IDC Faces Funding Bias Allegations from Black Entrepreneur
The Industrial Development Corporation (IDC) is facing scrutiny following allegations of funding bias leveled by Fezile Dlamini, founder of Green Scooter, a Soweto-based electric vehicle company. Dlamini claims the IDC unfairly denied funding to his business over an eight-year period while simultaneously approving R69.9 million for a white-owned competitor in Cape Town, Mellowcabs.
Green Scooter’s Struggle for Funding
Fezile Dlamini invested R9.5 million of his own funds over eight years to develop Green Scooter, which manufactures electric three-wheeled vehicles for delivery services and corporate clients. The company has deployed over 70 electric vehicles to blue-chip companies, compact and medium-sized enterprises and has even exported vehicles to the United Arab Emirates. Despite this traction, Dlamini alleges the IDC consistently rejected his funding applications, often shifting requirements and citing issues like a lack of sales before providing capital to generate them.
Allegations of Unequal Treatment
Dlamini asserts that the IDC approved approximately R69.9 million in funding for Mellowcabs, a competitor producing similar electric vehicles. He discovered this information through public disclosures and during interactions with the IDC. He lodged a complaint with Parliament and the Public Protector, seeking clarity on whether the same criteria were applied to both companies. Dlamini emphasized he is not attacking his competitors, but rather questioning the fairness of the IDC’s decision-making process. News24 reports Dlamini stated, “Were the same criteria applied to both companies? If yes, show me. If not, that needs to be addressed.”
IDC’s Response
Tshepo Ramodibe, IDC head of corporate affairs, did not respond to specific questions regarding the reasons for rejecting Green Scooter’s application or the criteria the company failed to meet. Ramodibe stated the IDC is bound by client confidentiality and will engage directly with Dlamini. The IDC acknowledged Dlamini’s applications, which date back to 2018, were subjected to their approved assessment processes.
Parliamentary and Nafcoc Concerns
Dlamini’s complaint comes after a recent debate in the portfolio committee on trade and industry regarding concerns raised by the National African Federated Chamber of Commerce and Industry (Nafcoc) about the IDC’s treatment of Black-owned businesses. Many parliamentarians called for an inquiry into the IDC’s alleged bias. The Citizen reports that parliamentarians called for an inquiry into the IDC’s “anti-black” attitude.
Future Plans for Green Scooter
Despite the funding challenges, Green Scooter has secured a 6,500 square meter factory at the Tshwane Special Economic Zone and has been awarded a subcontract to assemble electric three-wheelers for export to Nigeria, with a pipeline of 24,000 units. The company has also signed a distribution agreement for 6,500 units with a UAE-based partner for distribution in the Middle East and North Africa. Joburg ETC reports Dlamini expressed satisfaction with the company’s growth and achievements.