Parliament, Tuesday, 24 February 2026 – The Portfolio Committee on Trade, Industry and Competition today engaged with the National African Federated Chamber of Commerce and Industry (NAFCOC) regarding its petition for intervention in Industrial Development Corporation’s (IDC) alleged deviation from its mandate and prejudice against black business.
The purpose of the meeting was to afford NAFCOC an opportunity to present its concerns around the impact of the current implementation of the IDC’s developmental financing policies on economic transformation, and for the IDC to respond to these. The committee emphasised that its involvement was governed by the constitutional principle of separation of powers, with one of its main roles being oversight over the executive to ensure accountability.
NAFCOC told the committee that, based on its findings, the IDC has moved away from its core mandate to promote industrialisation, support black industrialists, offer developmental funding and facilitate job creation. Rather, it appeared that it was instituting premature foreclosures when its black clients are in distress, aggressive recoveries without meaningful restructuring and commercial banking-style enforcement resulting in significant job losses and loss of black capital. It highlighted five case studies in the agro-processing, engineering, textile and healthcare equipment industries, which illustrated the impact of the IDC’s alleged practices.
The IDC outlined its mandate, particularly in terms of economic transformation, as well as its approach to client management including recovery of bad debts. It emphasised the need for it to balance industrial development with financial sustainability to ensure that it could continue to offer developmental financing in a sustainable manner.
Following extensive engagements with NAFCOC and the IDC today, the committee emphasised the need for inclusive economic growth to enable transformation, particularly in the productive sectors of the economy.
The committee urged the Department of Trade, Industry and Competition to facilitate further discussions between the IDC, NAFCOC and other affected stakeholders to engage on challenges inhibiting deeper economic transformation and the development of a robust and inclusive manufacturing sector and broader economy.
The Chairperson of the committee, Mr Mzwandile Masina, noted that the committee has previously raised concerns about the misalignment of the IDC’s practices with South Africa’s developmental objectives, as well as that it was not fully utilising its resources to act as a catalyst for inclusive economic growth and job creation.
Furthermore, Mr Masina said, “Based on the seriousness of the allegations, the committee is considering establishing an inquiry regarding the allegations, in terms of National Assembly Rule 227(1)(c). In this regard, the committee will be consulting the parliamentary legal services.”
While the committee cannot resolve these issues directly, our role is to ensure that the department and the IDC, together with industry, resolves these issues. In this regard, the committee will continue to monitor and oversee the work of the IDC in resolving these matters including the establishment of an independent complaints resolution structure to assist stakeholders.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MR MZWANDILE MASINA.
For media enquiries, please contact the committee’s Media Officer:
Name: Mr Mava Lukani
Parliamentary Communication Services
Cell: 081 503 1840
Email: mlukani@parliament.gov.za
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