Country Report Zimbabwe April 2011

Economic performance: IDC agrees a US$30m facility for Agribank

In a further boost for the agricultural sector, the Industrial Development Corporation (IDC) of South Africa has signed a US$30m facility agreement with Agricultural Bank of Zimbabwe (Agribank), the first transaction of its kind since the two countries signed the Bilateral Investment Promotion and Protection Act in 2010. Agribank says it will use the six-year facility to on-lend to its clients, with the bulk of the money going to firms in the agri-business, manufacturing, and mining sectors, while US$10m has been allocated to the Industrial Development Corporation of Zimbabwe. However, the loan has been structured to ensure that a large portion of the funding will be used by Zimbabwean companies to purchase South African goods and services.

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