Ithala Development Finance Corporation, KwaZulu Natal's development agency, invested almost R300-million in socio-economic development in the province last year.
Releasing details of the corporation's 2002/
2003 financial results, Ithala chief executive Sipho Nyembezi said: "In a year of controlled growth after a period of consolidation, our capital investment programme, comprising projects and advances, amounted to R296,2-million, while our net income for the year increased by 10,4% to R14,8-million when compared against the previous year. This is most encouraging."
The resumption of Ithala's growth impetus was reflected by a modest increase of R17-million in its net advances to R1,3-billion.
The company's total assets also grew by 4,8% to close on R2,6-billion.
"It remains the objective of our board and management to carefully manage asset growth and to focus on improving income-generating avenues from sources other than those necessitating a growth in assets. We expect that substantial increases in non-interest income will be achieved in the years ahead," Nyembezi said.
Ithala, an organisation that ploughs generated net income back into its economic-upliftment activities, is active across the province's development spectrum.
It facilitates entrepreneurial development, employment creation, funding of business enterprises, provision of business premises, commercial shopping centres and tourism facilities, as well as providing insurance, savings facilities for the unbanked and loans for particularly, but not only, low-income home owners.
"Our primary responsibility is to create a significant development impact in KwaZulu Natal through the delivery of products and services designed to improve the quality of life of more people of this province," he said.
Their 2002/2003 development outreach programme saw Ithala assist 557 new business
enterprises, facilitate the creation of 4 967 job opportunities and finance 2 379 hectares of farming land. In addition, 173 875 new savings accounts were opened and 3 317 new home owners assisted with bond and home-improvement finance.
Almost 100% of the small-business entrepreneurs funded by Ithala in 2002/2003 were historically disadvantaged individuals, while 41,5% of loans granted to medium-sized businesses were owned by historically disadvantaged entrepreneurs, compared against just 25,2% the previous year.
Publisher: The Star
Source: The Star
