Zimbabwe has a host of organisations that have names abbreviated to four-letter acronyms. One such example is the Industrial Development Corporation of Zimbabwe commonly referred to as the IDCZ. The IDCZ is a fund that was established to invest in strategic industries and activities to help move the nation forward in terms of industrial development as the name suggests. We’ll look at the IDCZ in closer detail to understand it and then we will look at some issues you should be aware of if you intend to seek funding from the IDCZ.
The Industrial Development Corporation of Zimbabwe is a wholly-owned government corporation that acts as a development finance institution. It was established by a 1963 Act of Parliament. The fund is self-financing with a revolving facility that looks to perpetually fund development in Zimbabwe. The Industrial Development Fund is geared towards projects in mineral beneficiation, stock feed production, schools, laboratory equipment, silicates manufacturing, engineering, timber processing, water, construction materials, furniture, meat processing, and food and beverage manufacturing.
The Corporation finances or invests in (equity or joint venture partnerships) enterprises that are both brownfield and green-field which are into manufacturing and value-adding activities in line with its statutory mandate.
The Corporation will therefore in line with Government policy seek to finance value chains identified below and any other such not listed including those that may arise in the future.
The National Development Strategy (NDS1) has put greater emphasis on identified value chains to catalyse economic growth and the value chains that will be prioritized include Soya bean, Cotton, Leather, Fertilizer, Pharmaceutical, Bus and truck assembly. Other value chains that have been identified and pertinent to the revival of the economy include but are not limited to Sugar, Dairy, Packaging, Iron & Steel, Timber, Tobacco, Industrial Hemp
Prioritization will also be given to those applications or investment proposals not necessarily value chains but which exhibit the following characteristics;
- Exports generation or potential for generation of foreign currency
- Import substitution to save foreign currency
- Job creation and/or retention
- The exploitation of local raw materials/value addition and beneficiation.
- Compliance with environmental regulations
- Devolved/decentralized projects with a component of local endowment resource utilization
The Corporation shall not accept or consider applications or joint venture partnerships that are not in line with this eligibility criteria.
LOAN APPLICATION REQUIREMENTS
- Application letter requesting financial assistance and purpose.
- Detailed Business proposal/ company profile (e.g. History & progress to date; shareholding structure; organizational structure; products; services; customers; markets; profiles of directors & management; SWOT analysis; suppliers, competition; industry analysis; key success/risk factors; business strategy etc )
- Cash flow projections for 3 years
- Audited past financial statements for at least 3 years i.e. (Profit & Loss A/Cs + Balance Sheets).
- Latest Management Accounts
- Company bank statements for the last six months.
- Copies of Certificate of incorporation, Memo & Articles of Association; CR14, CR2 & CR6 forms, valid tax clearance certificate and extract of board resolution to borrow.
- Security being offered (copy of title deed) including valuation report on the property provided from a reputable valuer.
- Insurance policy on the property (in case of fixed property) and valid lease agreement where premises are not owned.
- Copies of current orders/contracts at hand and invoices of things to be bought by loan showing quantity and value
- Current Debtor/Creditor age analysis
- Personal details of all directors/ shareholders i.e.
- Profiles of the executive directors and key management;
- Copy IDs and proof of residence
- List of current indebtedness to other financial institutions.
- Facility limit;
- Type of facility;
- Tenure of the facility;
- Utilization to date;
- Balance on the facility.
- Any other relevant information in support of your application.
N.B All the relevant information as outlined above should be submitted in full to the Industrial Development Corporation of Zimbabwe and the Corporation will not accept incomplete documentation.
For more information and contact details, you can go to the IDCZ website.