Here’s how much the IDC disbursed in business support in the last financial year
· Citizen
The Department of Trade, Industry and Competition has denied that its key development arm prefers supporting established businesses over start-ups.
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The Industrial Development Corporation (IDC) was earlier this year accused of favouring large corporations and ignoring its transformation objectives.
The IDC was accused of declining start-up funding applications in favour of corporate assistance, as well as not filtering funds down to small businesses.
55% black-owned IDC partners
A portfolio committee meeting in February asked DTIC and the IDC to address accusations that it was sidelining small businesses.
In a recent response to a written parliamentary question, the department confirmed that it had not reviewed funding decisions, but was in discussions with the IDC over claims that black-owned businesses were being denied funding.
However, one corrective measure the IDC board had taken since earlier this year was the establishment of an independent complaints panel.
“Matters raised at the portfolio committee have been referred to the panel for independent review and consideration,” DTIC stated.
The department elaborated on the demographic split of IDC business partners’ ownership.
“As of 31 March 2026, black-owned businesses accounted for 374 of the IDC’s 683 business partners – 55% – and represented approximately R37.3 billion in exposure and undrawn facilities.
“By comparison, majority white-owned businesses accounted for 59 business partners – 9% – and approximately R5.4 billion in exposure and undrawn facilities,” the department stated.
“The remainder of the companies supported by the corporation are listed entities, subsidiaries and foreign-owned companies.
“The IDC’s portfolio is, therefore, substantially weighted towards transformed ownership categories and support for black-owned enterprises,” DTIC’s response stated.
R17 billion disbursed in 2025-26
The IDC’s annual report for the last financial year showed it disbursed R17 billion in funding, with R1.3 billion going to SMEs and R3.9 billion going to start-ups.
The IDC’s mandate is to support transformation and the growth of emerging enterprises in targeted sectors.
These include, among others, renewable energy, green transportation, digital infrastructure, manufacturing and agro-processing.
“Funding decisions are not based on proof of large-scale commercial success, but on an assessment of developmental impact, commercial viability, job creation potential, transformation objectives and long-term sustainability,” the department stated.
The department said the IDC’s investment in start-ups did not support the assertion that it favoured established businesses.
“In financial year 2026, the IDC approved 22 new start-up transactions worth R2.9 billion, with an anticipated 5 555 jobs to be created.
“The IDC continues to support enterprises across the business lifecycle, including start-ups, expansionary investments, working capital funding and distressed businesses where there is a developmental rationale,” the department stated.
Successful projects include a rare earth minerals beneficiation project in the Northern Cape, a national new energy vehicle programme and renewable energy projects that feed industrial users.
The department also highlighted green hydrogen infrastructure hubs in Richards Bay, Coega, Saldanha Bay and Boegoebaai.
The IDC’s recent annual report showed the group had total assets of R154 billion but posted an after-tax loss of R4.7 billion.
Additionally, the IDC had a debt-to-equity percentage of 30.9% and a non-performing loans percentage of 35.1%.