Infrastructure Development Bank of Zimbabwe to facilitate resource mobilisation for US$345 million projects

Source: Infrastructure Development Bank of Zimbabwe to facilitate resource mobilisation for US$345 million projects | Sunday Mail (Business)

IDBZ completed construction of the US$17 million student accommodation complex in Bulawayo

Nelson Gahadza

THE Infrastructure Development Bank of Zimbabwe (IDBZ) says it has booked projects worth US$345,7 million and is ready to facilitate resource mobilisation.

IDBZ board chairperson Dr Kupukile Mlambo said the financial institution is currently engaged with its shareholders on foundational capitalisation initiatives that are key to anchoring the implementation of its recapitalisation programme.

The programme targets a capitalisation level of US$500 million in the medium term and US$1 billion by 2030.

“In order to effectively execute its mandate, the bank will need to leverage on a stronger balance sheet as it pursues project financing, strategic partnerships, public-private partnerships and climate finance initiatives,” revealed Dr Mlambo as he commented on the group’s 2023 financials.

He noted that the bank was accredited to the Green Climate Fund in September 2022, with its five-year accreditation period as a direct access entity running from January 18, 2023.

Dr Mlambo also stated that the bank is in the final stages of establishing a dedicated climate finance facility (CFF), whose aim is to mobilise resources for financing green projects.

“To crowd in investors, the Government has committed to inject US$3 million as seed capital into the CFF and in 2024, the bank will continue to strengthen its climate finance capabilities to harness available funding for infrastructure development,” he said.

The bank is also pursuing the European Organisation for Sustainable Development’s Sustainability Standards Certification Initiative (SSCI), spearheaded by the Reserve Bank of Zimbabwe, he added.

“The SSCI is a testament to the bank’s commitment to sustainable development, raising funds for green and low-carbon investments and adopting best practices in environmental, social and governance frameworks,” added Dr Mlambo.

IDBZ strives to uplift the livelihoods of Zimbabweans through sustainable infrastructure development.

Dr Mlambo said, in line with Vision 2030, the bank is committed to reducing the country’s housing backlog through various accommodation projects.

“The IDBZ further responds to the national call for sustainable energy generation, guided by the nationally determined contributions, through the development of renewable energy projects,” he said.

The bank will continue striving to execute its mandate to fund the development of onsite and offsite infrastructure, cluster homes, flats and student accommodation facilities for tertiary institutions, working with other Government departments and agencies, he added.

IDBZ chief executive Mr Zondo Sakala said the bank raised US$5,82 million from the market in 2023 to finance different infrastructure projects.

He said the money was used for projects that included construction of the Willsgrove Park Phase II Housing Project, Bulawayo Students Accommodation City, Eyestone Quarry Private Limited and Bluffhill Cluster Homes.

IDBZ also invested US$154 million towards supporting the Pagomo Cluster Housing Development, Waneka Phase 3 Housing Development Project and Kanyemba Fishing Lodges.

“To effectively deliver on its mandate of promoting economic growth through championing investments in infrastructure development, the bank is building a pipeline of projects that are bankable and shovel-ready to facilitate resource mobilisation,” said Mr Sakala.

During the 2023 financial year, IDBZ projects included construction of Athol House Apartments, also known as Eastlea Flats, at a cost of US$3 million; Pagomo Cluster Houses Development at US$6 million; Dabuka Village double-storey apartments (US$9,1 million); Clipsham View Hotel (US$12 million); and the Ministry of National Housing and Social Amenities (MoNHSA) and Shelter Afrique Advisory (US$25 million).

Other projects include the Glen Forest Housing Development valued at US$6 million; the MoNHSA Special Drawing Rights Loan Advisory (US$10 million); the Mutare Student Accommodation Project (US$16,2 million); the Nyazura 10 megawatt solar power plant (US$10 million); the Kwangu/Ngakwami Presidential Title Deeds Programme (US$100 million); the Chirundu Border Post Modernisation Advisory (US$89 million); the Ravensus Solar Project (US$49 million); and Bindura University Sodium Silicate Project (US$10 million).