State-owned development finance institution the Industrial Development Corporation (IDC) would allocate R25-billion to investments in the ‘green’ economy over the next five years, Economic Development Minister Ebrahim Patel said on Tuesday.

Finance Minister Pravin Gordhan is expected to announce further financial commitments in next week’s Budget, to promote opportunities in this sector.

The green economy forms part of the key sectors identified in the New Growth Path as having the potential to unlock employment opportunities. The economic plan aims to grow employment by five-million jobs by 2020, 30 000 of which could be delivered by the green economy.

Patel highlighted the installation of solar water geysers in new low-cost houses as one of the “immediate successes” in the green economy. Some 25 000 units had been installed to date through a partnership that included the IDC.

“With a further 170 000 units planned, this project will contribute to employment creation, as well as strengthen the local manufacture of components, as we intend to improve the sourcing of components to at least 85% local content shortly,” Patel noted.

He further stated that government was finalising a beneficiation strategy to incentivise the greater processing of minerals locally to final consumer or capital goods production, as part of the approach to create more decent work opportunities. Some of the key value chains include iron-ore, coal and platinum.

“We are working on a project to set up the world’s first integrated metals plant beneficiating titanium, zirconium, vanadium, magnesium and silicon, which will involve a R15-billion investment and can create more than 7 000 jobs in construction, as well as the operation of the plant,” Patel said.