lDCZ avails funding for industry

Source: lDCZ avails funding for industry | Herald (Business)

Ishemunyoro Chingwere Business Reporter
The Industrial Development Corporation of Zimbabwe Limited (IDCZ) has begun availing loans to local industry in a move set to breathe life in some faltering firms as well as kick-start several greenfield bankable projects.

The funding, which will see successful companies getting anything between $1 million and $5 million, will attract a nominal interest of 15 percent per annum making the fund lucrative in the face of about 50 percent interest which is being charged by most financial institutions.

This comes on the back of Government’s decision to resuscitate IDCZ’s lending function as a Development Financial Institution (DFI) and cabinet’s directive that the $30 million allocated to IDCZ in the 2019 National Budget as seed capital be released and put to use.

In an invitation extended through the media this Sunday, IDCZ advised that it was on the market for bankable loan applications from all parts of the country and for which it was looking to provide funding for up to $5 million.

The Development Financial Institution advised that its major interest which is in both brownfield and greenfield projects, will have a bias towards companies that are in the manufacturing and value adding sector.

It also noted that companies or projects with potential to export or are already exporting and or import substitute will have a priority as well as those with high employment impact in line with Government’s employment creation drive.

“The Industrial Development Corporation of Zimbabwe Limited (IDCZ) is inviting bankable applications from all parts of the country for consideration for loan funding under the Industrial Development Fund,” said IDCZ.

“This follows recent resourcing of the fund by the Government of Zimbabwe. Consideration will be on a first-come-first-served basis.

“Targeted beneficiaries should be corporates (brownfield/greenfield) who are into manufacturing and value adding activities especially those who are exporting or have potential to export and import substitution with high employment impact.