IDC’s performance for 2021-2022 positive   By Laura Pillay   |16 February 2023

Mr Savy

The Islands Development Company (IDC) is satisfied with its performance over the 2021-2022 financial year, and expects to end the 2022-2023 financial year on an even higher note.

Chief executive Glenny Savy revealed last week that the company made a profit of R53 million before tax, and R36 million after tax.

“We made slightly more profits than we expected. For us, it has been a consolidation year in the sense that we consolidated a lot of activities after the Covid-19 pandemic. Our workforce has increased and we have enlarged our activities a bit,” said Mr Savy.

“There are many foundations which have been created during this period, for which we will see the results at the end of the coming (financial) year. We will see even better results than last year. All the decisions we have taken over the past two years are bearing fruits,” Mr Savy noted.

Among the highlights of the financial year was the setting up and commissioning of three solar farms on Astove, Farquhar and Desroches islands, all three of which now produce over 90 percent of their electricity requirements from solar energy.

The Islands Development Company (IDC) also added a third Beechcraft to its fleet at a cost of US $2.8 million, a much-needed addition for further development of the islands, and based on increasing demand for flights to the outer islands. Despite the significant investment, the IDC aircraft department recorded turnover of R81 million, in comparison to the 2019-2020 financial year where turnover was just R32 million.

On the construction front, subsidiary company Green Island Construction Company (GICC) progressed well with work on the US $50 million 42-luxury six-star villa resort on Ile Plate, and the project is on track to be completed by the third quarter of 2023.

According to Mr Savy, IDC’s most profitable activity at present is the provision of services which are sold to operators on the islands under its portfolio.

The vast majority of such services are linked to touristic activities, such as, flights for tourists and staff, cargo flights for perishables being transported to the islands from Mahé and boating services for the transportation of food, among other goods. 

Additionally, IDC also sells electricity, water, sewerage services, litter-removal, landscaping and maintenance.

Although its service-related activities are more profitable currently, with the establishment of the new agricultural research station on Desroches island, it is expected that agriculture, inclusive of the aquaculture prawn farming facility on Coetivy, will in the next five years “probably be bigger than services”, Mr Savy noted.

Demands for the locally-produced vegetables and semi-free range eggs are quite significant, according to Mr Savy.

Asides from challenges including the pandemic, IDC is still faced with manpower development challenges, a problem which has persisted since the 1980s.

However, the company has made substantial progress in terms of manpower on the professional level, with a number of its staff being holders of degrees and higher qualifications. The company invests around R4 million in training of staff annually.

Mr Savy attributes the shortage of labour to substance abuse, as well as the lacking sense of responsibility among the youths, most of whom “change jobs too frequently”.

IDC is also currently in talks with government towards bringing the different ministries and departments to understand that the way in which work unfolds on the outer islands is rather different to the world of work on Mahé. The company is not seeking a different set of laws, Mr Savy clarified, but that rules and regulations are applicable to the outer island environment.

With the expansion of its professional and managerial base over recent years, Mr Savy is confident that the company will be in capable hands and that there will be continuity, even after his departure. Mr Savy has headed the IDC for some 40 years now.

“I have had the chance to see the company develop through different phases. A lot of developments have taken place, a number of infrastructure on the islands have opened up the opportunity for private investments to take place,” he noted.

“As I always say, even if I were to stop at IDC tomorrow, I am confident that the team can make IDC work, and continue with the developments that we have made, and maybe, bring about some new ideas. They are already introducing new strategies and ideas which we are implementing,” Mr Savy stated.

Laura Pillay