The Industrial Development Corporation (IDC) is currently reviewing the state of the South African economy as it seeks to develop a coherent response to the current financial crisis that spans all sectors of the economy.

A recent report published by the Presidency and the National Economic Development and Labour Council (Nedlac) suggested that the IDC should play a significant role in supporting vulnerable firms in the automotive, clothing and textiles and mining sectors.

However, in an interview with Engineering News, Geoffrey Qhena, chief executive of the IDC, said a number of firms and sectors, particularly those with a heavy exposure to export markets, are likely to be suffering as demand cools rapidly.

The IDC began looking into the sectors of the economy that were most likely to suffer late last year, said Qhena, noting that the findings should be available within the next few weeks.

Qhena added that the IDC has a number of tools at its disposal, such as extending repayment periods; relaxing repayment terms; restructuring company debt and injecting further capital into balance sheets.