IDBZ gets $150m capital injection

IDBZ gets $150m capital injection
Published: 05 September 2018 (233 Views)
The Government has injected $150 million equity capital into the Infrastructure Development Bank of Zimbabwe to help the institution discharge its mandate of providing long and medium term funding for key infrastructure projects.

The Government is the majority shareholder in IDBZ and it last injected $18 million as equity capital about two years ago.  As part of the bank's medium term strategy: 2016-2018; it is looking at reaching the capitalisation target of $250 million.

"Last week, the Government injected an additional $150 million equity capital into the Infrastructure Development Bank of Zimbabwe," the bank said in a statement yesterday.

"The capital injection is testimony of the importance Government places on the role being played by the IDBZ in economic development and growth, and the improvement of the living standards of Zimbabweans 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, water and sanitation, information and communication technology and housing sectors."

The bank's interventions in these sectors include providing technical capacity building in project preparation, contract negotiations, implementation monitoring, resource mobilising and implementation, knowledge generation and sharing.

In six months to June this year, the bank spent $20 million on capital projects mostly in housing. About $14,8 million was spent on Baobab, Kasese and Batonga projects in Kariba and $5,8 million on Empumalanga housing project in Hwange. IDBZ chief executive officer Thomas Sakala said the projects were expected to be completed this year.

The bank also approved a $10 million budget during the beginning of the year for land acquisition for various infrastructure development projects.

The land investments are spread across the country in places such as Kanyemba, Plumtree, Lupane, Gwanda, Bulawayo, Masvingo, Kwekwe, Zvishavane, Marondera and Harare. Land and properties worth $7,3 million have been purchased in readiness of already identified future development.

In the past few years, the bank raised funds through issuance of bonds to partly finance the expansion of Kariba Power Station expansion and acquisition of prepaid meters. The bank also raised the funds required to complete the contraction of Tugwi Mukosi, the country's largest inland dam.

"His Excellency, President Mnangagwa has set a clear vision of Zimbabwe becoming an upper middle-income economy (Vision 2030) and with the $150 million capital injected by Government, the bank will now play its catalytic role as an enabler of national growth and transformation, thus assisting the Government in meeting its policy objectives on infrastructure," said the bank.

Zimbabwe has an estimated infrastructure backlog of $30 billion, according to the Africa Development Bank, after years of little investment into the sector. Between 2009 and 2016, the Government spent a total of only $2 billion on infrastructure projects, the amount analysts say should have been spent on an annual basis.

The huge debt overhang and arrears to the multi-lateral financial institutions, including the International Monetary Fund and the World Bank also made it impossible for the country to raise long term capital critical for infrastructure projects. In the absence of balance of payments support from multi-lateral financial institutions, Zimbabwe has been operating on a tight budget, with the bulk of revenue going towards paying wages, leaving it with little or virtually no money for infrastructure.

- the herald

Tags: IFBZ, Funds, Govt,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 758 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1476 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1118 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1160 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1129 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 936 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 761 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 730 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 609 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 994 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 628 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 670 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 662 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 535 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 620 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 620 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 608 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 587 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 430 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 394 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 595 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 956 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 649 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 614 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 597 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 676 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 567 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 508 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 553 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 549 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 523 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 595 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 524 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 475 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 600 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 932 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 561 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 482 Views