The Industrial Development Corporation (IDC) has committed R25 billion to new investments in the green economy over the next five years.
The announcement was made by Economic Development Minister Ebrahim Patel on Tuesday in Parliament.
Addressing the National Assembly, Patel said that next week, Finance Minister Pravin Gordhan will announce further financial commitments that will be made in the Budget to promote opportunities in this sector.
“We have started with installation of solar water geysers in new low-cost houses and to date, have 25 000 units installed through a partnership that includes the IDC,” said Patel.
“With a further 170 000 units planned, this project will contribute to employment creation as well as strengthening the local manufacture of components as we intend to improve the sourcing of components to at least 85% local content shortly.”
Furthermore, Patel said the New Growth Path will grow the economy by boosting infrastructure spend on various projects, vamping up the agro-processing and farming sectors, and taking advantage of trillions of spend on the African continent – all in an effort to create more jobs.
In addition, the IDC will make available R5 billion in funding over the next five years to the agro-processing sector.
The development finance institution has also been asked to review its loans application procedures – namely, the time it takes to grant finance to entrepreneurs and the cost of finance.
Government is also working on a one-of-a-kind project, which could result in thousands of jobs.
“We are working on a project to set up the world’s first integrated metals plant beneficiating titanium, zirconium, vanadium, magnesium and silicone. If it is confirmed through the feasibility study being undertaken, it will involve a R15 billion investment and can create more than 7 000 jobs in construction as well as the operation of the plant,” said Minister Patel.
Patel’s department would also look at cutting red tape and supporting businesses in the informal economy, by among other things, merging the Small Enterprise Development Agency (Seda) – which supplies business support to entrepreneurs – with small business funding agencies to form a single entity to assist small businesses.
A new direct small business funding programme would be rolled out, with details to be announced next week, Patel said.
Also speaking in the National Assembly today, the DA’s Athol Trollip said the party welcomed the R9 billion jobs fund, as well as the R20 billion in tax breaks to incentivise investment in the manufacturing sector, announced by President Jacob Zuma in the State of Nation Address last week.
Trollip, however, said similar tax breaks should be extended to small and medium-sized enterprises.
He pointed out that former president Thabo Mbeki made various commitments to supporting small businesses in the 2006 State of the Nation address – commitments which were brought up by Zuma in his State of the Nation Address last week.
Trollip said he hoped the New Growth Path will be adapted to the National Planning Commission’s findings on how to alleviate poverty and create viable economic opportunities for South Africans.
He called on the President to also develop new innovative solutions, green industries, and take action against global warming
Congress of the People leader Mosiuoa Lekota said it was “exciting” to hear of the billions set aside by the government to promote job creation, but he was concerned that President Jacob Zuma did not provide “practical steps” on how these amounts would be used.
Lekota said the rise of tenderpreneurs was a “tragedy” for South Africa: “Job creation is a function of entrepreneurship. There have been tenderpreneurs created, not entrepreneurs.”
He said more effort needed to be taken in educating competent business owners on how to get tenders.
Lekota said while civil servants would always be safe with monthly salaries, business owners had to win contracts to put food on the table.
He said there were lessons to be learned from other countries – such as Japan – which achieved economic growth through technological innovation following the destruction of that country after World War Two.
Inkatha Freedom Party leader Mangosuthu Buthulezi said the country needed to become serious about tackling job creation, with a partnership between political parties. – BuaNews
Alan Straton
Latest posts by Alan Straton (see all)
- TrueTech Readies South African Homes and Offices for a Year-End Tech Upgrade - 2 November 2026
- Now I Understand Why Investing Is Not for the Faint of Heart - 2 November 2026
- LED-Lightbox Rental in Midrand Delivers, Sets up and Collects Light-up Letters, Numbers and Neon-Style Signs for Gauteng Weddings and Year-End Functions - 2 November 2026
- Record Numbers Walk in Step With Those Affected by Cancer - 2 November 2026
- The Carpet Stain Remover That Leaves a Bigger Problem - 2 November 2026
This is interesting. How is a metals beneficiation plant green? I’m a chemical engineer and I have tried to get industry in SA involved in ‘viable green’ projects. I found that most decision makers in SA have no clue what they are talking about and hardly understand the chemical and energy concepts you expalian to them. They aslo hardly make an effort becasue as long as they can go on 4×4 trips, take off the whole of April, December, January and most of June/July for hunting trips with their kids etc. they are fine and all the energy problems will sort themselves out….. The ignorance level in this country is too high and people are too lazy to make that R25 billion work. As long as that R50000-R100000 per month rolls in they will worry about tomorrow’s problems…. tomorrow. We need well experienced chemical/mechanical engineers in positions as high as Ebrahim Patel in order for them to understand what green actually means. Thus far, I’ve seen the Scandanavian countries, Australia and most central European countries are moving in the right direction because the average work ethic and competence are in place. I challenge top finance and politicians to employ a well experienced engineer in a very high position to make decision on how that money gets spent…..