Harare – The Infrastructure Development Bank of Zimbabwe (IDBZ) on Tuesday said the Government last week injected an additional $150 million equity capital into the bank.
IDBZ said the capital injection is testimony of the importance the Government places on the role being played by IDBZ in economic development and growth, and the improvement of the living standards of Zimbabweans through the development of infrastructure.
Last year the bank announced that it was seeking foreign shareholders to attain a $250 million equity capital by year end (2017).
During that time the bank’s capital position was $50 million and IDBZ CEO, Thomas Sakala said they were seeking foreign shareholding to bolster the capital base from partners such as the Development Bank of Southern Africa (DBSA).
Finance and Economic Development Minister Patrick Chinamasa in September last year acknowledged the bank required further support from Government, which would allow it to meet its goals.
“The bank’s strategic focus and developments on the ground require additional support from the Government so that the bank can continue to deliver on its mandate.
“Government will therefore further recapitalise the bank and this will be done by end of this year. But we are yet to decide on the quantum of recapitalisation,” he said.
In a statement IDBZ said a strong capital base for the Bank will enhance its efforts in championing infrastructure development through high impact investment in energy, transport, water and sanitation, information and communication technology and housing sectors.
“Government recognises that sustainable and inclusive economic growth and social upliftment can only be achieved on the back of a robust economic and social infrastructure.
“In this regard, IDBZ plays an important role in providing the necessary technical lead in packaging, marketing, resourcing and implementation of infrastructure projects. In addition, IDBZ shall ride on the strategic thrust by His Excellency, President Emmerson Mnangagwa of having a development oriented bureaucracy that is responsive to the needs and aspirations of all Zimbabweans.”
The Bank added that with the $150 million capital injected by Government, the Bank will now play its catalytic role as an enabler of national growth and transformation, thus assisting Government in meeting its policy objectives on infrastructure development and making important progress towards the attainment of Vision 20130 and the Sustainable Development Goals (SDGs).
IDBZ moved out of commercial banking to become a dedicated infrastructure development institution.
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