IDC mulls new bond

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Ecocash

The Industrial Development Corporation of Zimbabwe has plans to float a bond on the Econet Wireless platform as a way of raising money from the public.

Victoria Mtomba,Business Reporter

Speaking before the Parliamentary portfolio Committee on Industry and Commerce, IDC general manager Michael Ndudzo said the company required funds to do its job of lending money to the public. He said for the past 22 years, the company has not received funds from Treasury but relied on its investments.

“We have approached Econet so that we can use their EcoCash platform. We are still trying to pursue them. We are keen to use their platform,” he said.

A bond is a debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. He said bonds can help in this market where short-term funds are available as they will be structured over long periods.

Ndudzo said in 2012 the corporation raised $13,5 million through CBZ as a diaspora bond and the money was used for the upgrade of Surface Investments.

He said the corporation, during the Zimbabwean dollar era, floated a bond with Intermarket that was oversubscribed. The Infrastructure Development Bank has said it would float $60 million bond this year while a $30 million bond that they floated in 2012 was undersubscribed.

Ndudzo said work in progress for the corporation has been stalled due to low domestic savings and country risk, affecting appetite from foreign direct investors, and the need in most cases for reinvestment to upgrade plant and equipment.

“Major perceived and real policy impediments have been on indigenisation thresholds, immigration of skilled staff, retrenchment costs and regulations and property rights,” he said.

Ndudzo said close to 78 investors have reversed deals when they wanted to seal a deal with Olivine Industries, a subsidiary of the corporation. He, ho wever, said the corporation was engaging in talks with a multibillion investor.

IDCZ subsidiaries include Almin Metal Industries, Amtec, Sunway city, Allied Insurance, Zimbabwe Copper Industries, Deven Engineering, Willowvale Mazda Motor Industries, Sable Chemicals, Zimphos, Dorowa Mineral and others.

6 COMMENTS

  1. “We have approached Econet so that we
    can use their EcoCash platform. We are
    still trying to pursue them………”
    Which is which???

  2. Might this be time in the purge of parastatals to retire Mr. Ndudzo and bring in a fresh pair of hands which might take the group in another direction? As a parastal among many, perhaps the authorities can redeploy him elsewhere. He does not seem to have been able to move IDC forward. This could be through no fault of his own but that IDC is screaming for a fresh pair of hands!!!

    • very correct. this the problem of over staying ceos in government parastatals. ndudzo has been there forever. there is need for new brains. terms of office for ceos and general managers should be limited to at most 10years. when it goes beyond that many problems arise and the net effect is non-performance of the parastatals.

  3. I will never , ever, ever, invest a single dollar in any government organisation until government cleans up the current financial mess.

  4. Econet may need to tread carefully in any joint ventures with Zanu-PF businesses like IDC. Currently, IDC is banned by the United States of America and these reported plans to float a bond on the Econet platform could be a strategy to turn the Zimbabwean public against the United States under Mugabe’s sanctions mantra. Let the bond buyers beware.

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