- IDC and DBSA sign agreement to jointly develop, finance, and implement energy projects in SEZs.
- Collaboration aims to enhance energy resilience, support industrial growth, and accelerate job creation.
- IDC portfolio in SEZs totals R1.9 billion across 22 projects, with focus on automotive and black-owned manufacturers.
The Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA) have signed a Memorandum of Agreement to strengthen collaboration on energy security projects within the country’s Special Economic Zones (SEZs). The partnership will focus on the development, financing, and implementation of energy solutions to ensure reliable, affordable, and low-carbon power for industrial hubs.
SEZs play a key role in driving economic growth by attracting investment and creating employment. Energy security is essential for their competitiveness, enabling industries to operate without disruption. The IDC, through the dtic’s Industrial Zones Programme, recently hosted the inaugural SEZ Energy Security Forum, highlighting the role of SEZs in industrialisation and energy self-reliance while laying the foundation for a broader programme on decarbonisation.
Rian Coetzee, IDC Divisional Executive for Industry Planning and Project Development, said the MOA marks a milestone in fostering a close working relationship between two institutions with strong expertise in socio-economic and industrial development. “We are proud of this partnership with the DBSA, an institution whose objectives align with our mandate. Energy is a key input cost and enabler in manufacturing, and both entities understand the importance of reliable and affordable energy,” he said.
The IDC has a portfolio of R1.9 billion across 22 projects in seven SEZs, including investments in the Coega and Tshwane automotive zones that support black-owned Tier 1 and Tier 2 component manufacturers.
Dr Phindile Masangane, DBSA Group Executive: Programmes, noted that SEZs are critical engines of industrialisation and job creation, but energy constraints have limited their full potential. “Through this collaboration, the DBSA is deploying its full financing and project preparation capabilities to solve that challenge at scale and accelerate energy project development,” she said.
The MOA outlines a framework for collaboration that includes joint identification and origination of energy projects, establishing a structured development pipeline, co-financing project preparation to bankable feasibility, and managing the programme within the dtic’s Industrial Zones Programme Project Management Unit housed at the IDC.
Author: Bryan Groenendaal
