Mining rights and Foskor accounting errors prompted prior-year corrections, while the development financier reported another sharp earnings reversal.
The Industrial Development Corporation (IDC) reported a significant loss of R4.65 billion for the financial year ended March 2026, a sharp reversal from profits of R329 million in 2025 and R7.5 billion in 2024.
It reported revenue of R15.8 billion and an operating profit of R384 million. However, a R1.8 billion loss from companies in which it holds minority stakes, together with R3.1 billion in tax, pushed it into an overall loss.
The group reported that it had disbursed about R17 billion in investments and mobilised a further R28 billion from co-funders and investment partners. These investments are expected to create 71 228 jobs.
“Despite the economic headwinds, the IDC funding model remains resilient. We improved our company debt-to-equity ratio to 47.7% and reduced non-performing loans to 35.1%, strengthening our ability to support industrial development, investment mobilisation, job creation and economic transformation,” said Isaac Malevu, the IDC’s chief financial officer.
Established in 1940, the IDC is a state-owned national development finance institution aimed at promoting economic growth and industrialisation. Despite its governmental ownership, the IDC operates as a largely self-financing entity, focusing on boosting industrial capacity, creating jobs, and driving economic transformation. While the majority of its investments are concentrated in South Africa, the IDC also invests in other parts of Africa.
The corporation finances a diverse range of industries, including agriculture, mining, tourism, energy, and manufacturing.
During the preparation of its 2026 financial statements, the IDC identified accounting errors that required the restatement of its 2025 results.
One related to the mining rights held by Adelaide Ruiters Mining and Exploration. These had previously been valued at R10.9 billion for the year ended 28 February 2024 but were subsequently reassessed at R438 million following a detailed feasibility study. The revaluation resulted in a R2.6 billion impairment attributable to the IDC’s 25% stake.
A separate consolidation error was identified at mining and fertiliser producer Foskor, where R3.2 billion in preference shares had not been properly accounted for. This resulted in investment securities and retained income each being understated by R3.2 billion in previous periods. The error has since been corrected.
This article was republished from Moneyweb. Read the original here.
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