IDBZ resolute in supporting NDS1

Published: 12 September 2023
The Infrastructure Development Bank of Zimbabwe (IDBZ) says projects with an estimated value of US$68,8 million were committed to the bank's project pipeline during the half year to June 2013 as the Group continues to identify opportunities in infrastructure development.

According to chief executive officer, Mr Zondo Sakala, the bank 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's focus sectors.

"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.

"There was also significant progress towards the completion of ongoing housing projects, which will result in housing units and fully serviced stands in Harare and Bulawayo, respectively," he reported in a commentary on the Group's half-year 2023 financials.

He said the bank has supported players in the infrastructure value chain, which includes quarrying and electricity distribution.

"The support for various projects led to employment creation, improvements in people's livelihoods, and improved access to energy and transport," he added.

Mr Sakala said the bank will accelerate infrastructure development by leveraging Government support to harness resources from development partners (DPs) and the private sector.

During the first half of 2023, the bank managed to raise resources for infrastructure development and the support of the players in the infrastructure value chain, equivalent to US$3,73 million.

The funds were deployed to projects such as the Bulawayo Student Accommodation Complex (BSAC) (US$1,34 million), Eyestone Quarry (US$1,38 million), Bluff‑hill Cluster Homes Development (US$0,78 million), and Willsgrove Park Housing Phase 2 (US$0,23 million).

The bank said a fundraising programme for the Lupane Student Accommodation Complex (LUSAC) of US$8,9 million is in progress.

Other projects include 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, and Glen Forest Housing Development US$6 million.

Mr Sakala said the bank's resource mobilisation efforts are anchored on the availability of bankable projects; therefore, investment in the preparation and packaging of projects is indispensable. He said during the period under review, the bank disbursed US$1,07 million towards project preparation and packaging activities.

By the end of June, the bank said one project worth US$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.

He noted that, in support of players in the infrastructure value chain, the bank's loan book reached US$3,4 million by the end of the reporting period, and the growth of the book remains constrained by the economy's liquidity challenges and macroeconomic volatility.

In terms of bank capitalisation, Mr Sakala said the bank is grateful for the capital injections of $2,5 billion, equivalent to US$1,97 million, by the Government and the Reserve Bank of Zimbabwe (RBZ) in the first half of 2023.

"However, the bank's capital position deteriorated due to the rapid depreciation of the Zimbabwe dollar witnessed in the second quarter of 2023," he said.

During the period under review, the bank recorded a historical profit before tax of $25,8 billion compared to a profit of $3,7 billion in the same prior year period, benefiting mainly from fair value gains on investment properties and impairment recoveries, which were complemented by the implementation of cost containment measures.

The banks total assets increased by 620 percent during the period under review compared to December 31, 2022
- The Herald
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