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Michael Tome Business Reporter
INFRASTRUCTURE Development Bank of Zimbabwe (IDBZ) says it expects to complete projects under implementation in the course of 2022 as the institution seeks to clear the projects backlog.
The government through its various arms has been rolling out a range of infrastructure projects encompassing roads, dam construction, agriculture, housing, and energy infrastructure.
To sufficiently fund the tasks, IDBZ says it embarked on a number of fundraising initiatives which included the issuance of US dollar linked bonds, and managed to raise $877,9 million (US$9,84 million) for project implementation.
On the other hand, an additional $719,8 million (US$6,62 million) was raised in 2021 through a $1, 75 billion rights Issue from the Treasury and the Reserve Bank of Zimbabwe (RBZ).
Ministry of Finance and Economic Development (MOFED) contributed $500 million while $219, 8 million was received from the RBZ.
As of this year, IDBZ indicated that Treasury injected a further $450 million in April 2022 and is expected to release the remaining $480 million in the course of the year in fulfillment of the government’s capital commitment under the rights issue.
Some of the projects underway include Lupane student accommodation complex project, Chinhoyi University of Technology student accommodation, Bindura University of Science Education Student accommodation, Catholic University of Zimbabwe student accommodation.
Headway on projects was stalled by Covid-19-induced lockdowns which led to general labour shortages, supply chain disruptions, and reduced working hours compounded by the parallel market exchange rate which continues to influence pricing of construction services and materials and this according to IDBZ has negatively impacted cost budgets for projects under implementation.
“The Bank achieved commendable progress on ongoing projects notwithstanding the macroeconomic pressures and the negative impact of the COVID-19 pandemic on project activities. Notwithstanding the negative impact of the COVID-19 pandemic on the Bank’s financial performance for 2021, the IDBZ is optimistic that the projects under implementation will be completed in 2022 and more business will be underwritten under the Bank’s private sector funding window,” said IDBZ Chief Executive Officer Mr Zondo Sakala in the 2021 annual report.
The bank’s execution of the projects is guided by the 2021-2023 work program and budget, with the theme “Transforming and retooling towards a DFI of Scale”.
Construction Federation Industry of Zimbabwe (CIFOZ) chief executive, Martin Chingaira said the construction sector has immensely benefited from the high and improved construction activity in the economy.
“The construction industry has been recording brisk business from the ongoing government projects. My membership is busy with the projects, this has automatically impacted employment countrywide as we have been realising growth in business lately,” he said.
Included in the lineup of the projects underway are Getjenge housing project in Plumtree, Spitzkop housing project in Gwanda, Baraza pavilion cluster homes project in Harare, Honister drive cluster homes project in Harare, Kanyemba Lodge Project in Kanyemba, Waneka phase three housing project in Harare, Tjibundule solar project in Plumtree, Wilsgrove phase two housing project in Bulawayo, the Grange of Toronto housing project in Penhalonga, Rooiport estate housing project in Chivhu and the Gutu Solar Project.
IDBZ is a government-owned development bank, mandated to fund long and medium-term funding for key infrastructure projects.
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