IDCZ increases size of revolving loan facility to businesses

The Industrial Development Corporation of Zimbabwe (IDCZ) has increased the size of its revolving credit facility from $24 million since it began the lending role in 2019 to over $2,2 billion, Industry and Commerce Minister Dr Sekai Nzenza has said.

IDCZ, the state-owned industrial conglomerate with an investment portfolio in sectors such as fertiliser, chemicals auto-mobile and cement assumed an extended role of Development Financial Institution to provide cheap loans to start-ups.

This is in line with the Government’s thrust to expand the country’s industrial base.

“The entity assumed the lending role in 2019 with US$24 million seed money and to date the revolving funds have grown to $2,2 billion,” said Minister Nzenza in a report to the Cabinet recently.

“Over 2000 new jobs have been directly created and a further 7000 preserved across the benefiting sectors.”

The funding is strictly for companies in the manufacturing sector and those in value addition and beneficiation of local raw materials. This can be in the form of debt, equity, or any other mutually agreeable suitable structure for the projects at hand.

Priority is given to those pursuing projects in line with the National Development Strategy, import substitution and exports generating investments.

As a DFI, the funding is designed to be more patient and concessionary in order to cater for customers who may not be able to qualify for commercial funds from the banks, according to IDCZ.

IDCZ identifies and develops industrial project opportunities into commercially viable entities in partnership with local, regional and international investors. Apart from relying on Government funding, IDCZ said it DCZ will go onto the market to source additional funding, both onshore and offshore to augment available resources.-ebusinessweekly