Afreximbank VP sounds alarm on project preparedness
Africa Export-Import Bank (Afreximbank) executive vice president – Finance, Administration and Banking, Denys Denya, has expressed deep concern over the lack of preparedness among Zimbabwean firms seeking funding from the bank.
While outlining the bank’s interest in key sectors of the Zimbabwean economy, Denya highlighted a significant gap in project development and execution.
“People want to do a lot of things but they have not thought through the production process, market access and the technology needed to undertake the project,” Denya said in an exclusive interview on the sidelines of the SADC Industrialisation Week and Investment Conference that ends today in Harare.
The bank, which has earmarked US$400 million for Zimbabwean companies seeking to expand their operations within the continent, has received a flurry of inquiries. However, the quality of these proposals has fallen short of expectations.
“We have had approaches where people said they want to do certain projects yet they lacked factual information as to why they want to do it, where it is going to be situated and what is needed,” Denya revealed. Such shortcomings, he argued, underscore a broader issue of project preparation and execution in the country. To bridge this gap, Afreximbank intends to deploy its project preparatory facility to assist potential beneficiaries in developing bankable proposals.
“There is a gap, not only to project preparation but even project execution,” Denya emphasised. Despite the challenges, Afreximbank remains committed to supporting Zimbabwe’s economic growth. The bank is eyeing key infrastructure projects, including the rehabilitation of the rail network.
“As for NRZ we are able to get people to come in with technical diagnostics so that we actually know the state of the rail tracks, the load they can carry and the parts that need to be replaced. There is a lot of investigation that needs to happen considering what is happening right now in Zimbabwe, before projects can really take off.
“This is more urgent as we will look into rehabilitation of rail infrastructure, importation of wagons, to enable the evacuation of minerals and also steel,” Denya said.
The bank is also exploring opportunities in the power sector, particularly in light of the Government’s plans to expand the Hwange Power Station. While discussions with ZESA are ongoing, Denya indicated that the bank has previous experience in the sector, having supported the rollout of smart meters.
“We have been helping ZESA with smart meters and the programme is still going on,” he said.
While large corporations like ZIMASCO have successfully accessed Afreximbank funding for projects such as power expansion, Denya stressed the importance of supporting SMEs. “It is easy for big companies, but big companies do not create jobs. We want the SMEs to be creating jobs hence; there is still some work to be done,” he said.
The bank’s focus on SMEs is aligned with the Government’s efforts to promote rural development and job creation. However, the lack of well-prepared projects among SMEs poses a significant challenge.
Afreximbank’s intervention in the Zimbabwean economy is expected to have a positive impact, particularly in the infrastructure and industrial sectors. However, the success of these initiatives hinges on the ability of local businesses to develop bankable projects.-eusinessweekly
