*** In the Photo: Kate Phillip ***
By Neo Mogodi
The Industrial Development Corporation (IDC), as part of Presidential Employment Stimulus, is accelerating its drive for social employment as part of its portfolio of interventions to create jobs and support livelihoods. The Social Employment Fund, launched through the Presidential Employment Stimulus, is contributing to sustainable job creation through the facilitation of 50 000 new work opportunities which were delivered during its first phase.
The Department of Trade, Industry and Competition has established a Social Employment Fund, with the IDC as the fund manager. To date, a total amount of R800 million was invested through 28 Strategic Implementing Partners, contracted to deliver on the creation of 50,000 temporary work opportunities.
Speaking during the Presidential Budget Vote, President Cyril Ramaphosa said: “The Stimulus created nearly 650,000 work and livelihood opportunities in the past financial year. These opportunities were created in areas as diverse as basic education, small scale farming, and arts and culture. Of the people involved in the programme, 83 per cent are youth. This brings the total number of participants in the Presidential Employment Stimulus since its launch in 2020 to over 1.2 million people,” the President said.
Dr Kate Phillip, the Programme Lead on the Presidential Employment Stimulus says that no less than 80% of the funds received needs to be spent on wages. “This ensures that the work supported by the fund is labour intensive, provides meaningful experience and delivers real social value. Social employment is not about work alone, but about creating high-quality assets and services for communities.”
In terms of the criteria for Strategic Implementing Partners, Phillip says: “firstly, you must be an organisation involved in work that serves the common good and have a solid track record of community-based work.Over and above other institutional criteria, the organisations must demonstrate capacity to employ at least 1000 participants at an average of 66 days per ordinary participant for the 9-month duration of the Programme. Applicants will have up to 3-months to ramp-up their participant numbers to the maximum intended.”
The fund is providing other benefits – including work experience and skills – which can improve a person’s chances of being employed, becoming self-employed or starting their own business. The Social Implementing Partners offer a range of service: anything that represents work for the common good, placemaking, health and care, safety and GBV, food security, education, communications and the art.
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About the IDC
The Industrial Development Corporation (IDC) of South Africa Limited was established in 1940 through an Act of Parliament (Industrial Development Corporation Act, 22 of 1940) and is fully owned by the South African Government. IDC priorities are aligned with the national policy direction as set out in the National Development Plan (NDP), Industrial Policy Action Plan (IPAP) and industry Master Plans. Our mandate is to maximise our development impact through job-rich industrialisation, while contributing to an inclusive economy by, among others, funding black-owned and empowered companies, black industrialists, women, and youth-owned and empowered enterprises.
Simultaneously, the IDC must ensure its long-term sustainability through prudent financial and human resource management, safeguard the natural environment, and increasingly position itself as a Centre of Excellence for development finance. In addition, IDC funding promotes regional development and integration, economic empowerment of communities and growing black industrialists. The IDC remains committed to promoting environmentally sustainable growth and increasing sectoral diversity to boost the local production of goods. It also plays a critical role through its subsidiary, the Small Enterprise Finance Agency (Sefa), in promoting entrepreneurial development and growing the SME sector.
The IDC has contributed to the implementation of South Africa’s industrial policy for more than 80 years and established, among others, the Petro-chemicals, and minerals beneficiation industries. We have stimulated large industrial projects in these industries – acknowledged today as the cornerstones of the country’s manufacturing sector – and influenced the establishment of industries in fabricated metals, agriculture and clothing and textiles. During the 1990s, our mandate was expanded to include investment in the rest of Africa. Currently, our investments in Africa include mining, agriculture, manufacturing, tourism, and telecommunications. The IDC’s funding is generated through income from loan and equity investments and exits from mature investments and borrowings from commercial banks, development finance institutions (DFIs), and other lenders. We align our priorities with government’s policy direction and remain committed to developing the country’s industrial capacity and playing a major role in facilitating job creation through industrialisation.
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For more information, please contact Neo Mogodi at the Industrial Development Corporation on NeoMo@idc.co.za