South Africa's Industrial Development Corporation, a government-owned body promoting economic growth and industrial development, aims to invest just under 20 billion South African rands ($2.7 billion) in projects during its 2012 financial year.

That compares with ZAR9 billion in investments during 2010 while the 2011 figure is still being tallied, IDC Chief Executive Geoffrey Qhena told Dow Jones Newswires on the sidelines of an Economic Development Department-sponsored conference Friday.

Over the next five years ZAR100 billion in spending is targeted, Qhena said.

Qhena said a government drive to spend more on infrastructure, announced by President Jacob Zuma in his state of the union address this year, will be key to where investments are made.

Renewable energy will also be important, Qhena said. The government is holding a series of tenders for licenses, primarily to develop wind and solar power. He said the IDC provided about ZAR5 billion for renewable energy projects during the first tender.

It will also look to help finance projects that encourage regional integration in Africa.

In March the IDC said it agreed to buy a 16.2% stake in a new consortium of platinum producers led by South Africa-listed Pallinghurst Resources Ltd. (PGL.JO) for ZAR3.24 billion or $420 million plus warrants equal to another 4% stake in the company.

-Devon Maylie, Dow Jones Newswires, +27 11 783 7848; devon.maylie@dowjones.com
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