HARARE: Harare City Council has secured $1,7 million from ZB Bank to fund its business ventures, most of which are under-performing. The money will be used to fund five projects, which include City Parking, Sunshine Meats, Pest Control, Harare Mabvazuva Village and the development of Harare House as an upmarket event facility.
The businesses were formed to contribute to the revenues of the city. According to recent minutes of the joint Finance and Development and Business Committee, acting town clerk Mrs Josephine Ncube said the loan facility was to develop specific projects under a strategy called Go-It-Alone. The total amount required for the project funding was $4 500 000 and Coronation Park land valued at $4 000 000 was offered as collateral.
“Council approves the offer of Coronation Park land as collateral security to ZB Bank to secure a loan of $1 700 000 for enhancing the operations of City Parking, Sunshine Meats, Pest Control, Harare Mabvazuva Village and the development of Harare House as an upmarket event facility,” read the minutes.
“Various institutions were approached and among them ZB Bank, who are the bankers for City Parking and Sunshine Meats, responded and offered a loan facility of $1 700 000 for City Parking and $600 000 for Sunshine Meats.”
During the discussions, city finance director Mr Justin Mandizha highlighted that before release of the title deeds for Coronation Park, a comprehensive analysis of current performance of the business, cash flow potion and revenue projections would be undertaken.
