Deliberations . IDC's role as developmental financier: According to the CEO, the outcomes which the IDC envisages in its interventions will result in sustainable employment, regional equity, industrialization in the rest of Africa, environmentally sustainable growth, growing sectoral diversity, growth in the SME sector, BBBEE and new entrepreneurs entering the economy. Developmental finance talks to the level of risks taken, and because the IDC enters into ventures at an early stage, its risk is higher than an ordinary financial institution. Once the IDC is of the opinion that a project will be sustainable, collateral is secondary. Sustainability is crucial. . IDC's role in Public-Private Partnerships: The IDC is involved in general infrastructure in South Africa and Africa. Its biggest exposure is with independent power producers, while it also provides funding for a wind farming project in Kenya and for hydro-electricity generation in the rest of Africa, in partnership with the Development Bank of Southern Africa. . The manufacturing of 100% local content automotive components: Members raised concern that it is assumed that automotive components are 100% locally manufactured, but in fact many are imported as raw materials and assembled or moulded locally, which provides little or no downstream beneficiation. The IDC acknowledged that not many components are manufactured locally. The IDC's plan is to identify which components could be made locally, and then support those manufacturers. . Technology used in Kenya on the wind power generation project: The IDC has invested R800m and the technology being used is very advanced, it is envisaged that it can be used in South Africa. . Sources of funding of the IDC: According to the IDC they do not receive any funding from either the World Bank or the IMF, but through other DFIs. The IDC noted that they continually make a conscious effort to find cheaper sources of funding, so that the benefit can be passed on. . Status of the IDC Board: Mr Qhena stated that the previous chairperson's term of office ended in October 2009. The Minister appoints the Chairperson of the Board. The IDC assured members that the board in the meantime is fully functional. . Youth vis a viz franchising: The IDC acknowledged that franchising is very difficult and that black South Africans found it very difficult to enter. The IDC has allocated 75% of its franchise support budget to black entrepreneurs, where there were some successes and some failures. The IDC will however continue to support this programme, but noted that other institutions like Khula must take it forward. . Update on the ArcellorMittal and Kumba dispute: Mr Qhena noted that the IDC as a shareholder in ArcellorMittal, is aware from media reports of transactions that had been supported, but up until these issues have not been voted upon, it could not comment. The IDC has 14,4% in Kumba and a 7,9% in ArcellorMittal. . IDC's role in bio-fuels: Mr Qhena indicated that the IDC will not get involved with anything that is food related, e.g. maize, which jeopardizes food security. . Uncompetitive textile and footwear industry: According to the IDC the problem lies beyond raw materials costs. In many instances the production equipment is outdated and the IDC is working with the DTI to make funds available for the modernization of equipment and the improvement in output. Mr Qhena also highlighted that niche markets also need to be developed. . Wholesale funding by the IDC: Members of the committee enquired if the wholesale funding via intermediaries by the IDC should not be handled by Khula? The IDC indicated their wholesale funding is very targeted and that the IDC do not compete with Khula, nor with the Land Bank in the agricultural sector. . Township and rural hospital scheme: according to the IDC, the scheme is earmarked for the private sector, and its aim is to take the pressure of the public hospitals. Because they are "small bed" facilities, no major players are involved. . Support to municipalities: the IDC assists in the establishment of development agencies which, in the long run, are taken over by the local governments (municipalities). According to the IDC experience has shown that local governments often has land and funds, but lacked the capacity to determine what projects must be embarked on. The IDC also targets poorer municipalities in order to assist in their development projects. . Outreach of the IDC: According to the IDC their approach has always been not to duplicate facilities. Where there are for example Khula or a Small Enterprise Development Agency (SEDA), it will only be cost effective to share, where it also brought them into contact with aspiring entrepreneurs. . Lack of monitoring: Members of the committee noted that during the oversight visit to companies in distress it was found that there is little monitoring from the IDC. The CEO noted that the IDC was suppose to follow-up on all approved projects, and urged members to assist the IDC to fulfill this role by reporting on instances where monitoring is not taking place. The CEO indicated that he will make a follow-up on these. . Indentifying indigenous crops which could be grown to support development in the rural areas: The IDC highlighted that they do not ignore indigenous crops, but the basic principle is to decide what worked best in a particular area, and to focus attention to ensure plans are developed and capitalize on these. For example, the Western Cape and Eastern Cape considered best for solar and wind projects, table grapes in the Northern Cape etc. So the issue is what will work best in a particular area or province.