By Ncaba Ntshakala
The Industrial Development Company of Eswatini (IDCE) has announced a significant distribution of funds to its shareholders, totalling E25,857,044.54.
The presentation was held at Happy Valley Hotel on Wednesday morning.
The company has not been able to declare dividends in the past 19 years, as the last dividend was declared in 2005.
They were lauded for breaking such as now the company has been able to give out dividends for two consecutive years.
The four primary shareholders benefiting from this distribution include the Eswatini Government, Eswatini National Provident Fund (ENPF), Standard Bank Eswatini, and Nedbank.
IDCE, as a leading Development Finance Institution, has said that it prioritises giving back to its stakeholders, particularly those with majority ownership by Eswatini institutions.
Among the shareholders, the Eswatini Government holds a 34.98% stake and the Eswatini National Provident Fund (ENPF) with a significant 61.95% share.
Standard Bank Eswatini and Nedbank each hold a 1.55% stake in the company. Present during the distribution event was the Minister of Finance Neal Rijkenberg, IDCE Board of Directors and the company’s management and staff led by Chief Executive Officer (CEO) Fairlie Mabuza.
Minister lauds IDCE’s substantial contribution to economic growth, praises strategic milestones
The Minister of Finance Neal Rijkenberg cited IDCE’s major impact on Eswatini during the declaration of dividends.
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The Minister further expressed the pivotal role of IDCE in the nation’s economic development strategy and lauded the company’s achievements in contributing to employment creation and industrialization.
The Minister emphasized that IDCE is dedicated to sustainable growth and profitability.
He commended the company’s prudent financial management practices and strategic investment decisions, which have enabled it to weather economic challenges and emerge stronger.
“As custodians of shareholder value, IDCE remain steadfast in the pursuit of sustainable growth and profitability,” the Minister remarked.
“The prudent financial management practices, coupled with astute investment decisions on the part of the IDCE Board have enabled the company to navigate through difficult economic conditions and emerge stronger, as we witness this milestone today, where IDCE is now able to declare a dividend.”
The declaration of dividends, Minister Rijkenberg noted, represents a collaborative effort among shareholders and a result of their collective resilience and strategic vision.
Minister Neal highlighted the significance of IDCE’s strong revenue growth and solid balance sheet, which have enabled the company to declare dividends for two consecutive years since the government’s acquisition of shares in 1981.
The Minister stressed that the payment of dividends shows IDCE’s viability as an entity and its ability to fulfil its mandate of industrializing the country and creating jobs.
He emphasized the importance of dividends as a requirement for parastatals and praised IDCE for its real organic growth and hard-earned profits.
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Rijkenberg further encouraged IDCE to expand its participation in key sectors such as mining, energy, and construction to attract foreign direct investment and stimulate economic growth.
He urged the company’s board to continue identifying worthwhile invest
ments that contribute to job creation and youth empowerment.
“As the government, we encourage IDCE to increase participation in other key sectors such as mining, energy and the construction of factory shells (the built environment),
As this is a catalyst for foreign direct investment (FDI) in the ideal which His Majesty The King actively advocates across all forums,” Minister Neal said.
The Minister stated that the announcement of dividends signifies IDCE’s financial strength, operational excellence, and confidence in prospects.
He expressed gratitude to co-shareholders for their continued support and highlighted the dividends’ contribution to the national treasury, enabling funding for essential public services and infrastructure projects.
Rijkenberg again, applauded IDCE’s achievements and called for continued commitment to excellence and responsible stewardship of resources.
The Minister urged stakeholders to celebrate the big occasion and emphasised the government’s dedication to strengthening economic growth and development.
IDCE Board Chairperson highlights milestone for company
The Industrial Development Company of Eswatini (IDCE) Chairperson of the Board of Directors, Dumisani Kunene has highlighted the milestones of the company during the dividend’s presentation ceremony.
Kunene began by acknowledging the significance of the day, emphasizing the importance of the dividend payment as a reflection of IDCE’s robust financial performance and continued devotion to delivering returns to its shareholders. He shared that this distribution shows confidence in IDCE’s business model.
The Chairperson expressed gratitude to the IDCE team for their dedication and hard work, as well as to the shareholders for their trust and confidence in the company.
He highlighted the fact that IDCE has not been able to declare dividends for the past 19 years, making the occasion even more enormous.
He expressed that the consecutive dividend declarations over the past two years, with an increased value compared to the previous year, highlight the company’s to returning capital to shareholders while also retaining resources for strategic investments and future growth initiatives.
Kunene proudly stated that the distribution was a turning point for IDCE, as he supported such by key achievements such as a stronger balance sheet boasting an asset base of E1.2 billion.
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Sustained growth in Return on Equity, and increased state ownership in Piggs Peak Plaza from 45% to 100% in 2023. Additionally.
IDCE has increased funding to LUSIP II Farm projects to the value of over E170 million, among other notable strides towards fiscal development, industrialization, and job creation.
The Chairperson further expressed hope about IDCE’s prospects, rooted in strong strategic objectives and the fulfilment of its mandate.
He revealed that the company is in the process of developing a comprehensive dividend policy to provide greater clarity and predictability for future distributions.
In addition, Kunene extended his sincere gratitude to the Board of Directors, management team, employees, and shareholders for their contributions to IDCE’s success. He toasted to continued success.
