ZIMBABWE – The Industrial Development Corporation of Zimbabwe Limited (IDCZ) has begun availing loans to industry in a move set to revive some faltering firms as well as start up several greenfield bankable projects.
According to The Herald, the funding will see successful companies getting anything between US$1 million and US$5 million and will attract a nominal interest of 15 percent per annum making the fund lucrative in the face of about 50 percent interest which is being charged by most financial institutions.
This comes on when the Government had decided to resuscitate IDCZ’s lending function as a Development Financial Institution (DFI) and cabinet’s directive that the US$30 million allocated to IDCZ in the 2019 National Budget as seed capital be released and put to use.
IDCZ, through an invitation extended through the media, advised that it was on the market for bankable loan applications from all parts of the country and for which it was looking to provide funding for up to US$5 million.
The Development Financial Institution advised that its major interest which is in both brownfield and greenfield projects, will have a bias towards companies that are in the manufacturing and value adding sector.
Other companies and projects that will also have a priority are those with potential to export or are already exporting and or import substitute as well as those with high employment impact in line with Government’s employment creation drive.
“The Industrial Development Corporation of Zimbabwe Limited (IDCZ) is inviting bankable applications from all parts of the country for consideration for loan funding under the Industrial Development Fund,” said IDCZ.
“This follows recent resourcing of the fund by the Government of Zimbabwe. Consideration will be on a first-come-first-served basis.
“Targeted beneficiaries should be corporates (brownfield/greenfield) who are into manufacturing and value adding activities especially those who are exporting or have potential to export and import substitution with high employment impact.”
The IDCZ’s role in the economy is to add value through industrial processes and capital formation (foreign direct investment) to create wealth, employment and industrial development in Zimbabwe.