Harare, (New Ziana) – The Industrial Development Corporation of Zimbabwe (IDCZ) on Friday invited local companies involved in value addition to apply for loans if they required financial support.
The funding, under the IDCZ’s Industrial Fund (IF), is strictly for working capital and capital expenditure and will be for a minimum of ZW$3 million up to a maximum of ZW$20 million per company.
“The Industrial Development Corporation of Zimbabwe (IDCZ) is inviting bankable applications from all parts of the country for consideration for funding under the Industrial Fund,” the IDCZ said.
“This follows recent resourcing of the fund by the government of Zimbabwe.”
Government, in its 2020 national budget, said it would capitalise the IDCZ to the tune of ZW$240 million to allow the institution to effectively undertake its mandate.
Under the current scheme, the IDCZ said funding would be availed on a ‘first come first served basis’ and is targeted at greenfield or brownfield projects that have a potential to generate exports or promote import substitution.
The loans are at an interest rate of 15 percent per annum, and have a tenure of 12 months for working capital and 24 months for capital expenditure.
The IDCZ’s mission, according to its website, is “to add value through industrial processes and capital formation (foreign direct investment) to create wealth, employment and industrial development in Zimbabwe.”
Its mission is “to Identify, develop, mobilise resources and finance industrial project opportunities into commercially viable ventures in partnership with local, regional and international investors, and technology and market access partners.”
The Industrial Fund is a revolving facility, in which beneficiaries are expected to pay back the loans, with built reserves used to fund others in future.
The Zimbabwean government is promoting export generation and value addition, which are key foreign currency generation activities.