Source: Govt injects $150m into IDBZ – DailyNews Live
Omega Ukama 5 September 2018
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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