eBusiness Weekly
Panashe Chikonyora
The Industrial Development Corporation of Zimbabwe (IDCZ) is offering loan facilities ranging from a minimum of $3 000 000 to a maximum of $20 000 000 to manufacturers, exporters and importers as part of its development financing role.
In a statement released yesterday, IDCZ invited bankable applications from all parts of the country for consideration for funding under the industrial development fund.
This follows recent resourcing of IDCZ by Government, during last year’s 2020 National Budget announcement whereby Finance and Economic Development Minister Mthuli Ncube allocated $240 million to the corporation.
According to Minister Ncube the money was meant to assist IDCZ to “undertake its mandate effectively” by enabling it to revive its development financing role, after the corporate aligned itself to Government’s move to restructure its parastatals and state enterprises.
This will see IDCZ reducing its shareholding investments in various companies.
Some of the companies it holds investments in include Chemplex, Modzone, with foreign investment partners like Indians and Singaporeans in Surface Wilmar Investments and Olivine Holdings and local conglomerate TA Holdings at Sable Chemicals and the Zimbabwe Fertiliser Company.
In the statement IDCZ stated that those suitable for the loans include manufacturers, exporters and importers.
“Targeted beneficiaries should be corporates (brownfield/greenfield) who are into manufacturing and value adding activities especially those who are exporting or have potential to export and import substitution with high employment impact,” said IDCZ.
IDCZ said the loans to be disbursed shall among other terms attract an interest rate of 15 percent per annum which may be “reviewed in line with the operating environment”, a once off administration fee of two percent of the loan amount will be applied “payable at disbursement” and a “Loan tenure of 12 months for working capital and 24 months for capital expenditure”.
Meanwhile, the corporate said applicants should acquaint themselves with the fund’s list of application requirements and submit a bankable business plan which includes all other applicable requirements together with a duly completed application form to the IDCZ.
IDCZ’s mandate include establishing and conducting any industrial undertaking, facilitating, promoting, guiding and assisting the financing of; new industrial undertakings (including small and medium scale), schemes for the expansion, better organisation and modernisation of and the more efficient carrying out of operations in existing industries and industrial undertakings, as well as to implement Government policy in regard to decentralisation of industry, choice of technology and any other matter which the Minister (Minister of Industry and Commerce) may specify.
The Corporation also undertakes the development of management and technical expertise in the carrying out of industrial undertakings; and takes measures to acquire direct and effective control of its investments and to that end to ensure that industrial development in the country are planned, expedited and conducted on sound business principles.
