Johannesburg, 30 March 2026 - The Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA) today signed a Memorandum of Agreement (MOA) that will enable two of the country’s biggest development finance institutions to collaborate in the development, financing, and implementation of energy security projects within Special Economic Zones (SEZs).
As key drivers of economic growth, SEZs attract significant investments and in the process contribute to facilitating the creation of employment opportunities. As such, energy security within these zones contributes to competitiveness by ensuring that industries are able to thrive without disruption.
The IDC, through the dtic’s Industrial Zones Programme, recently hosted the inaugural SEZ Energy Security Forum - a landmark gathering which spotlighted the critical role SEZs play in enabling industrialisation and driving energy self‑reliance. The forum set the stage for a bold programme on energy security and decarbonisation of SEZs.
Speaking at the signing ceremony, Rian Coetzee, IDC Divisional Executive for Industry Planning and Project Development said the MOA marked a significant milestone in the establishment of a close working relationship by two entities with strong expertise and technical credentials in advancing socio-economic and industrial development.
“We are proud of this partnership with the DBSA, an institution whose objectives align with our mandate. The IDC and DBSA have a strong track record in socio-economic and industrial development both in South Africa and the rest of the continent. Energy is a key input cost and enabler in manufacturing, and both entities appreciate the significance of reliable and affordable energy.” said Coetzee.
The IDC has a portfolio of R1.9 billion spread across 22 projects in seven SEZs. Notable of these are in the Coega and Tshwane automotive SEZ in which its investment support black-owned Tier 1 and Tier 2 component manufacturers.
“South Africa's Special Economic Zones are critical engines of industrialisation and job creation, yet past energy constraints have held back their full potential. Through this collaboration with the IDC, the DBSA is deploying its full financing and project preparation capabilities to solve that challenge at scale and accelerate the development of energy projects to supply reliable, affordable, low-carbon energy to the zones.,” says Dr Phindile Masangane, DBSA Group Executive: Programmes.
Among other objectives the MOA seeks to:
- Ensure collaboration in the development, financing, and implementation of energy security projects within SEZs, with a view to enhancing energy resilience, promoting industrial development, and supporting sustainable economic growth.
- Jointly identify and originate energy security projects suitable for implementation within the Programme.
- Establish and maintain a structured development project pipeline.
- Co-finance the preparation / project development of projects to bankable feasibility stage and
- Manage the programme within the dtic’s Industrial Zones Programme Project Management Unit (IZP PMU) which is housed at the IDC.
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About DBSA
The Development Bank of Southern Africa is one of the leading development financial institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity.
Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing investments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus includes Education, Housing and Health.
About IDC
The IDC is the leading development funding institution (DFI) in Sub-Sahara Africa providing a wide range of funding products. The Industrial Development Corporation (IDC) of South Africa Limited was established in 1940 through an Act of Parliament (Industrial Development Corporation Act, 22 of 1940) and is fully owned by the South African Government.
IDC priorities are aligned with the national policy direction as set out in the National Development Plan (NDP), Industrial Policy Action Plan (IPAP) and industry Master plans. Our mandate is to maximise our development impact through job-rich industrialisation, while contributing to an inclusive economy by, among others, funding black-owned and -empowered companies, black industrialists, women and youth-owned and -empowered enterprises. At the same time, the IDC must ensure its long-term sustainability.