Govt revives National Venture Capital Fund

By ZBC Reporter
THE Government is operationalising the National Venture Capital Fund which will provide seed funding to start-up businesses across various sectors of the economy.

In the 2020 national budget; the treasury announced a national venture capital fund to encourage good entrepreneurship and innovation by SME’s.

A five hundred million Zimbabwe dollar facility was then set aside to ensure that the fund serves its purpose.

The National Venture Capital Fund chairperson, Clive Mphambela told ZBC News on Wednesday operational modalities are being finalised.

“Government will prioritise projects that have the capacity to meet technological development, job creation, import-substitution, forex generation, promote gender development among many others,” said Mphambela.

At least $500 million has been set aside by Treasury for the establishment of a National Venture Capital Fund to finance start-up projects by the youths.

With the informal sector increasingly growing in significance for the Zimbabwean economy, the need for venture capital for start-ups has become more apparent.

In Zimbabwe, there were venture capital firms, which were mainly independent partnerships or private equity funds and most of them shut shop due to the economic downturn and only a few continue to exist.

The government has also held talks with entities such as the Empowerment Bank, Women’s Banks, Small and Medium Enterprises Development Corporation (SMEDCO), CBZ, Financial Securities Exchange (Private) Limited (FINSEC) and Norfund as possible fund managers.

A capacity-building workshop on innovation and technology transfer will be held to ensure that SME’s have a clear understanding of the objectives of the fund.