IDC to revive financing role

Published: 17 January 2014

THE Industrial Development Corporation of Zimbabwe is seeking seed capital to revive its development financing role, targeted at supporting value addition and beneficiation.

IDC made a $100 million bid in the 2014 National Budget but could not get the allocation due to tight fiscal space, general manager Mr Mike Ndudzo said yesterday.

IDC is a wholly State-owned entity mandated to spearhead industrialisation in strategic sectors.

Its role is to add value through industrial processes and capital formation (foreign direct investment) to create wealth, employment and industrial development in the country.

Some of the companies that IDC has interest in include Chemplex, Zimglass, Olivine Industries, Amtec, Surface Investment and Willowvale Mazda Motor Industries.

"The $100 million bid made in the Budget was for the purposes of resuscitating the development financing role provided in the Act," said Mr Ndudzo.

"This was meant as loan and equity support for beneficiation and value addition projects from the investing public and was seed money to start the function, to be supported by foreign direct investment and local and offshore bonds and lines of credit."

Mr Ndudzo said while IDC was considering raising capital through disposing some of its assets, the environment and financial state of some of its investment was not conducive.

With funding available, IDC intends to venture into value adding projects such as batteries from lithium, catalytic converters from platinum, stitched leather for export to luxury car manufacturers, drilling tools and wire from industrial diamonds among others.
- herald