IDBZ sets up $5m project preparatory fund

Published: 10 December 2017

THE Infrastructure Development Bank of Zimbabwe (IDBZ) has established a Project Preparatory and Development Fund with $5 million seed capital aimed at financing bankable project proposals in the country.

A bankable project/document is one with the capacity to attract the attention of investors and partners. Speaking at the 1st Green investment catalyst round table in Victoria Falls last week, IDBZ legal advisor Mr Daniel Makono said the fund was established after realisation that Zimbabwe and Southern Africa has a shortage of such funding for preparatory work for projects such as conducting feasibility studies and exploration. The fund was established last year with a seed capital of $2,5 million, Mr Makono said.

"We established the fund in 2016 with a seed capital of $2,5 million and a further $2,5 million was added to the fund this year. This capital was actually drawn from our own internal resources," he told the gathering.

Speaking in an interview later, Mr Makono said plans were underway to increase the fund to $20 million.

"We are looking forward to getting additional funding from development finance institutions or internationally because we have realised that it's important to have a dedicated fund, which we can use to assist developers of projects to have bankable documents," he said.

Mr Makono said part of the fund has since been accessed by some project developers. To have a bankable project, developers should come up with a feasibility study, a critical initial stage of any capital project. Some of the projects by the bank are in housing and energy sectors.

"The fund is there to make sure that promoters make bankable projects. It came after realisation that there is a shortage of such funding and that bankability has been a major bottleneck in attracting investors. Our target is to have a sizeable amount of this dedicated fund," he said.

Mr Chitambo said they have approached the Government, embassies and other partners to mobilise funds. He said IDBZ was engaging a consultant for some energy projects. Beneficiaries of the fund will have to pay 10 percent of the total cost of the project preparation cost.
- sundaynews

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