Business Reporter
THE Infrastructure and Development Bank of Zimbabwe (IDBZ) says severe off-site infrastructure deficits are undermining the viability of real estate projects and restricting access to institutional capital.
Addressing the Zim Real Estate & Construction Summit, IDBZ director (infrastructure projects) Dr Reggie Dangarembwa noted that missing infrastructure—such as roads, power, water, sanitation and digital connectivity—leads to higher up-front costs and project delays.
“Infrastructure must be funded and sequenced as part of the project—not treated as an afterthought,” he said, emphasising its direct impact on cash-flow visibility.
He said financial institutions required hard evidence rather than raw development concepts to approve funding.
Every project must pass three core tests before receiving financing: market demand, financial sustainability and execution capacity.
Dr Dangarembwa said developers must demonstrate independent demand, realistic pricing and verifiable absorption evidence.
He said financial cases must include robust cost plans, net present values, internal rates of return and healthy Debt Service Coverage Ratios. Execution capacity requires secure legal approvals, competent delivery teams, and rigorous risk controls.
Dr Dangarembwa outlined six foundational pillars for a lender-ready dossier, including secure land rights, technical feasibility studies, enabling utilities, appropriate financing structures, ESG safeguards and clear risk allocation.
Noting the broader economic impact of proper planning, he highlighted that “the investment question is not simply ‘what does infrastructure cost?’ but ‘what risk and value does it change?'”
To bridge the transition from concept to commercial operation, Mr Dangarembwa emphasised the need for an adequately resourced project preparation and development facility.
Stakeholders were urged to utilise strategic delivery models such as Public-Private Partnerships, joint developments, and Build-Operate-Transfer arrangements to mobilise long-term capital.
