IDBZ engages Chinese Development Bank

THE Infrastructure Development Bank of Zimbabwe (IDBZ) has re-engaged China Development Bank over a $30 million line of credit that it failed to draw down due to sanctions.

Report by Victoria Mtomba

IDBZ public relations executive Priscillah Mapuranga said the infrastructure bank signed a finance agreement with China in November 2011, but failed to access the funds as a result of economic sanctions placed on the bank then.

IDBZ was one of the government institutions recently removed from the sanctions list. Other entities that got the reprieve were ZB Bank and Agribank.

“The Bank was, however, unable to draw down due to issues relating to its listing on the United States of America OFAC Sanctions List. The removal of the IDBZ from the OFAC Sanctions List has seen the Bank re-engaging China Development Bank, with a view to commence the draw down on the facility,” she said.

Mapuranga said the funds would provide working capital and capital expenditure to industry and commerce including small to medium enterprises.

“Of the $30 million, $20 million will be for capital expenditure with a five-year tenure and the balance of $10 million will be for working capital, with a tenure of 12 months,” she said.

IDBZ chief executive officer Charles Chikaura in February this year told NewsDay that the bank would spend $200 million on key infrastructure projects beyond the capacity of the domestic capital market.

The infrastructure bank would source the funds from both local and foreign markets.

He said the liquidity crunch in 2012 hampered progress in terms of financing infrastructure projects.

Despite these challenges, last year the bank successfully issued its maiden Infrastructure Development Bond and raised $17,8 million for the prepaid metering project being implemented by Zesa from a total of $30 million.

The infrastructure bank in the first half of 2012 disbursed $100 million to 43 infrastructure projects in the energy, transport, water, sanitation, housing development and information communication technology sectors.

IDBZ is a statutory body established through an Act of Parliament in September 2005 following the amendment of the Zimbabwe Development Bank (ZDB) Act.

The amended ZDB Act broadened the original mandate to focus on long-term infrastructure finance and development.

The Bank has a broad-based shareholding, including local institutional investors and foreign development finance institutions.

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  2. Dzvinyangoma

    Did Alpha Media editors see this story before publication? The number of times Alpha Media stable papers wrote editorials denying the existence of sanctions and their impact on the national economy? Isn’t it interesting how you acknowledge the removal of sanctions on entities of national importance but never acknowledged the negative impact it had on our country’s economic development? So called independent media and the MDCs must apologise to the country for lying and misrepresenting the existence and nature of USA sanctions. For years you misinformed the nation saying the sanctions were only targeted at individuals and their businesses. How then and why were these banks under sanctions and have just been removed after so long? Yet you cannot avoid complaining about how agriculture has struggled when you knew the banks that would have funded the sector were under sanctions. Pliant journalists have killed Zimbabwe all for USA and other foreign funding to misinform.

  3. Dzvinyangoma wataura apa matofo anosapota mdc aiti hakuna mabank ari pamasunction ndichivataurira. Honhai izvi ndozvauraya nyika izvi. Taifanirwa taveri kure nebudiriro. Eish mdc izere nematofo oga. Munosapota vanhu vanouraisa nyika.

  4. @DZVINYANGOMA ‘DZVINYA’ madofo ose emaMDCs nemafacts vaudze chokwadi hava zive vanhu ava. Zvino masanctions acho achangobva chete vasingade kudaro. Right now Cde Mpofu is in Israel marketing our precious Dimonds come rain come thunder we will survive under those sanctions be it targeted or what we don’t care. Zvingatonetsa ivo vanhu veMDCs vakajaira kufidhwa semaBroillers ehuku. Look at Cuba, 50 yrs under sanctions, but they are getting stronger everyday. Varume changamukai!

  5. Devil, what did Cuba do that enabled them to circumvent e imposed sanctions for 50yrs, where they e same as ours cz thats e side u probably faild to observe! however e main nyaya here is not only acknowledging e existance of e sanctions but i believe finding a way 2 remove e sanctions. Food for thought…

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