Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

ADC invests in Zim’s Agribank

IDC invests in Zim’s Agribank

March 24 2011 at 11:21am

The Industrial Development Corporation of South Africa (IDC) has signed a 
US$30 million facility agreement with Agricultural Bank of Zimbabwe 
(AgriBank), the parties said on Thursday.

The deal was arranged by SA’s Musa Capital and Zimbabwe’s Neverseez Capital 
and the signing took place on March 18.

This was the first transaction of its kind since the signing of the 
Bilateral Investment Promotion and Protection Act (BIPPA) between South 
Africa and Zimbabwe in 2010, the statement said.

“BIPPA seeks to create favourable conditions for investment between South 
Africa and Zimbabwe; provide security of tenure to South African investments 
in Zimbabwe; and unlock opportunities for the Zimbabwean local industry to 
access lines of credit from South Africa.

“In that context, the IDC Agribank deal is a significant step towards easing 
for the Zimbabwean financial services sector the liquidity constraints 
resulting from years of hyper-inflation and will, overall, assist in 
boosting economic activity in Zimbabwe,” the statement added.

AgriBank said it would use the six-year term facility from the IDC to 
on-lend to its blue-chip and medium-sized clients, some of which were listed 
on the Zimbabwean Stock Exchange – with a focus on increasing their 
production capacity.

However, US$20 million of the facility was allocated to firms who operated 
in the agri-business, manufacturing, and mining sectors while US$10 million 
would be on-lent to the Industrial Development Corporation of Zimbabwe.

The loan was structured to ensure that a large portion of the funding would 
be used by Zimbabwean companies to purchase South African goods and 

“The IDC facility will, therefore, also provide revenue opportunities to 
South African firms,” the parties said.

“Because it will help to induce productive capacity in several key sectors, 
we see the IDC facility as a watershed transaction,” Zimbabwe’s finance 
minister, Tendai Biti commented.

“It will also signal that Zimbabwe truly is open for business and that South 
Africa continues to play a supportive role in Zimbabwe’s economic recovery.”

Somkhosi Malaba, CEO of Agribank, agreed that the transaction was 
significant in addressing the disablement of the banking sector resulting 
from the past ten years of the country’s economic history.

“Obtaining capital from sources such as the Afrieximbank, which has just 
provided US$70 million to the banking sector, and from institutions like 
IDC, will add momentum to the positive trend in Zimbabwe’s economic 
recovery,” Malaba said.

The IDC’s divisional executive, resources sectors, Ufikile Khumalo said: 
“The financial services sector plays a critical role in any economy and, 
given the central role that Agribank has historically played inthe 
agricultural and industrial sectors, in enterprise development, and in job 
creation, IDC views this investment with optimism in respect of accelerating 
the progress of the Zimbabwean economy.” – I-Net Bridge


Tobacco sales fetch US$258m

Tobacco sales fetch US$258m    Herald 3/7/2020 Herald Reporter Tobacco sales have reached 110 million kilogrammes worth US$258 million, with deliveries to contract companies and

Read More »

Agric tops micro-finance loan book

Agric tops micro-finance loan book  Herald 12/9/2019   Mr Chitambo Fradreck Gorwe Business Reporter Good rains anticipated countrywide during the 2019/20 farming season, have seen agriculture

Read More »

New Posts: