Govt injects $150m into IDBZ

HARARE - The Infrastructural Development Bank of Zimbabwe (IDBZ) yesterday said government has injected an additional $150 million fresh capital into the financial institution.

Industry experts said the recapitalisation of State banks is a significant change from the drip-feed approach pursued over the last few years and should help to address the capital shortages that are a major negative influence on economic growth.

This comes as government has set a vision for the country to attain Upper Middle Income Economy status by the year 2030, this will undoubtedly involve significant infrastructure development in which IDBZ will play a critical role.

IDBZ said the latest capital injection is testimony of the importance government places on the role being played by the lender in economic development and growth, and the improvement of the living standards of Zimbabwe through the development of infrastructure.

“A strong capital base for IDBZ will enhance its efforts in championing infrastructure development through high impact investments in energy, transport, water and sanitation, information and communication technology, and housing sectors,” the bank said.

During the first six months of the year, the bank embarked on the execution of the Kariba Housing Projects as well as the Hwange Empumalanga Housing Project, which are both earmarked for completion before the end of the year.

Willard Manungo, the IDBZ board chairperson, said the fresh capital injection would capacitate the bank to continue making tremendous contributions towards complementing government initiatives in the implementation of various projects, “focusing on expeditious completion of ongoing infrastructure projects so that they begin contributing to the revival of the economy”.

Other projects currently under the bank’s administration include Osborne Mini Hydro Power which has a budget of $5 million, Rooftop Solar Energy worth $27 million, the Chinhoyi Students Complex, $12 million and the Lupane Students Complex for $14 million.

The infrastructure development finance institution incurred a loss of $1,2 million for the half year, coming off a profit of $196 572 recorded in the comparable period last year.

The bank’s revenue, at $4,2 million, was down by eight percent from $4,6 million recorded in the comparable period in 2017.

Total assets increased by 71 percent during the half year to June, from $189 million to $323 million.

The infrastructure development finance institution, which is wholly own by government, has been earmarked for partial privatisation as part of reforms meant to enhance the performance of State Enterprises and Parastatals.

— The Financial Gazette

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