IDBZ to offer RDCs loans

THE Infrastructure Development Bank of Zimbabwe is planning to offer loans for developmental purposes to rural district councils countrywide, an official has said.

Initially, the IDBZ had been offering loans to councils with city, municipality and town status.

The bank’s mandate is to provide long-term and medium-funding for infrastructure projects.

In Mashonaland West province, the Mhondoro-Ngezi Rural District Council is likely to be the first beneficiary among the RDCs in Zimbabwe.

In an interview, Mhondoro-Ngezi RDC chief executive Mr Itai Mawonde said the bank had approached his council for possible funding.

“The bank approached us saying they now want to start funding rural district councils. IDBZ officials said in their plans, our council is supposed to be the first rural local authority to benefit from the initiative,” he said.

“Authority was also sought for management to negotiate with the bank to assist our council with loans for servicing stands and roads.”

Mr Mawonde said IDBZ officials have always assured council that they would move to Mhondoro-Ngezi after completing negotiations with the Karoi Town Council.

“After Karoi town, we will be the first to receive loans from the rural district council side. However, negotiations are still underway,” he said.

Karoi Town Council and Kariba Municipality have so far benefited, with the former striking a $14 million property development deal with IDBZ that is already underway.

IDBZ has a medium-term strategy, which largely focuses its operations towards infrastructure development in the energy, transport, water and sanitation, ICT and housing sectors.

Zimbabwe requires $14 billion for development and rehabilitation of the country’s dilapidated infrastructure.