A DUBAI lending company, Elbygare Global, has offered short and long-term finance for Bulawayo City Council’s infrastructure projects at a time the local authority is struggling to access affordable loans. BY NQOBILE BHEBHE
According to the latest report by council’s finance and development committee, Elbygare made the unsolicited offer in April.
It proposed to finance the upgrading of roads, energy, water and sewerage reticulation projects.
“The financial director reported that Elbygare Global (Pvt) Ltd was a company incorporated in Dubai as an off-shore lending company,” read part of the minutes.
The committee quoted the letter saying Elbygare was proposing to fund “land development up to housing solutions, roads upgrade and maintenance, water and sewerage reticulation projects, energy development solutions and income generating projects”.
“We believe that council has unlimited needs and we want to be part of the financial solution,” part of the Elbygare proposal reads.
“Our finance models are project-specific hence we offer both short and long-term finance (plus five years tenure) and our costs though project-specific will be comparable to multi-lateral institutions rates.”
The local authority has since given its officials the green light “to engage Elbygare Global (Pvt) Ltd on possible financing of council projects”.
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“Council granted the mandate to council officials to engage any financial institution that may offer funding of projects on competitive terms and report on substantive offer,” the minutes added.
The local authority recently indicated that it would initiate talks with a Mauritian financial institution in a bid to raise $26 million for urgent water and waste projects.
Council said it was attracted to Loita Capital Partners International due to a 20-year repayment period which has low interest.
Bulawayo needs the capital to “resolve its perennial water challenges by implementing a water and waste master plan”.
The Mauritius-based company is said to be a banking and investment firm with interests in Africa – particularly in South Africa, Zimbabwe, Uganda, Zambia and Kenya.
