Women in Mining Dialogue - Lebogang Motsepe Senior Dealmaker - Mining & Metals SBU
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Women in Mining Dialogue Lebogang Motsepe Senior Dealmaker – Mining & Metals SBU lebogangmot@idc.co.za 26 August 2021
IDC at a glance
o Established: 1940
o Type of organisation: Development Finance Institution (DFI)
o Ownership: State owned company, 100% owned by the SA government
o Funding status: Fund operations and growth from investments, pay
dividends and income tax
o Main business area: Providing funding for entrepreneurs and
projects contributing to industrialisation
o Geographic activities: South Africa and the rest of Africa
o Products: Custom financial products above R1m to suit project’s needs
including debt, equity, guarantees or a combination of these
o Small and Micro enterprise coverage: SEFA & NEF (fully owned
subsidiary) - promote increased broad-based black economic empowerment,
with a specific focus on promoting black industrialists
o Stage of investment: Project identification and development, feasibility,
commercialisation, expansion, modernisation
2
What we aim to achieve
IDC’s OBJECTIVE - LEAD INDUSTRIAL CAPACITY DEVELOPMENT
DEVELOPMENT OUTCOMES
Primary:
• Facilitate sustainable direct and indirect employment
Secondary:
• Improving regional equity, including the development of South African
rural areas, poorer provinces and industrialisation in the rest of Africa
• Promoting entrepreneurial development and growing the SME sector
• Transformational impact on communities and growing black
industrialists
• Environmentally sustainable growth
• Growing sectoral diversity and increased localisation of production
• Partnerships
VALUES • Professionalism
• Passion
3
Our financial product offering
IDC source of Application of Targeted
Funding IDC Products Funds Businesses
• Project development
• Feasibility funding
• IDC on-balance sheet • Project implementation
• Senior debt • Plant & equipment
funding
• Start-up / greenfields
• Quasi-equity • Working capital
• Special Schemes
• Expansions /
• Equity • Bridging finance
• Off-balance sheet funds brownfields
• Guarantees • Expansionary
managed by IDC
• … in South Africa & Rest
acquisitions
of Africa
Summary of IDC’s Main Activities
• provision of industrial finance to businesses throughout the business lifecycle in various sectors aligned
with industrial policy priorities as well as developing projects in these industries.
• involvement in other activities such as research, policy inputs and fund management for government
departments; non-financial support for business.
4
Funds currently available for
structuring transactions
Fund Criteria
Gro-E Youth - Shareholding should be at least 26%
Target - Youth - Operational involvement in the business
- Minimum of R1 million and Maximum of R50 million per transaction
Youth Pipeline Development Programme - Pre-approval: Up to 6% of potential investment amount up to a maximum of R500k
Target – Youth - Post approval: Up to 40% of the investment amount or a maximum of R1.5 million
Improve readiness of potential applicants
MCEP - Only available for working capital requirements
Target - manufacturing companies - Available to start-ups and expansions
- Limited to R30 million per applicant
UIF 2 - Demonstrate compliance with the UIF regulations
Target - sustainable job creation and retention - 0.8 jobs per R 1 000 000 or create at least 100 jobs
DSICF Maximum of R75 million per transaction
Target - struggling steel industry and any other steel-intensive
business
Other
SSMF - IDC and the DMRE have shared adjudication guidelines
Target: Small Scale Mining - DMR&E Fund - IDC implements payment/ring-fencing on instructions received
from DMR&E
Covid-19 Distress Fund https://www.idc.co.za/
Target: any viable small industrial business with strong business
fundamentals that finds itself momentarily in distress as a result of
the Covid-19 pandemic
Unrest Business Recovery Fund https://www.idc.co.za/
Target: funding support for businesses and communities affected by
the unrest
5The IDC Women Portfolio
The below tables depict the performance of the portfolio in the last 5 years.
2015 / 2016 / 2017 / 2018 / 2019 /
R ’millions 2016 2017 2018 2019 2020
Total • Women have been a key focus group of IDC’s
Approvals
14 449 15 314 16 709 12 973 11 726 68 546
developmental agenda for several years. Over the 5-year
Disbursements
11 365 10 974 15 355 11 815 11 714 139 331
Women-empowered
period to 2019/2020, the IDC injected a cumulative amount
35 46 53 50 22 219
deals
Women-empowered
1 156 3 230 2 174 2 972 2 173 11 188
of R11.7 billion into women-owned and empowered
approvals amount
Jobs created / saved by businesses, with more than 90% of these investments
Women-empowered 2 348 2 107 9 498 2 814 786 17 170
clients
Women-empowered
having been directed to black women businesses.
854 935 1 398 977 1 297 5 949
Disbursements
Jobs created / saved
15 272 20 571 29 885 19 178 12 028 93 490 • The IDC’s loan book indicates an increasing shift by women
BI Women-empowered
1 095 2 902 1 649 2 736 2 318 10 041
entrepreneurs towards owning larger businesses, as
Women-empowered and
113 1 020 580 762 412 2 219
Youth-empowered
reflected by the significant rise in the proportion of women
2015 / 2016 / 2017 / 2018 / 2019 /
Application of Finance Total
2016 2017 2018 2019 2020
deals that are over R5 million. The average transaction size
Distressed Business 1 793 2 022 2 132 2 464 (313) 8 097
has been increasing steadily to about R35 million.
Expansion 8 715 6 037 6 606 6 120 4 488 33 844
Expansionary Ownership
522 226 1 146 264 234 1 934
change
Feasibility/Project Dev In terms of trends in the IDC’s mandated sectors, mining projects
137 287 282 157 231 1 050
costs dominate in value terms due to the generally high capital
Ownership change 1 042 1 562 1 321 409 1 465 4 224 investment requirements of mining operations. However, the sector
Start-up 2 237 5 167 5 228 3 561 5 621 19 384 has not historically dominated in the number of women applications
Wind-up 4 13 (5) 12
received.
6Key initiatives: Mining & Metals
Themes Relevant Commodities / Products / Groups
1. Energy Transition (focus on minerals for hydrogen • PGMs, Copper, Vanadium, Manganese, Nickel, Cobalt, Lithium. Fluorite, etc. (a.k.a.
energy, energy storage and battery manufacturing for battery minerals)
electric vehicles (EVs)
2. Industrial Capacity Growth (incl. of localisation, SEZ & • Beneficiation (Chrome & Zinc)
AFCFTA)
• Key minerals are iron ore, chrome, manganese, coking coal and anthracite coal.
• Products for energy, gas & infrastructure projects
• Products into mining equipment & automotive value chains
3. Decarbonisation (incl. circular economy) • Utilisation of renewable energy (captive power plants)
• Developing “Green” Steel opportunities
• Re-processing of Tailings & utilisation of fines
4. Improved productivity / competitiveness & mine safety • Implementation of 4IR
7Potential areas of collaboration
Alignment with Stakeholders is critical to ensure best outcome for
South Africa
1. Project identification & prioritisation
2. Development of co-investment models
3. Information sharing / monitoring
4. Infrastructure investment opportunities
5. Development of new technologies
6. Identification of other value chain opportunities
8Thank you Lebogang Motsepe Senior Dealmaker – Mining & Metals SBU lebogangmot@idc.co.za https://www.idc.co.za/
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