THE Infrastructure Development Bank of Zimbabwe (IDBZ) has quietly merged four of its subsidiaries under a restructuring exercise, businessdigest has established.
Under the new structure, ID
BZ’s four subsidiaries — Zimbabwe Development Bank Financial Services, Zimbabwe Development Bank Ventures, The Fund and Zarvis will have their functions incorporated into the IDBZ.
They will effectively become divisions of the IDBZ.
The IDBZ was created following the transformation of the Zimbabwe Development Bank to finance infrastructural projects last year by the central bank.
The bank is majority-owned by government, which has indicated that it could gradually reduce its shareholding in IDBZ.
“Government has hinted that it will gradually reduce its shareholding to allow greater participation by foreign and local private investors,” a source said.
IDBZ, launched in August last year, had experienced a number of hitches after minority shareholders refused to acquire additional shares because of lack of confidence in the project.
IDBZ chief executive officer, Charles Chikaura, last week advised all staff members that all correspondence to the four subsidiaries should be directed to the IDBZ as the operations were now part of the bank.
“Essentially, the new structure has done away with ZDB Financial Service Ltd and ZDB Ventures Private Ltd and divisionalised these operations under a new division called private sector projects,” Chikaura said in a June 15 memo to staff.
IDBZ was launched to complement government’s efforts in the provision of infrastructure development finance.
It intends to harness resources from both local and foreign investors.