In June of this the Industrial Development Corporation of South Africa unveiled a six year US$30 million line of credit to two of Zimbabwe’s Development Finance Institutions, Agribank and the Industrial Development Corporation (IDCZ).
The Industrial Development Corporation of Zimbabwe Limited received US$15 million of towards the recapitalization programme of its investments.
The IDCZ Group Chief Executive, Mr Mike Ndudzo said the development loan had been applied to those investments with the highest probability of transforming their business models and operations to service and repay the loan.
“Our plan and commitment is to ensure performance on this lifeline and to ensure that the IDCZ qualifies for additional and further funding. We have put in place policies, procedures, structures and controls to ensure the funds are disbursed for the purpose they are lent, and are ringfenced to ensure generation of value and cashflow to service the loan” he said.
The IDCZ had estimated a funding requirement of US$104 million for the whole Group to raise capacity utilization from the current 35 percent to at least 60 percent.
Mr. Ndudzo said this was the beginning of a long and fruitful relationship between the two institutions.