Priority Sectors

Infrastructure Focus Sectors

The IDBZ Act provides for a sharp focus on infrastructure development, within a framework in which various institutions have been given specific areas of focus in order to limit duplication and wasteful overlaps. In pursuance of its core mandate, and a resolute quest for effective delivery and results, the IDBZ will focus on the development of the following infrastructure sectors: energy; transport; water and sanitation, ICT and housing (basic off and on- site infrastructure).



Energy and Power Supply

  • Construction of new and rehabilitation of existing power plants,
  •  Construction of new and rehabilitation of existing transmission (national and regional) and distribution grid networks
  • Construction and rehabilitation of oil and gas pipelines


  • Roads,
  • Airports
  • Railways
  • Marine (Water transport systems)

Water and Sanitation

  • Dams construction,
  • Water for irrigation,
  • Installation of new and maintenance of existing water pipelines,
  • Construction of new and rehabilitation of existing water treatment plants,
  • Municipal water and sewer projects


  • ICT (Optical fibre) backbone and distribution infrastructure

Housing (site servicing of land only)

  • Water and sewer reticulation
  • Roads construction,
  • Electricity distribution infrastructure

Energy Projects

Sustainable economic growth is anchored on affordable, reliable and stable supply of energy to industry and households. Zimbabwe is currently facing power shortages with estimated reliable generation of about 1049 MW against an estimated suppressed peak demand of 2200MW. Currently power imports stand at around 400 MW. Industry and Commerce have struggled partly due to acute power shortages being experienced in the country. The Government of Zimbabwe has prioritised energy projects as one of the key enablers to economic growth and development. The prioritised projects include new plants and the optimization of existing plants and are expected to add additional power to the grid as follows:

  • Expansion of Kariba South Hydro-electric Power Station (KSPS) Unit 7&8 - 300 MW;
  • Expansion of Hwange Thermal Power Station Unit 7&8- 600 MW;
  • Repowering of three small thermal power stations namely; Harare, Bulawayo and Munyati power stations- 200MW;
  • Gairezi Mini Hydro - 30 MW; and
  • Dema Emergency Peak Plant - 200 MW.

In line with the IDBZ mandate to mobilise resources for infrastructure projects, the Bank has to date raised US$38.8 million to fund refurbishment works at Kariba South Power Station to enhance the escrow capacity of KSPS under the expansion project loan structure from China Exim Bank. The injection of US$38.8 million into the existing plant was one of the conditions precedent for the Zimbabwe Power Company to unlock the US$535 million project funding from China Exim Bank Facility for the expansion project. It is heartening to note that as at the end of February 2016, the project was at 41% completion with full project delivery expected before end of 2018.

Furthermore, the Bank also secured a mandate from ZPC to raise US$11.2 million towards its 15% contribution of the EPC costs plus insurance cover for the Harare Power Station Repowering Project. The project is expected to be funded 85% with a concessional loan amounting to US$70.2 million from India Exim Bank through the EPC contractor. The Bank managed to raise the full amount of the required contribution on behalf of ZPC through a 2014 five year semi-annual bond issue with a coupon of 9% per annum.

Following the successful issuance in 2012 of a three year US$30 million bond with a coupon of 10% per annum required to kick start the Zimbabwe Electricity Transmission and Distribution Company’s (ZETDC) prepaid metering project, the ZETDC once again mandated the Bank to raise an additional amount of US$15 million in November 2014 in order to continue with this important energy demand side management project whilst facilitating the financial sustainability of ZETDC through enhanced collections from energy consumers now under a pre-payment platform. The Bank successfully raised the US$15 million required by ZETDC in 2015 through a five year semi-annual bond issue with a coupon of 8% per annum.

The total US$45 million raised by the Bank facilitated ZETDC to connect more than 500 000 customers to the prepaid metering system by end of 2015. The project has both economic and commercial benefits that include: the conservation of energy by consumers; increase in revenue collection from pre-paid consumers; reduction of non-performing debts; improved credit worthiness of ZETDC through a stronger balance sheet; increased capacity by ZETDC to undertake capital projects on grid and distribution infrastructure maintenance which go towards reduction of technical losses; ability to finance imports and reduction in non-technical losses among others.

The Bank issued the following bonds to support energy projects since 2012 as shown in Table 2:


Table 2: Bonds issued by the Infrastructure Development Bank Zimbabwe since 2012 in Support of Energy Projects, IDBZ, 2016 

Name of Bond/Bills

Issuer & date issued


Coupon (per annum)

Size of Issue

Amount Raised to date

Infrastructure Bond- - Financing Pre-paid metering project

IDBZ (2012-2013)

3 years



US$17.8m (public issue)

US$12.2 (pvt placements) (investors were fully paid).

Infrastructure Development Bond Issue – 20 November 2014- Financing Pre-paid metering project

Infrastructure and Development Bank of Zimbabwe (20 November 2014).

5 years- Semi- annually


US$ 15 Million

US$ 15 million

Infrastructure Development Bond Issue – 20 November 2014- Financing Kariba South – US$38.8 Million and Harare Power Station – US$11.2 million

Infrastructure and Development Bank of Zimbabwe (20 November 2014).

5 years- Semi- annually


US$ 50 Million

US$ 50 million

The performance of these bonds has helped drum up investor confidence in support of the IDBZ infrastructure bonds instruments and the underlying quality projects needed to fulfill the Bank’s mandate.


According to the Bellagio Housing Declaration (2005) housing is more than shelter as it is a powerful engine that creates opportunity and economic growth. In its National Housing Policy (1999), the Government of Zimbabwe argues that housing should not be extricated from the communities in which it is found. For this reason, discussion about housing in the context of socio-economic development includes; water supply, sanitary provisions, electricity supply, sewer reticulation, ICTs for connectivity and roads provision. There is serious pressure in the country's major cities due to rapid growth in urban population through rural to urban migration, natural urban population growth against limited resources to support urban infrastructure development resulting in a severe strain on urban services. Given the population surge, there is an acute shortage of affordable housing even for the poor. This therefore calls for action to be taken to arrest deteriorating living conditions among urban dwellers. In response to the national and international calls, the Bank has focused on development of onsite and offsite infrastructure to facilitate sustainable housing development. Below is a brief outline of the housing projects which the Bank is currently engaged in and future plans in the sector.

Bank Housing Projects

  • Clipsham Views- Masvingo

The project entails the development of 205.7 hectares of land into residential, commercial, industrial and institutional stands on Lot 2 of Clipsham, a site located some 5km outside Masvingo town along the Masvingo – Beitbridge highway. The project is targeted at developing 704 low density residential stands, 26 service industrial stands, 24 institutional stands and 16 commercial stands. Clipsham Views is the newest and most exciting housing development in Masvingo with beautiful scenic views and unique landscape.

The scope of works on the project includes construction of on-site infrastructure comprising roads, storm-water drainage, water reticulation and electricity reticulation and attendant off-site infrastructure, i.e. bulk water piping and electricity sub-stations. The total development cost for the whole project is estimated at US$6.7 million. As of 16 September 2016 the Bank had disbursed a cumulative amount of US$ 1, 520,000.00 towards implementation of the project. The residential stands from the project which range in size from 1390 square meters to 2500 square meters are already selling at US$ 13 per square meter, with an initial sign-on deposit of 25% of total selling price and balance payable over ten years at an interest rate of 13% per annum. IDBZ offers prospective home owners a Home Saver Account which is affordable and tax free to facilitate the accumulation through savings of the required initial deposit over a period of up to 6months for individual applicants. The servicing of the stands is expected to be completed in December 2016.

  • New Marimba- Harare

This project is located in Harare, near the existing Marimba suburb and is expected to deliver 340 serviced stands, with 202 high density stands and 138 medium density stands. The total development cost for the project is estimated at US$2 million and as at 16 September 2016, US$ 369,000.00 had been disbursed towards implementation of the project. Site handover to the Contractor, Masimba Holdings, was done on the 3rd of May 2016 to facilitate commencement of site servicing works.  Stands from the project are all sold out.


In the last quarter of 2015, the Bank issued its maiden Housing Bond of US$5 million through private placement to finance the development of two housing projects, namely New Marimba Park in Harare and Clipsham Views in Masvingo. The projects are part of a broader intervention by the Bank in the housing sector where the Bank is focused on funding on-site and off-site infrastructure including roads, water and sewerage facilities and electricity.

  • Collaboration with the Urban Development Corporation (UDCORP) for Development of New Towns

The Bank has partnered UDCORP in the development of new towns on agreed sites within the proximity of some of the major urban centres and these projects include the following:

Phase 1:

  • Norton – Knockmalloch (6 000 stands)
  • Manyame (80 000 stands)
  • Chishawasha B (40 000 stands)

Phase 2:

  • Bulawayo (Umvutcha B) (20 000 stands)

The designs of the new towns are expected to cater for all classes of the working class home seekers as well as take into account the prevalence of the informal sector. The new towns will also be on mixed use concepts which will accommodate clusters and flats on up to 10% of the land conceded for the project site. The IDBZ will be responsible for project structuring, mobilisation of resources and financial structuring whereas UDCORP through the Ministry of Local Government Public Works and National Housing (MLGPWNH) shall facilitate site acquisitions of suitable land to implement the project as well as obtaining the necessary development permits and approvals.

National Housing Projects

In 2013 the Bank concluded an agency agreement with the Government of Zimbabwe through the then Ministry of National Housing in which the IDBZ manages, monitors and oversees the implementation of projects under the National Housing Fund including handling the collections of instalment payments by beneficiaries towards the purchase of sold units. The following projects are under the Bank’s monitoring and oversight in terms of this arrangement with Government:

  • Mbizo 22 (Kwekwe)
  • Dzivarasekwa (Harare)
  • Carrick Creigh (Harare)
  • Sunway City (Harare)
  • Chikanga (Mutare)
  • Paradise Park (Marondera)
  • Parkland Mews (Bulawayo)

The Bank in partnership with local authorities and the National Housing Fund implemented the following housing projects: Mbizo 22 which produced 200 serviced high density residential stands, Willowvale which had 78 units of walk up flats and Graniteside Park Flats with 60 units of walk up flats.

  • Future Projects

In addition to the projects already highlighted the Bank is also targeting the development of housing projects in Marondera; Lupane; Gweru; Chinhoyi; Bulawayo and Mutare through various structures which will include but not limited to joint venture arrangements with local authorities and private developers with uncontested land.

In this regard and in order to fund the projects, the Bank was granted authority by the Ministry of Finance and Economic Development to issue Housing Bonds of up to US$100 million over a 5-year period to finance various affordable housing projects across the country. The Bank will thus be issuing further tranches of Housing Bonds to fund housing projects from different sites as and when projects are fully developed and ready for market.

These housing sector interventions, which are on a national scale, are necessary to meet the high demand for fully serviced residential stands in most towns and to address the national backlog set at 1.25 million housing units in the country’s main urban centres and also to fulfil the ZimAsset target set for housing delivery by 2018.

Water & Sanitation

All life, human, social and economic activity is dependent upon the availability of water in good quality and sufficient quantity. Water utilization in Zimbabwe is mainly in agriculture (crop and livestock watering), manufacturing industry, mining, household use (rural/urban), power generation (hydro-electric/thermal power), transport, wildlife sustenance, fisheries (including sustenance of aquatic life) and tourism.

Water is a critical element in achieving social justice, empowerment and poverty reduction under the Sustainable Development Goals, (World Bank, 2008). Water plays a pivotal role in the economy of Zimbabwe but it must always be safe to utilize (National Water Policy, 2013). The adequacy of the water resource is a limiting factor in development of agricultural, urban growth, industrial and mining activities. On the social end, water and adequate quality water provision is also a key defining factor in rural poverty reduction. The country’s GDP growth is positively correlated to the country’s hydrological cycle/seasonal rainfall pattern. Effective water management has therefore become a compelling imperative which is very critical to the country’s economic growth prospects. In a bid to ensure that the agricultural sector and farming activities are not adversely affected by dry spells and droughts from erratic rainfall patterns, the country’s water management policies and practices need to be strengthened to fully realize economic growth potential. It is in light of this that IDBZ is focused on infrastructure development in the water sector.

Set out below are brief outlines of projects the Bank is currently actively engaged in as well as future plans for the sector, starting with priority national water projects (the Water Resources and Infrastructure Investment Conference, June 2015, Report - The document is in /Root/IPD Folder).

Tokwe Mukorsi Dam

The Dam, with a capacity of 1,803 billion Mega Litres (ML) and a yield of 364 000ML per annum, will support the development of about 25 000 ha of land for irrigation around Tokwe and Runde rivers in the Lowveld region and the construction and installation of a 15MW hydro-electric power station when completed. Upon completion, the project will also facilitate setting up of small irrigation farms on communal lands and production of sugar to maintain an annual raw sugar production of 200 000 tons. 

In order to fund outstanding works on the dam construction, the Bank was mandated by ZINWA to raise US$30 million to finance completion works on Tokwe Mukorsi Dam (Information Memorandum - The document is in /Root/IPD Folder).

The Dam, which is 95% complete, was funded from the fiscus through the Public Sector Investment Programme (PSIP). Under its implementation and monitoring arm, the Bank is responsible for handling disbursements to the Contractor against project milestones. To date and as part of its agency role, the Bank has disbursed US$245million from the PSIP towards the construction of the dam. 

In August and November 2015 the Government of Zimbabwe issued Treasury Bills with a face value of US$75million to reduce arrears to the Contractor and facilitate resumption of works. The Bank successfully liquidated the TBs raising proceeds of approximately US$65million to cover commitments to the Contractor, Salini Impregilo International.

A capital raising programme through issuance of infrastructure bonds by the Bank under the ZINWA mandate will complement Government’s efforts especially in view of the severely limited fiscal space. The Bank is optimistic that collaborative efforts with Government will yield positive results to fully resource the completion of this Dam.

  • Other Dams and Water Projects

Government of Zimbabwe, working together with various stakeholders in the water sector including ZINWA as its implementing arm, identified priority national water sector projects which were showcased at a Water Resource and Infrastructure Investment Conference in Harare (June, 2015). The Conference was meant to conscientise stakeholders and prospective investors on the need for the private sector to partner and assist Government, through joint venture arrangements and/ or public private partnerships (PPPs) in the development especially of commercially viable water projects with confirmed market off-take mainly based on urban demand for potable water consumption.  The following were identified as priority dam and water supply projects:

  1. Epping Forest (Nyamandlovu Aquifer) - Bulawayo;
  2. Chivu Water Supply Project – Chivhu and Mashonaland East;
  3. Muda Nyatsime Dam- Chitungwiza and Harare;
  4. National Matabeleland Zambezi Water Project- Matabeleland and Bulawayo;
  5. Kunzvi- Musami Dam– Harare;
  6. Kondo Dam- Save River- Odzi;
  7. Kudu Dam – Kadoma, Sanyati;
  8. Nyatana Dam – Mutoko;
  9. Lubongo Dam – Gweru- Shurugwi;
  10. Bindura Dam – Bindura and Mashonaland Central

In terms of its overall interventions in the water and sanitation sector the Bank is working with ZINWA to assist in developing to bankability some of the projects on the priority list, namely, the three (3) major dam projects aimed at improving water (both potable and industrial water) supply to Harare, Chitungwiza and Bulawayo and the Matabeleland region. These water projects are: Kunzwi-Musami, Muda-Nyatsime, and Matabeleland- Zambezi Water Project respectively. The Zambezi Water Project total cost is approximately US$1.720billion and is proposed to be funded under Zimbabwe’s participation in the US$60 billion Chinese facility for Africa.  The latter project is also expected to facilitate accelerated irrigation and industrialization of the dry Matabeleland region over and above the potential for power generation projects from renewable and clean energy sources.

In addition to any new projects which are Greenfield, the Bank is also looking at assisting ZINWA to complete several on-going dam projects whose completion has been stalled due to funding and budgetary constraints. The Bank holds a ZINWA mandate to issue a Water Bond specifically to fund commercially viable water sector projects and rehabilitation of the pumping and distribution infrastructure. When the projects are completed, it is expected that the intended beneficiaries will also optimise on their business activities at the same time creating capacity to meet water usage bills in order to ensure sustainable and continued investment by ZINWA and other role players in the water sector infrastructure to improve dependability of the water resource for its multiple usage.

Transport Sector

The Bank recognises the role that the transport sector plays for economic growth in the country and the Bank’s focus in this sector is to facilitate construction and/or rehabilitation of roads, airports, rail, inland waterways and pipeline transport systems. The IDBZ remains acutely aware of the fact that the transport sector is one of the key enablers of economic growth and development. Adequate and viable transport infrastructure stock seamlessly links cities and towns, connecting people with economic opportunities and tourist attractions apart from connecting businesses with local and regional markets, thus facilitating regional integration and reducing the cost of doing business. In that regard, and in line with its mandate, the Bank is currently working with the Government of Zimbabwe to come up with a  value for money financing model for the dualisation and tolling of one of the country’s major highways and regional trunk roads, Beitbridge–Harare–Chirundu Road. The Bank in conjunction with the Government of Zimbabwe is currently reviewing a draft contract of one of the EPC Contractor pursuant to the signing of the Framework Agreement. The Bank as the Lead Financial Advisor will assist in the identification of potential financiers for the project and the execution of the investment and financing structure in support of this transformational project which on completion will deliver enormous value to the region as well as allowing for improved traffic flow on the North-South Corridor.

In addition to a robust road network, a reliable rail network offers the much needed support to economic activities as it provides efficient transportation for bulk commodities (mining, industrial and agricultural produce) and offers a cheaper alternative to the commuting public. For this reason, the Bank considers the resuscitation of the National Railways of Zimbabwe (NRZ) as paramount to addressing the high cost of doing business and spurring economic development, as well as for promotion of regional integration. To this end, IDBZ, in liaison with both the Ministry of Transport and Infrastructural Development and NRZ, is working on the best strategies to recapitalise and revive the country’s rail sector. It is estimated that NRZ requires in excess of US$2 billion worth of investment for its rolling stock and to rehabilitate its entire network and extend the existing rail network so as to respond adequately to the transportation needs of its customers as well as provide a reliable link to regional and/or international transport routes. The Bank is currently working with the NRZ towards the mobilisation of at least US$635 million to kick-start the rolling stock and rail network rehabilitation investment programme as planned by the National Railways of Zimbabwe. The initial programme consists of rehabilitation of the existing railway line network, replacement and/or modernisation of signalling and communications equipment, acquisition of new rolling stock (locomotives, coaches and wagons) and refurbishment of old ones, as well as repairs of bridges, workshop equipment, buildings and other collateral and supporting infrastructure. The Bank will also continue facilitating the financing of quick turnaround projects such as the construction of weigh-bridges, acquisition of tarpaulins to cover commodities in transit and repair of wagon wheels to capacitate the NRZ to effectively facilitate movement of critical imported grain as the Government moves to avert the imminent hunger as a result of the 2015/16 drought season.

The Bank has been involved over the years in the maintenance and rehabilitation of the country’s airports. Its major role has been monitoring and implementation of aviation sector projects funded through the Government Public Sector Investment Programme (PISP). The Bank looks forward to continue with its agency role in future projects and also working with both the Civil Aviation Authority of Zimbabwe and the Ministry of Transport and Infrastructural Development in the identification of new investors to support the completion of rehabilitation of the Harare International Airport and construction of the control tower at the J.M. Nkomo International Airport in Bulawayo.

Through its mandate, the Bank will also mobilise for various projects in the transport sector to ensure that all transport modes are upgraded and that they offer efficient transport services. To this end, the Bank is also involved in the review of the National Transport Master Plan, a draft of which was produced by the Canadian Pacific Consulting Services (CPCS) commissioned by Government. According to CPSC the Master Plan seeks to  provide a short, medium and long term investment plan for sustainable development of transport infrastructure and services to support growth and wealth creation taking into account green and inclusive growth.