Published on : Tuesday, May 6, 2014
The Infrastructure Development Bank of Zimbabwe (IDBZ) has received a $10 million loan for tourism from the Industrial Development Corporation of South Africa. IDBZ chief executive Mr. Charles Chikaura told The Herald Business last week that disbursement to successful borrowers is anticipated to begin no later than June this year.
Mr Chikaura, said, “In its latest endeavours the bank has signed a six-year line of credit with IDC South Africa in the sum of $10 million targeting the tourism and hospitality sector. The facility is at very competitive rates in line with Governmentpolicy to lower lending rates for the productive sectors of the economy.”
According to the Zimbabwe Tourism Authority, Zimbabwe needs as much as US$1,5 billion over the next five years to fully recapitalize.
The industry established remarkable potential, particularly benefiting from the successful co-hosting of the 20th Session of the United Nations World Tourism Organisation General Assembly by Zimbabwe and Zambia in 2013. However, the sector, still faces some challenges, for example, perceived country risk, poor connectivity of local destinations and absence of a revolving fund to support hospitality industry especially Small to Medium Enterprises and Co-operatives in tourism.
Government is targeting to grow the contribution of tourism to the gross domestic product from 10 percent to 15 percent next year, under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation. In 2013, according to ZTA, tourists arrivals increased by 2 percent growth to 1,83 million from 1,79 million 2012. In spite of the increase, the arrivals are yet to reach the peak of 2,2 million tourists recorded in 1999.
IDBZ is a State-owned infrastructure bank, has been facing challenges in mobilizing lines of credit as it remains under the sanctions list of the Office of Foreign Assets Control, an agency of the US Department of Treasury and the perceived country risk. But, despite the many challenges that the bank faces in the form of inadequate capitalisation and being an OFAC designated entity, it has recorded some positive achievements in the last three years.
Tags: Zimbabwe
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