Business / Companies
Zimbabwe's IDC struggles to get funding
24 Apr 2015 at 07:15hrs | Views
The Industrial Development Corporation's subsidiary companies require $40 to $50 million for working capital finance, but tight liquidity and banks restructuring of balance sheets have made access to affordable funding difficult.
The units under IDC's expansive industrial empire, which cuts across a wide spectrum of sectors, are experiencing severe liquidity constraints as the rest of the economy, prompting the group to restructure its entire portfolio.
IDC general manager and group chief executive Mike Ndudzo said that the restructuring, under a four pronged strategy, was in progress and at different stages amid strong interest for its units from investors from the BRICS.
He would, however, not elaborate on the nature of discussions with the prospective investors whom he said had expressed interest and with whom the industrial group had since signed agreements not to disclose any details.
The restructuring includes reducing, selling-off and entrenching its positions, chiefly, to deal with financial limitations that have affected the units' operations before and after dollarisation of the economy in February 2009.
He said that the group had also entered into structured arrangements for toll manufacturing as part of numerous innovative initiatives the IDC boss said had enabled the group and its units to keep their heads above the water.
Ndudzo said that it was currently virtually impossible to get working capital support from banks battling to clean up their balance sheets and reduce non-performing loans as they position themselves for the interbank market.
The units under IDC's expansive industrial empire, which cuts across a wide spectrum of sectors, are experiencing severe liquidity constraints as the rest of the economy, prompting the group to restructure its entire portfolio.
IDC general manager and group chief executive Mike Ndudzo said that the restructuring, under a four pronged strategy, was in progress and at different stages amid strong interest for its units from investors from the BRICS.
He would, however, not elaborate on the nature of discussions with the prospective investors whom he said had expressed interest and with whom the industrial group had since signed agreements not to disclose any details.
The restructuring includes reducing, selling-off and entrenching its positions, chiefly, to deal with financial limitations that have affected the units' operations before and after dollarisation of the economy in February 2009.
He said that the group had also entered into structured arrangements for toll manufacturing as part of numerous innovative initiatives the IDC boss said had enabled the group and its units to keep their heads above the water.
Ndudzo said that it was currently virtually impossible to get working capital support from banks battling to clean up their balance sheets and reduce non-performing loans as they position themselves for the interbank market.
Source - The Herald
