The Industrial Development Corporation (IDC) today announced a strategic co-operation in the field of mineral resources with Korea Resources Corporation (KORES), a government financed institution of the Republic of Korea. The two entities signed a Memorandum of Understanding (MOU), where the main objective is to establish a strategic alliance between the Sides and to identify and carry out cooperative activities on the African continent and the Republic of Korea.

The MOU is valid only for twelve calendar months and is not intended to be a binding contract but instead represents their commitment to realise these objectives.

IDC Chief Executive, Geoffrey Qhena said: “This is the first step in establishing and developing comprehensive long term cooperation between the two organisations. Cooperative activities will include jointly identifying and developing mineral resource projects on the African continent and the Republic of Korea on job creation. The MOU could not have come at a better time when the IDC is joining forces with the country in the drive to increase power generation and also assist the rest of Africa in the maximum exploration of mineral deposits.”

KORES CEO, Shin-Jong, KIM said: “The MOU is aimed at demonstrating our efforts in strengthening and enhancing trade and economic relations through the mining industry by developing various commodities including manganese, chromes and other mineral resources between the Republic of Korea and South Africa which is a  mining centre of Africa. The exchange of information will benefit both the IDC and KORES in joint projects origination in mineral resources in both territories.”

The IDC and KORES have agreed that the cooperation will focus on, although not limited to, joint investment in the exploration and development of mining projects in South Africa and African region and the exchange of information for strategic cooperation of such projects.

The Industrial Development Corporation of South Africa Limited (IDC) has received a EUR 60 million credit line from the European Investment Bank (EIB) to finance private sector small and medium sized enterprises. The funds will support viable projects undertaken by small and medium enterprises businesses in the industrial, resources and services sectors.

The agreement was signed in March 2009.

EIB Vice President Plutarchos Sakellaris, who is responsible for lending operations in South Africa, said: “This loan is a strong signal of the EIB’s commitment to supporting the private sector and encouraging the creation of employment in South Africa. Moreover, the Bank is confident that by working in partnership with the Industrial Development Corporation we can help to stimulate the South African financial markets by diversifying IDC’s funding base and enhancing the provision of finance to SMEs.”
 
Commenting about the loan, Qhena said the line of credit will improve access to funding SMEs in the country.  “This credit could not have come at a more opportune time when the cost of raising funds is extremely high given the market volatility and the liquidity crisis,” Qhena said.

“We are particularly pleased that this loan will further enhance our commitment to development finance and addressing market failures.”

“IDC’s expertise in project evaluation ensures that the EIB funds are directed towards projects which promote economic growth and job creation, as well as being environmentally and socially sustainable.”
 
The IDC’s relationship with the EIB dates back to the mid ‘90s and over the years provided four credit lines totalling about EUR 165 million to IDC for private sector small businesses in South Africa.