26 June 2012

Zambia: IDC Injects U.S.$2 Billion in Mining

THE Industrial Development Corporation (IDC) has provided funding to the mining industry in Zambia to a tune of US$2 billion in the last five years.

And the financing institution is expected to approve funding for 10 more projects ranging from tourism, mining and energy sectors.

IDC senior project manager for mining and beneficiation unit Ndoba Vibetti said the institution had approved finance to the value of $2 billion in the mining sector in Zambia with other projects under consideration.

IDC has a book value of $4.7 billion excluding undrawn commitments of $3 billion and has so far approved finance amounting to $5 billion in the last five years across Africa.

In an interview in Lusaka, Dr Vibetti said IDC had provided development finance to Lumwana Mine, Konkola Copper Mine (KCM) and previously invested in First Quantum Minerals in Zambia but and the Democratic Republic of Congo (DRC).

"We have funded projects amounting to $2 billion in the last five years in Zambia and we also have other projects in the mining, energy, tourism and mining service sectors which are under consideration and the funding portfolio will increase once the projects are approved," Dr Vibetti said.

He said IDC aims to be a catalyst in driving industrial development by proactively funding high-impact projects as well as taking up higher risk funding in the early stages of the projects.

"We aim to lead the development of viable new industries and use our diverse industry expertise to drive growth in priority sectors," he said.

Dr Vibetti said in the last five years, IDC had sealed 1,075 business transactions and created approximately 158, 000 job opportunities.

He said finance to small and medium-scale entrepreneurs (SMEs) represented almost 65 per cent of the total number of approvals.

Dr Vibetti said IDC was committed to providing development finance on the continent in order to contribute sustainable businesses with significant development impact.

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