IDBZ bank loan book reaches US$3,4m HY

The Infrastructure Development Bank of Zimbabwe (IDBZ) is playing a key role in supporting various players in the infrastructure value chain as its bank loan book reached US$3,4 million during the half year to June 2023.

Beneficiaries include quarry and electricity distribution sectors among others resulting in the bank generating massive employment.

The bank’s acting board chairman, Dr Kupukile Mlambo said the infrastructure bank which has embarked on various high-impact projects countrywide has remained resolute in supporting the attainment of the country’s Vision 2030 and the National Development Strategy 1 (NDS1) through the development and implementation of various projects in the Bank focus sectors.

“The bank has supported players in the infrastructure value chain that includes quarry and electricity distribution. The support to various projects led to employment creation, improvement in people’s livelihoods and improved access to energy and transport. The bank will accelerate infrastructure development through leveraging Government support to harness resources from Development Partners (DPs) and the Private Sector,” he said in the Group’s half-year 2023 financials.

He added: “By the end of the reporting period, the Bank had reached practical completion of the Bulawayo Student Accommodation Complex (BSAC) which will house more than 1 000 tertiary institution students in Bulawayo.

Dr Mlambo said there was also significant progress towards completion of on-going housing projects which will result in housing units and fully serviced stands in Harare and Bulawayo respectively.

The multi-purpose three-block flats complex dubbed “Bulawayo Students City” has 516 rooms, 264 for males and 252 for females with a capacity to accommodate 1 032 students.

The project is expected to alleviate the accommodation shortage for tertiary institution students in Bulawayo and students are expected to move in before the end of the year.

The facility is self-contained and has fast food outlets, shops, salons and sporting facilities.
Rental charges at the facility are said to be US$90 per month catering for electricity, water and Wireless Fidelity (Wi-Fi) connectivity while the facility offers twin-room student accommodation with a bed, inbuilt wardrobe as well as a desk and chair.

The past two decades have recorded a surge in the number of enrolments at universities which now have an estimated 70 000 students with only 11 000 having accommodation provided by the institutions.

The Government has called for increased investment in the learning space, accommodation facilities, recreational and other supporting facilities.

Dr Mlambo said the Bank has remained steadfast in its efforts to build strong partnerships with cooperating partners and private sector investors.

These partnerships, Dr Mlambo said, will allow the bank to benefit from technical support and afford it an opportunity to access co-financing opportunities and credit facilities.

The bank’s chief executive officer, Mr Zondo Sakala said in the period under review, the bank continued to identify opportunities in infrastructure development guided by its focus sectors and mandate in response to the country’s Vision 2030 and NDS1 targets.

During the reporting period, projects with an estimated value of US$68,8 million were committed to the Bank’s Projects Pipeline.

The projects include Athol Apartments (US$4,6 million), Dabuka Village Double Storey Apartments (US$9,1 million), Clipsham Primary School (US$2,1 million), Clipsham Hotel (US$12,0 million), MOHNSA Shelter Afrique Advisory (US$25 million), Glen Forest Housing Development (US$6 million) and MoNHSA SDR Loan – US$10 million.

Mr Sakala said the Bank’s resources mobilisation efforts are anchored on availability of bankable projects and therefore investment in the preparation and packaging of projects is indispensable.

To that end, during the period under review, the Bank disbursed U$$1,07 million towards project preparation and packaging activities.
By the end of June, one project worth $6 million had been successfully developed for bankability and approved for funding.

“More projects under preparation and development are expected to reach bankability by the end of the year,” he said noting that fundraising programme for the Lupane Student Accommodation Complex to be built at an estimated cost of $8,9 million is in progress

The bank was established through the IDBZ Act to champion sustainable infrastructure development in Zimbabwe through mobilisation of resources, capacity building, knowledge generation and sharing in support of national efforts for inclusive socio-economic development.-chronicle