The Industrial Development Corporation (IDC) is attempting a significant reset of its funding model and internal operations as complaints from small businesses over delays, poor communication and limited access continue to surface.
The government says the changes are necessary to reposition the institution for a low-growth economy, but the success of the shift will depend on whether long-standing bottlenecks are resolved.
Minister of Trade, Industry and Competition Parks Tau said the IDC is evolving from a traditional lender into a broader industrial finance platform aimed at mobilising capital, partnerships and technical capability across key sectors.
The move is intended to unlock investment in areas such as energy, manufacturing and digital infrastructure while extending support to small and medium-sized enterprises (SMEs).
However, the repositioning comes at a time when the institution is under pressure to improve its responsiveness to businesses. Entrepreneurs have repeatedly raised concerns about slow turnaround times, opaque decision-making processes and inconsistent communication, all of which can stall investment plans and strain already fragile cash flows.
The IDC’s leadership has acknowledged these challenges, signalling that operational reform will be as critical as strategic change in determining whether the institution can meet its developmental mandate.
Governance reset and complaints under scrutiny
IDC chairperson Gloria Serobe said the board is prioritising governance, oversight and operational discipline as part of a broader effort to restore confidence in the institution. She said the board is actively reviewing strategy and holding management accountable for execution, particularly in areas affecting client experience.
Serobe acknowledged that concerns around delays, responsiveness and process fairness are being taken seriously, noting that weaknesses in communication and complaints handling must be addressed. As part of this effort, the IDC is establishing an independent complaints review panel to provide businesses with a formal channel to escalate process-related concerns.
“The purpose is to ensure that concerns are tested through proper governance processes and that improvements are measurable,” she said, adding that the board would be judged on the outcomes of these interventions.
The governance reset is also linked to a broader strategy review, with the IDC seeking to balance its traditional role in supporting established industries with a more aggressive push into new growth sectors. These include green industries, critical minerals, digital infrastructure and advanced manufacturing, all of which are expected to drive future industrial expansion.
SMEs weigh opportunity against execution risk
The shift presents both opportunity and uncertainty for SMEs. The IDC’s move toward a partnership-driven model, including blended finance and co-investment structures, could expand access to capital by leveraging private sector participation.
At the same time, businesses worry that additional layers in the funding process could complicate access rather than simplify it.
Siyabonga Ndlovu, founder of agro-processing company Imbewu Harvest Co said delayed funding decisions have real consequences for small firms trying to scale.
“When approvals take too long, you lose suppliers, you lose contracts and sometimes you lose the entire opportunity. For SMEs, timing is everything,” he said.
Karabo Mothapo, owner of Mothapo Industrial Logistics, said clearer communication would significantly improve the experience for business owners navigating funding processes.
“Even if funding takes time, businesses need transparency. Not knowing where your application stands makes it difficult to plan and manage cash flow,” she said.
The IDC has indicated that improving turnaround times, strengthening internal coordination and accelerating digitisation are key priorities. These changes are intended to ensure that governance processes support efficiency rather than slow down delivery.
