IDBZ secures $20m facility

HARARE  - The Infrastructure Development Bank of Zimbabwe (IDBZ) has secured $20 million from government aimed at capacitating the financial institution to deliver on its mandate of infrastructure development in energy, transport, water and sanitation, information and communication technology, and housing sectors.

The latest development comes after government last year hived off the bank’s $38 million legacy debt last year.

IDBZ spokesperson Priscilla Mapuranga told businessdaily yesterday that this continued support will strengthen the bank’s balance sheet and give it capacity to partner government in delivering infrastructure development in the country for the attainment of the national vision of an empowered society and a growing economy.

“A stronger balance sheet will allow the bank to co-finance projects and also leverage its capital to raise more funding from regional and international financial partners particularly in the wake of government’s debt clearance programme agreed in Lima, Peru, and its initiative to obtain insurance for political and sovereign risk from the African Trade Insurance Agency,” she said.

Mapuranga noted that IDBZ seeks to become a pre-eminent development finance institution in the region, particularly given the economic potential of the country which is poised to become a strategic economic hub in the region.

“While the IDBZ’s mandate derives from its enabling Act, the bank’s strategy and operations remain informed by the socio-economic development agendas as encapsulated in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the Ten-Point Economic Growth Plan enunciated by His Excellency President Robert Mugabe and the recently approved Global 2030 Agenda for Sustainable Development Goals.

“These broad developmental agendas recognise the importance of infrastructure as a critical enabler to economic growth and poverty reduction,” she said.

Established in 2005 as a successor organisation to the Zimbabwe Development Bank, IDBZ is mandated to champion sustainable infrastructure development through mobilisation of resources capacity building and knowledge generation and sharing in support of national efforts for inclusive socio-economic development.

The infrastructure development bank aims to be a $1 billion financial institution by statement of financial position size by 2018.

Government is the largest shareholder in IDBZ with an unassailable 87,2 percent equity while the Reserve Bank of Zimbabwe is a distant second with a shareholding of 12,42 percent.

The remainder is owned by seven shareholders that include the African Development Bank, German Investment and Development Corporation and the European Investment Bank among others.

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