Business Writer

The Industrial Development Corporation of Zimbabwe (IDCZ) plans to invest in a sugar and ethanol project in the Lowveld area.

The project aims to process sugar cane grown in the Lowveld area of Zimbabwe into sugar, ethanol, and other value-added products, according to the state-owned Industrial conglomerate in a statement seen by this publication.

IDCZ said the physical and climatic conditions in the Lowveld favour the production of sugar cane.

“The land is generally flat, characteristic of the Lowveld and this allows for the efficient use of equipment.

“The soils are characteristically deep, well drained, relatively unleached and of high base saturation,” it said.

The demand for sugar in Zimbabwe and abroad continues to grow. Zimbabwean producers have been concentrating on the local market while the export market quotas remain unfulfilled, thus presenting an opportunity for additional players on the market, said IDCZ.

IDCZ plans to implement the project in partnership with other players on the farm production while IDCZ’s interest will be on the processing side.

“Local producers cannot meet the ethanol blending requirement for the country while the export market for ethanol is also very lucrative,” it said.

IDCZ has an investment portfolio in sectors such as fertilizer, chemicals, automobiles, property, cooking oil, and cement.

In 2017, it assumed an extended role as Development Financial Institution to provide cheap loans mostly to start-ups and enterprises with potential to export.

The funding is strictly for firms in the manufacturing sector and those in value addition and beneficiation of local raw materials. This can be in the form of debt, equity, or any other mutually agreeable suitable structure for the projects at hand.

Priority is given to those pursuing projects in line with the national development strategy, import substitution and exports generating investments.

As a DFI, the funding is designed to be at concessionary rates to cater to beneficiaries who may not be able to qualify for commercial funds from the banks, according to IDCZ.

IDCZ identifies and develops industrial project opportunities into commercially viable entities in partnership with local, regional, and international investors. Apart from relying on Government funding, IDCZ said it will soon go onto the market to source additional funding, both onshore and offshore to augment available resources.