In 2015 the IDC reinforced its operations and established the New Industries Strategic Business Unit (SBU) whose primary objective is to identify the most promising new and emerging industry value chains and enabling technologies and to then support and nurture them so that they become globally competitive new industry value chains that facilitate jobs-rich industrialisation and which make a meaningful contribution to South Africa’s economic growth.
By August 2015, six industry value chains and two enabling technologies were prioritized based on their “significance” as determined through an assessment of their financial and developmental return attractiveness and potential competitive advantage. The eight prioritised new industries & enabling technologies are:
Gas beneficiation Focus on the development of the full value chain around a globally unique and competitive SA-developed gas cleaning technology (Klydon Gas) for supply to local & global markets.
Energy storage Focus on the localisation and domestication of energy storage components and complete systems, the local adoption thereof at different scales of application (from consumer through to industrial and utility scale) and ultimately the export thereof. Focus excludes mining / raw material extraction (Basic Metals & Mining SBU domain).
Fuel cells Focus on market creation and stimulation to justify the localisation and domestication of the manufacturing of Fuel Cell components and ultimately complete Fuel Cell systems. Focus excludes application of Fuel Cells to produce and sell energy (Industrial Infrastructure SBU domain)
Medical devices Focus on the localisation and domestication of medical devices developed and/or used / consumed / required on the continent.
Natural Products Focus on the application of SA’s indigenous flora in food ingredients, nutraceuticals, cosmetics and pharmaceuticals, focusing on the full value chain (from growing, harvesting & processing through to new product development, brand-building, marketing, sales and distribution)
Renewable inputs Focus on the localisation and domestication of a variety of renewable inputs, including in the solar (PV & CSP), wind and hydro sectors
Additive manufacturing Focus on the application of 3D printing as an enabling technology across multiple value chains. Focus also on development of new materials in respect of which SA has a competitive advantage
Nanotech Focus on the development and/or application of materials at a nano-scale, thus improving the competiveness of existing value chains or unlocking completely new ones as a result of the unique characteristics of materials at a nano-scale
Of the eight priorities, the following three have been given special priority status based on their above-average game-changing potential:
- Gas beneficiation
- Energy Storage
- Fuel Cells
Based on our assessment, we believe that any one of these industries has the potential to stimulate the establishment of many new sustainable businesses, which could create a significant number of jobs (thousands as a minimum; tens of thousands as a real potential) across the full industry value chains (from raw material through to final product). These new industries will thus make a meaningful contribution to economic growth in South Africa and will further facilitate the achievement of the following developmental outcomes :
- Beneficiation of raw materials
- Localization of manufacturing / import replacement
- Export revenue generation
- Youth entrepreneurship
- Rural community development
- To select (identify, research, filter & prioritise) new industries to be targeted for pro-active development
- To map the industry value chains and formulate industry development strategies (and associated action / implementation plans) for the new industries that have been prioritised for pro-active development
- To lead and direct the implementation of the approved industry development strategies, including the identification and external sourcing and/or ideation and internal origination of investable opportunities within the prioritised new industries
- To review the developmental impact of prioritised new industries by assessing progress against meeting development milestones and the level of achievement of originally targeted outcomes and actual impact on SA
New Industry Selection
- Identifying, researching, filtering and prioritising of new industries (or new sectors / value chains within established industries) to be targeted for proactive development
- Collating research that has already been performed on the new industry candidates
- Performing or sourcing additional research on the new industry candidates
- Studying and analysing research secured from internal and external sources
Industry strategy formulation and execution
- Mapping of new industry value chains
- Formulation of Industry Development strategies and associated action & implementation plans for the prioritised new industries
- For high priority industries, continue to execute industry development initiatives through IDC-established industry development Steering Committees or where such Committees do not yet exist, take the lead in establishing such Committees
- For lower priority industries, actively participate in already-existing forums to influence the goals, objectives, activities and initiatives of such forums (and participating parties) in order to ensure that the IDC’s ultimate industry development goals are achieved
- Execution/implementation of industry development strategies and action plans
- Review developmental impact of prioritised new industries
Policy development / influencing government
- Playing a directive / leading role in the lobbying of key stakeholders at the highest level (especially public sector stakeholders) for the creation of an environment that is conducive to the development of new industries (eg for the design or revision of legislation and regulations and/or for the provision of investment incentives and/or for the establishment of industry-specific infrastructure)
- Building influential and sustainable relationships with relevant policy makers and stakeholders across various parts and levels of government (including regulatory bodies) and the private sector (including industry bodies / associations)
- Influencing policy development to assist unit in achieving strategic objectives
- Garnering support / buy-in from various parts & levels of government and from different levels of authority within each part / level
Strategic partnership development
- Building influential and sustainable relationships with internal stakeholders (Research and Information, Value Chains, Industrial Infrastructure, Corporate Strategy, etc.)
- Leverage external resources towards the achievement of IDC’s development goals for the various new industries and enabling technologies.
- Ensure that the various industry stakeholders remain aligned to and supportive of the IDC’s ultimate industry development goals.
- Work closely with Senior Project Development Managers, Project Development Managers, Senior Deal Makers and Deal Makers.
- Make presentations to industry bodies at events and conferences on IDC’s New Industries objectives and strategies (private sector bodies/players)
Project / application - business development and sourcing
- Provide input/direction to Project Development Managers in the ideation and origination of projects and ensure alignment to new industry development goals.
- Provide direction in relation to internal origination and / or external sourcing of investable opportunities aligned to the units objectives.
- Networking and communicating unit’s strategic industry objectives to potential clients
- Identification & assessment of risks pertaining to new industries development,
- Evaluation of risk management strategies and risk mitigation plans
- Execution of strategies / implementation of plans
- Ensuring that investee companies are contributing to overall industry development goals
- Influencing (through Dealmakers / Project Development Managers) strategic decisions and implementations within investee companies / projects
Knowledge and skills transfer
- Contributing to the improvement of competence and knowledge of development of new industries (and sectors) within the company.
- Coaching of junior staff (across roles)
- Providing guidance, support, advice and on-the-job training