IDC has found itself at the centre of controversy over funding.
- Fezile Dlamini spent R9.5 million of his own money over eight years building Green Scooters.
- The IDC allegedly approved R69.9 million for a white-owned Cape Town competitor during the same period Dlamini’s applications were being declined.
- Dlamini claims the IDC kept shifting requirements despite a 2019 executive directive to fund Green Scooters.
- For more news, click HERE.
An entrepreneur has lambasted the Industrial Development Corporation (IDC) for allegedly turning down his funding application for his electric delivery vehicle business while funding a white competitor.
Green Scooters founder Fezile Dlamini went on a tirade this week, alleging that the IDC rejected him despite his having spent R9.5 million from his own pocket over the past eight years to build Green Scooters.
READ: QUICK READ: IDC loses R74 million on phantom Kenyan boats – City Press Sunday investigation
The company has deployed 70 electric vehicles to blue-chip companies and local small, medium and micro-sized enterprises, and has exported to the United Arab Emirates.
While his application was being rejected, Dlamini alleged, the IDC gave R69 million in funding to a white-owned company, whose name is known to City Press, in Cape Town that competed with Green Scooters – the first black-owned electric vehicle company.
Green Scooters produces vehicles for blue-chip corporate clients across quick-service restaurants, fast-moving consumer goods, logistics, retail, telecoms, financial services and e-commerce.
Dlamini has, meanwhile, lodged a complaint with Parliament and the Public Protector.
Soweto-born Fezile Dlamini is the founder of Green Scooters.
Dlamini’s complaint follows hot on the heels of a debate by the portfolio committee on trade and industry about a presentation by the National African Federated Chamber of Commerce and Industry (Nafcoc) three weeks ago.
READ: UPDATE | Trouble for brand-new IDC board as govt warns of conflict of interest
The Nafcoc complaint highlighted the IDC’s alleged heavy-handed treatment of black-owned businesses facing various financial challenges. Most parliamentarians called for an inquiry into the IDC’s “anti-black” attitude.
Dlamini said the IDC had frustrated him over the past eight years as he sought assistance, even though there was an executive directive issued in 2019 to fund Green Scooters.
“Over eight years of engagement, the requirements shifted at every stage. I was asked to change my business model multiple times. I was told to come back with proof of sales before I could access the capital to make those sales. I was referred between departments in circles,” Dlamini said.
Applications were cancelled on technicalities after months of engagement. The IDC approved approximately R69.9 million in funding for [our competitor] during a period when our own applications were being declined.
Fezile Dlamini
Dlamini said he became aware of the competitor’s funding through public disclosures and information shared during his engagement with the IDC. He said the IDC rejected his Promotion of Access to Information Act request to obtain comparative data in 2021.
Dlamini said his complaint was not intended to attack his competitors.
“I respect anyone who is trying to advance electric mobility in South Africa. What I have asked, and what I continue to ask, is a simple question: Were the same criteria applied to both companies? If yes, show me. If not, that needs to be addressed. The parliamentary petition and the Public Protector submission deal with this in detail,” Dlamini said.
IDC head of corporate affairs Tshepo Ramodibe did not respond to questions asking the IDC to specify the reasons for rejecting Green Scooters’ application and the which criteria the company failed to meet.
READ: IDC board members pocket hundreds of thousands of rands
City Press also asked the IDC to clarify who applied first between Green Scooters and the competitor amid perceptions of collusion.
The IDC is bound by strict client confidentiality obligations, and this policy extends to the companies referenced in your enquiry. We will engage directly with the complainant.
Tshepo Ramodibe
Dlamini said he was, however, satisfied with Green Scooters’ growth and achievements. He said the company has been allocated a 6 500metre² factory at the Tshwane Special Economic Zone and would now engage in large-scale manufacturing.
He also said the company had been awarded a subcontract to assemble electric three-wheelers for export to Nigeria, with a one-year volume of 2 400 units and a total pipeline of 24 000.
Green Scooters, Dlamini said, had signed a distribution agreement for 6 500 units with a UAE-based partner for the Middle East and north African market.
