LISTED financial services group, ZB Financial Holdings, has raised more than $80 million out of the targeted $150 million this year under the second phase of the Emergency Road Rehabilitation Fund (ERRF).

The financial services provider was retained by the Zimbabwe National Road Administration (Zinara) as lead advisor for the ERRF after it raised $105 million in the first round of the fund. Following the successful mobilisation of $105 million under the ERRF for Zinara in 2017, the group has been retained to raise a further $150 million.

In a recent interview during the company’s corporate event in Bulawayo, ZB head of corporate services, Mr Shadowsight Chiganze, said that the bank was aiming at availing $150 million by the end of its financial year, towards road rehabilitation.

“We are proud to be working with Government and last year during the first phase of our programme, we raised a total of $105 million. We set the bar higher for this year and pegged our budget towards the ERRF at $150 million. We are working well with Zinara and are committed to contributing to infrastructure development in the country,” he said.

ZB group chief executive officer, Mr Ron Mutandagayi, speaking at the same function, said partnership with Zinara was meant to speed up the process of rebuilding infrastructure in the country, to attract investors and boost the economy.

“We have so far managed to raise just above half of our target for this second phase of this programme and we are excited to be embarking on this journey with our partners,” said Mr Mutandagayi.

The ongoing programme has resulted in significant improvement in the country’s road infrastructure.

Early last month, ZB said it had entered into a joint venture arrangement with South Africa’s Neo Capital as the group seeks to raise $1 billion over the next two years to upgrade local road infrastructure.

Phase one of the ERRP, which commenced on March 12 last year, prioritised preservation of the road infrastructure from further deterioration and safe passage for travellers.

Phase two of the programme is focusing on major rehabilitation works, reconstruction of damaged bridges including preventive periodic maintenance works and rehabilitation of failed sections of the road network.

Economists contend that the present state of infrastructure in the country, which has declined due to limited investment and lack of maintenance, is one of the most significant constraints to economic growth targets. Dilapidated infrastructure has largely hampered Foreign Direct Investment (FDI) flows into Zimbabwe, especially as it drives up the cost of doing business.