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Business Reporter

The Infrastructure Development Bank of Zimbabwe has been renamed Infrastructure and Development Bank of Zimbabwe to reflect its expanded mandate beyond just infrastructure development, but providing support to all economic sectors.

By expanding its scope beyond just infrastructure development, the renamed bank can now play a more comprehensive role in driving economic growth, the bank said.

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“Our stakeholders are hereby notified that in terms of the Finance Act, 2023 (No. 13 of 2023), the bank has been renamed from Infrastructure Development Bank of Zimbabwe to Infrastructure and Development Bank of Zimbabwe with effect from  January 1, 2024.

“The change of name was necessitated by the need to have a name that reflects the bank’s broader mandate which incorporates infrastructure and, at the same time, promote developmental financing across all sectors of the economy,” the bank said.

According to the bank, the transition is expected to enhance the bank’s mandate which enjoins it to promote economic development and growth,  through the development of infrastructure including, but not limited to, roads, dams, water reticulation and utilities.

It will also enhance the development of institutional capacity in undertakings as well as supporting development projects and programmes in all sectors of the economy.

The renamed bank will prioritise water and sanitation, housing, irrigation development, transport, energy as well as the secondary focused-sectors encompassing health, education, tourism and Information Communication Technology.

The bank will also look at deepening partnerships and strengthening its balance sheet through implementation of various capitalisation initiatives and also broadening funding sources, scaling up funding support to the private sector by funding agri-businesses, mining and metals production, and various manufacturing businesses in automotive and transport equipment, chemicals, medical and industrial mineral products; and textiles and wood products sub-sectors.

In addition, it will deepen human capacity in the areas of climate finance, project preparation and structuring and project management and  enhancing the bank’s systems and ICT platforms to foster agility, efficiency, and innovation. 

“By scaling up funding support to the private sector, the Infrastructure and Development Bank of Zimbabwe will strengthen financial sustainability. A stronger private sector performance will ensure diversified short-term income to augment the Bank’s long-term infrastructure income.

“The private sector support will entail advisory services, structured finance transactions, equity investments and use of de-risking instruments to expand sources of income.

“Key to the success of the private sector operations will be innovation and adaptation to the dynamic operating environment by churning out appropriate products.”

The I&DBZ as a DFI will play a key role in the shift to low-emission, and climate resilient infrastructure.

As such, the transition will also allow the bank to take part in the financing of development programmes with the support of bilateral and multilateral institutions.

“With the world moving from global warming to global boiling, there is more urgency than ever to unlock the capital needed for the transition to a net-zero global economy.

“This will result in increased funding commitments, and deployment of finance for climate and sustainable development in the most efficient and effective way possible.

“The transition will therefore see increased activities in climate change mitigation and adaptation, as well other environmental objectives such as biodiversity,” the bank said.

The IDBZ was established in August 2005 through an Act of Parliament as a successor institution to the Zimbabwe Development Bank (ZDB). The ZDB was set up in 1983 with a mandate to mobilise internal and external resources to support economic development in all sectors. This entailed the provision of capital for the expansion or modernisation of existing enterprises or the creation of new enterprises.

The objective of establishing the IDBZ as a successor to ZDB was to focus the Bank’s mandate on infrastructure development as an anchor for supporting the socio-economic development. The absence of a DFI that focused on infrastructure development prompted the Government to transition the ZDB to the IDBZ.

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