Disbursement of funds by the Industrial Development Corporation might decline if the economy remained in recession for a protracted period, CEO Geoffrey Qhena said this week. The state-owned development finance institution bankrolled fewer projects over the past year, it revealed in its annual results presentation this week, as total funding disbursed declined by 3% to R11-billion. "It's evidence that some projects are not happening as quickly as we thought," Qhena said. He told Business Times in an interview on Wednesday: "If we stay in recession longer, it is fair to assume that the disbursement level will be hard to meet. "We need to ensure that we really apply our minds [to what we fund]. The state of the economy will impact on that." He said the IDC was not in favour of disbursing funds for the sake of meeting its disbursement targets, only to discover that companies it had funded did not have a market to sustain them. "Then the company is not going to perform." Similarly, the ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now