Cabinet okays IDC restructuring

Source: Cabinet okays IDC restructuring – Sunday News Feb 19, 2017

Dumisani Nsingo, Senior Business Reporter
CABINET has approved the restructuring of the Industrial Development Corporation (IDC) into a Special Purpose Vehicle to stimulate industrial development.

Industry and Commerce Minister Dr Mike Bimha said the restructuring of IDC was on going and would see some of the companies being owned by the corporation weaned off to investors.

Some of the companies in which IDC owns shares include Almin Metal Industries, National Furniture Industries and Olivine.

“A paper on the restructuring of IDC was approved by Cabinet which looked at disposing some of them as well as facilitate the takeover of others by local investors as well as foreign investors. So it will soon go back to play its role of facilitating industrialisation, at the moment we are working on the mechanism to fund it to be operational,” said Dr Bimha.

IDC is mandated to establish and conduct any industrial undertaking, to facilitate, promote, guide and assist the financing of new industrial undertaking (including small and medium-scale), schemes for the expansion, better organisation and modernisation of and more efficient carrying out of operations in existing industries and industrial undertakings.

“IDC’s mandate is to drive industrialisation but in the past it has diverted and started to run companies which it owns but it is reverting to its core business,” said Dr Bimha.

It is also mandated to implement Government policy with regard to decentralisation of industry, choice of technology and any other matter, which the Minister of Industry and Commerce may specify and to take measures to acquire direct and effective control of its investment.

To that end, this is meant to ensure that industrial development in Zimbabwe may be planned, expedited and conducted on sound business principles.