Kudakwashe Pembere Business Reporter
The Infrastructural Development Bank of Zimbabwe says it will provide US$54 million to telecommunications firm TelOne and the Zimbabwe Power Company to support their initiatives on infrastructural development in this country. IDBZ chief executive Mr Charles Chikaura said this after the official opening of the Zimbabwe Development Finance School in Harare yesterday. His bank acknowledged efforts by the two firms to reduce the infrastructural deficit Zimbabwe is facing.
“We are planning to come back in January next year to give US$54 million to TelOne and the Zimbabwe Power Company. ZPC will be given the money for their contribution in the Kariba South project while for TelOne the money will be for the national fibre optic project,” he said.
He added that the Tokwe-Murkosi project is progressing well as Government had prioritised the completion of the project.
Mr Chikaura said the regional Development Finance Resource Centre has participated actively in the development of the Sadc Regional Development Fund from the feasibility study on the current discourse on the operationalisation of the fund.
“Technical inputs from the DFI Network and DFRC have been instrumental in the decision making on such matters as capitalisation, shareholding, legal status, voting powers and governance structure of the regional fund among other issues.
“The fund is at its operationalisation phase and hopefully it will open its doors in the not so distant future,” he said.
He said as development finance institutions they viewed the fund as the precursor to the establishment of a fully-fledged regional development bank and its expedition would be most welcome.
Mr Chikaura added that DFIs play a critical role both as investors and the mobilisation of resources for investment in critical socio-economic projects particularly those characterised by long gestation periods and low returns which under normal circumstances are less attractive to banks.
DFRC chief executive Mr Stuart Kufeni told delegates that the DFRC is committed to capacitate DFIs and other development partners to effectively undertake their developmental mandates and be on the forefront of driving the development agendas of the region’s economies.
Zimbabwe cluster of development which comprises the IDBZ, Industrial Development Corporation of Zimbabwe, Agribank and the Small Enterprises Development Corporation identified key areas of project appraisal and risk analysis, financial modelling and due diligence.
These three areas will be discussed for the next three weeks at the ZDFS for successful project development and implementation.