Projects and Partnerships
post COVID

SADC DFRC - AFRECO: Webinar
29 October 2020

IDC’s role in industrial development
New Development /Business Start Up

Rapid Growth

Maturity

Decline / Rebirth*CompanyLife Cycle

Media and Audi

Tourism andServices

Agri and Agro
Processing

Textiles andWood

Chemicals

Automotive

Continental

Capacity expansion / new productlines
Business rescue / liquidation

Steady state operations

Machinery

Small Business

Mining

SBUs

Transaction implementation
Project ramp up

EnergyProjects

New business
New projectNew
innovation

Infrastructure

CurrentBusiness
Activities

Feasibilitystudies
Early stage
development
Exploration

Industry planning and Project Development a key focus in driving
industrial development
Project DevelopmentPlanning‒

Proactive industry development focus‒

Actively working with SA Government on Master Plans‒

Development of regional value chains‒

Enhance capacity and expertise to develop
projects‒

Long-term impact rather than short-termgoals:‒‒

Substantial proactive involvement inprogressing through project lifecycle(scoping, pre-feasibility, feasibility andimplementation)‒

Developed internally or with a partner/s‒

IDC can become involved at any stageof the development phase

Projects should have a significant impact on:‒Sector development‒

Developing infant industries‒

Building IDC’s balance sheet‒

Linking value chains

3

Systematic planning and integration of business priorities to achieve
regional development impact
Immediate Interventions-Mining investments
Renewable energy investments (including BEE and communitytrusts)
Masterplans (steel and agro-processing)
Scope green hydrogen economy opportunities
SME Connect: Black Mountain Mine and Assmang pilot
Industrial park development (e.g. Namakwa SEZ)
Partnership engagement with Impact Catalyst (Anglo, Exxaro,Aurecon, CSIR and World Vision development consortium)

Key national /regional routes
connecting
region withmajor nationalmarkets

Proposed
Namakwa
SEZ

Medium to long term interventions-Integrated mining, agricultural and infrastructure developments
Co-ordinated regional enterprise and supplier development
programmes (across value chains)
Localisation and beneficiation opportunities
Regional integrated specialist sector development zones
Create hydrogen economy - diversify SA fuel dependence and export
capacity

Existing
IDC
Activities

Horticulture (grapes)

Green Energy : Solar

Existing IDC Activities

MiningGreen Energy : WindEnergy - solid growth anticipated
Background
Global: Energy demand
continues to grow

Opportunity
Solid & growing pipeline of impactful projects/deals
Proactive engagement with NERSA , DMRE & IPP Office to influence outcomes such as
the regulatory framework, local content and transformation of the sector.

SA biggest electricity
contributor in SADC
- under-performing- high coal dependence
Transition to renewableenergyDe-carbonization of theeconomy

Focus on full value chain development in collaboration to maximise local beneficiationand value-addition• Development of energy storage (battery) value chains• Beneficiation opportunities• Support projects aiming to develop domestic gas resources
Catalyse adoption of cleaner energy generation/efficiency technologies across sectors /industries for cost reduction, efficiency improvement and profitability

IRP delays negatively
impacted value chain
historically

5SME development

A phased approach to create sustained impact
FOCUS

Small Business SBU:In Pilot:

End StateCustomerSME

SME in Corporate Value Chain

SMEs across Corporate Value Chains

Offering

Simple productProduct and Support

Digital access to tools and sharedprocurement

AimIncrease market share

Dominate market space with partners

Prosperity of ecosystem

Horizon

Short term growth

Short term impact

Multi-generational sustainable successMarket Research

Identify industrial finance gap in market

Identify supply chain opportunity inmarket

Empower through access – whatever,wherever, wheneverFinancial / Development Balance

Price for risk, subsidy for distressedclients able to recover from COVID

Price for risk – risk mitigated by
Corporate partner off take / non-financial
support

Identify, manage and mitigate risk withtechnology and partners, scaling portfolio
and impact

Implementation Example

COVID19 Small Industrial FinanceDistressed FundAssmang Enterprise Development
Namakwa SEZ and Black Mountain Mine

Thank you7