Online Reporter
Nelson Gahadza
Senior Business Reporter
The Infrastructure Development Bank of Zimbabwe says in its efforts to mobilise climate finance, it has developed and submitted to the Green Climate Fund a concept note on the Horticulture Investment Fund for Enhanced Climate Resilience.
Outgoing group chief executive Mr Zondo Sakala, in a statement of financials to June 30, 2025, said the proposal, which is now under GCF review, involves the establishment of a US$50 million fund to provide financing to the horticulture sector, primarily targeting smallholder farmers and small enterprises.
“Additionally, the bank is actively developing further Concept Notes for submission to the GCF, focusing on low-emission transportation and renewable energy solutions,” he said.
IDBZ is a Government-owned development bank in Zimbabwe, mandated to fund long- and medium-term funding for key infrastructure projects, including in the areas of transportation, housing, energy, water and sanitation.
Mr Sakala said during the reporting period one project, the Catholic University of Zimbabwe Student Accommodation, reached bankability with a total value of US$13,8 million.
He said the bank continues to advance the preparation of additional projects to ensure they become bankable and investment-ready.
“However, these efforts are constrained by limited funding for project preparation, which restricts the Bank’s ability to expand its project pipeline at scale,” he noted.
On the other hand, the bank successfully mobilised US$180 000 to support project implementation with allocations directed toward the Mabuto Villas-Hatfield Cluster Housing Development (US$170 000) and the Kadoma Cluster Housing Development (US$10 000). In addition, Mr Sakala said the bank disbursed US$1,3 million to support development initiatives across housing, agriculture and tourism sectors. He indicated that the bank’s performance in the first half of 2025 was satisfactory despite the liquidity and funding challenges faced.
“However, fundraising efforts were constrained by low investor confidence, limited market liquidity and heightened competition from private sector projects.
“To address these constraints, the Bank plans to explore trade finance-based bond issuances in the second half of the year, aligning its instruments more closely with investor risk-return preferences,” said Mr Sakala.
During the period under review, the bank received capital injections amounting to ZiG66,5 million, approximately US$2,48 million, from the Ministry of Finance, Economic Development and Investment Promotion as part of the ZiG150 million allocation towards IDBZ capitalisation under the 2025 National Budget.
“Additionally, the Reserve Bank of Zimbabwe (RBZ) also contributed capital equivalent to US$2,07 million. The bank remains actively engaged with its shareholders to pursue additional capitalisation initiatives aimed at strengthening its balance sheet and lending capacity,” said Mr Sakala.
During the period under review, the bank’s net revenue was ZWG54,6 million, a recovery from a negative ZWG3,7 million in the prior period. Total assets increased by 1 percent during the reporting period due to subdued loan book growth.
“Despite these challenges, the bank recorded improved performance in the sale of housing units and residential stands. Sales are expected to strengthen further in line with projected macroeconomic growth and stability,” said Mr Sakala.
He noted that proceeds from these property sales are anticipated to enhance the bank’s liquidity and overall financial performance in the second half of the year.
“To ensure financial sustainability, management continues to closely monitor the bank’s liquidity position and cost structure, while prioritising projects with shorter revenue cycles — particularly within the infrastructure value chain financing space,” said Mr Sakala.
During the period under review, some of the bank’s projects under implementation include the 07 on Pagomo Phase 1 Cluster Houses Development, now at 82 per cent completion.
The project is located in Monavale, Harare, and phase 1 consists of the construction of 10 housing units.
“Upon completion of Phase 2, the project will deliver 40 four-bedroom cluster duplexes with supporting infrastructure, including paved parking, water, sewer and electricity,” said Mr Sakala.
He said the Honister Cluster Housing Development civil works are at 95 percent completion, and the project is located in Borrowdale, Harare, on bank-owned land.
The project is a joint venture with private institutional investors, and it entails the construction of 72 cluster housing units, that is, 26 three-bedroom and 46 two-bedroom units with full infrastructure such as water, sewer, paved roads and electricity.
