Number of businesses: 1
Investment value: R368 227 368 Investment value: R5 500 000 Total investment: R10 100 000 generation Total investment: R93 100 000
Jobs created and saved: 996 Jobs created and saved: 0 Number of businesses: 1
Automotive components Total Investment: R11 000 615 Other
Free State Northern Cape Number of businesses: 1 Number of businesses: 19
Number of businesses: 14 Number of businesses: 21 Total investment: R4 850 000 Metals & capital equipment Total investment: R109 334 400
Investment value: R413 643 100 Investment value: R1 077 710 747 Number of businesses: 9
Jobs created and saved: 1 310 Jobs created and saved: 3 155 Biotechno Total Investment: R60 397 589 WHERE THE
Number of businesses: 3
Gauteng Western Cape Total investment: R45 370 000 Other healthcare facilities BUSINESSES ARE
Number of businesses: 25 Number of businesses: 32 & activities
Investment value: R995 805 549 Investment value: R667 505 484 Electronic & electrical Number of businesses: 6 Gauteng
Jobs created and saved: 3 575 Jobs created and saved: 2 333 products & components Total investment: R57 923 804 Number of businesses: 39
Number of businesses: 19 Investment value:
KwaZulu-Natal Kenya Total investment: R123 577 627 Other manufacturing R397 725 451
Number of businesses: 17 Number of businesses: 1 Number of businesses: 4 Jobs created and saved:
Investment value: R121 820 735 Investment value: R132 076 000 Energy efficiency: Heat, Total investment: R48 500 000 1 212
Jobs created and saved: 812 electricity & building efficiency
Mozambique Number of businesses: 1 Other transport equipment KZN
Limpopo Number of businesses: 3 Total investment: R17 700 000 Number of businesses: 2 Number of businesses: 1212
Number of businesses: 12 Investment value: R659 893 562 Total investment: R14 551 123 Investment value:
Investment value: R428 787 180 Forestry, paper, pulp & R47 650 672
Jobs created and saved: 3 252 Namibia furniture Pharmaceuticals Jobs created and saved: 49494949
Number of businesses: 1 Number of businesses: 1 Number of businesses: 2
Mpumalanga Investment value: R525 000 000 Total investment: R2 500 000 Total investment: R16 100 000 Western Cape
Number of businesses: 5 Number of businesses: 29
Investment value: R27 588 890 Swaziland ICT Plastics & chemicals Investment value:
Jobs created and saved: 1 436 Number of businesses: 32 Number of businesses: 5 Number of businesses: 3 R211 229 035
Investment value: R667 505 484 Total investment: R39 250 000 Total investment: R2 350 000 Jobs created and saved:
180
Lizeka Matshekga, the IDC’s executive
responsible for agroprocessing, industrial
infrastructure and new industries

COBUS PRINSLOO, Graphics24

Wanted: hot black
NICKI GULES
nicki.gules@citypress.co.za

ome of the new high-tech ventures the Industrial
Development Corporation (IDC) is engaged in include a new
machine that more accurately diagnoses breast cancer and a
company that cleans raw natural gas more cheaply.
Lizeka Matshekga is the executive responsible for the new
Sindustries strategic business unit at the IDC, as well as
industrial infrastructure, agroprocessing and agriculture.
She is now using the skills she honed by working on South Africa’s
world-renowned renewable energy independent power producer technopreneurs
programme – which is part of the IDC’s industrial infrastructure portfolio –
to encourage local entrepreneurs to participate in the new global
industrial revolution.
“As the IDC, we took a new approach in 2015 when we established the
new industries strategic business unit. The primary objective of this unit is
to identify and support the most promising new and emerging industry
value chains and enabling technologies,” she says.
“It means that, as the IDC, we have identified eight sector candidates The IDC has identified sector candidates that have the potential to be
that have the potential to be the next game-changing industries in South
Africa. In that regard, we are playing a proactive role in developing these
industries.” the next game-changing industries in SA and is encouraging local
These hot new sectors include energy storage and fuel cells, in which
platinum – of which there is plenty in South Africa – is used in up-to-date entrepreneurs to participate in the new global industrial revolution
technology batteries that can store more energy more efficiently.
Also included are medical devices, such as the Lodox X-ray machine,
which performs a full-body scan on critically injured patients in just 13
seconds. Added to the list of new sectors is gas beneficiation, an example
of which is Klydon Gas, which aims to export its globally unique and
competitive technology. Big jobs potential
In addition, there is the new nanotechnology, 3-D printing, as well as
the Natural Products sector which involves the use of indigenous plants in TIPS FOR
pharmaceuticals, supplements and cosmetics. TECHNOPRENEURS
A new industry that is being developed to tag on to the independent in agroprocessing
power producer programme involves stimulating a home-grown industry to 9
supply parts and components for renewable energy power plants. If you want to obtain
“We played a key role in the development of this industry in South funding from the IDC, here
Africa and we still believe we have to play a key role in the With a prevailing drought, a shortage of available arable land and are a few tips from
localisation of the industry, creating industries around the sometimes low returns, the agroprocessing sector may not be the
renewable energy sector to build products such as sexiest career. But for Lizeka Matshekga, it’s a golden Matshekga:
photovoltaic panels,” Matshekga says. A opportunity to create jobs and tap into the potential the rest
“It is slow, but I think there is huge potential. We engage of Africa presents.
the relevant government departments – the departments PROJECT IN “With our land-availability and water-scarcity constraints, Your project has to display good prospects of economic viability. There
of energy, trade and industry – to influence policy that we need to look at neighbouring countries. There are 1has to be a balance between the socioeconomic and the financial
will encourage the renewable energy participants to PARTNERSHIP opportunities for us to integrate the region. Agroprocessing sustainability elements. We have to leverage and capitalise on South Africa’s
source goods locally. and agriculture is long term and has low returns competitive advantage.
“For funding applicants to qualify for support – sometimes, but the socioeconomic benefits far outweigh
whether it be in photovoltaic or wind farm development – WITH THE that,” she says. There has to be an alignment of what you want to do with the IDC’s
we require that you source the solar panels, mounting That said, there is a lot of dominance and competition. 2industrial development goals. For us, it’s about job creation, localisation,
structures and cabling locally to stimulate the long-term “The retail sector is usually dominated by larger transformation and sector and community development.
demand.” IDC companies, so the barrier to entry could be high, but there
The opportunities, Matshekga says, arise not just from are partnership opportunities. The supplier-development You need to prove the business’ competitiveness and sustainability. You
government and power utility Eskom, but from the private opportunities of the retailers present huge opportunities for black 3must have done some assessment or research to demonstrate your
sector as well. industrialists. The IDC created the first black female industrialist in commitment.
“Most large energy users, such as companies in the mining sector, this sector, so it can be done.”
are trying to diversify their energy source and, as a result, renewable Matshekga has some advice for those wishing to apply for funding from Make sure there is inclusivity – you cannot just put up a plant and ignore
energy is now part and parcel of their mix,” she says. the IDC to get involved in this sector. 4the community in your surroundings.
Matshekga says the IDC believes that these new industries have the “There is huge opportunity, but for us it’s about inclusivity and
potential to create a large number of jobs. transforming the sector. We want the communities on the land these Think wide, but also think narrow. Think of how your business will affect
So what advice does Matshekga have for South Africa’s hot new projects are on to have opportunities to be part of the entire value chain,” 5your surroundings and the community, but also think about how you can
technopreneurs? she says. involve the rest of the continent in terms of inputs upstream and markets
“In new industries, the capital requirements are quite high and it’s “Other opportunities concern import replacements. There are some food downstream.
most often risk capital, because we are still trying to prove a concept. But products that we import, and South Africa has the capacity to produce
when you have partners like the IDC, together with strategic partners, we these.” Think of water and energy usage: where your power and water is going
can collectively develop those projects and make them bankable,” The downsides of agroprocessing include high energy costs and usage. 6to come from; what you would do during shortages.
she says. “Energy is one of the constraints of the poultry industry, for example, and
“Normally, the commercial funders are looking for projects that are we need to be the enabler to unlock these constraints. So, we are looking Identify other internal and external risks, and elaborate on how you will
bankable. As the IDC, we have a high-risk appetite and we come in early; at putting up alternative energy generation for these industries.” 7mitigate those.
we want partners who want to show the same commitment, and develop And, of course, the drought is a huge constraint, and Matshekga and her
these projects and unlock all these opportunities.” team are looking at water as a sector on its own, including the 8 Think jobs – how many will you be able to create?
Matshekga cautions that new industries are expected to have a high risk development of desalination plants, which turn salt water into drinking
of failure – but there is a solution for that. water.
“I think the most important thing is about partnerships. It’s “If we thought electricity was a huge constraint for growth in South You will need a lot of patience. It is not an overnight journey, but I think
important, especially when you are trying to prove a concept that has Africa, water is an even bigger one,” says Matshekga. 9you can take comfort from the fact that you have the IDC and other
worked somewhere else and you are trying to domesticate that in “Since we repositioned ourselves, the IDC took on water as one of those partners who are willing to walk that journey with you. – Nicki Gules
terms of the South African environment. It’s important that you identify sectors that we have proactively striven to develop. We are exploring
partners that have done so and that you seek to form those partnerships,” innovative funding products to look at ways in which we can unlock the
she says. capacity of existing water production.” – Nicki Gules