THE National Venture Capital Company of Zimbabwe (NVCCZ) is seeking external funding to support its initiative to finance local startups and small to medium enterprises (SMEs), businessdigest can reveal.
The NVCCZ was established under the Treasury to provide financial support to startups and SMEs with bankable projects. Its primary goal is to bridge the funding gap and catalyse innovation and economic growth across the country.
Seeking external financial support comes as the government faces financial constraints, saddled with urgent and increasing expenditures due to macro-economic challenges.
Tinotenda Kambasha, chief executive officer at NVCCZ, told businessdigest that the company's goal was to help SMEs become investor-ready, enabling them to secure funding.
“We will definitely seek external funding. Our goal is to attract other investors. At the moment, we are a government grant-funded institution, but we are actively working with development partners, pension funds and international investors,” Kambasha said.
“We need to demonstrate that we are a reliable partner, capable of managing investment funds responsibly and delivering returns. In the next few years, we aim to operate independently of Treasury funding by attracting investors who see the value and impact of our work in communities.”
He said the amount raised, which he declined to disclose, would depend on available opportunities and the projects they support.
“While we do not have a specific target, we are looking to raise capital based on the needs of viable projects and the willingness of partners to work with us,” Kambasha said.
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The paper understands that applicants can apply for loans of up to US$100 000.
He said areas of interest included manufacturing, agriculture, mining, and information communication technology.
“We are open to all innovative ideas, even in less traditional sectors such as the arts. Our goal is to support projects that have the biggest impact across the country,” Kambasha said.
However, with current liquidity challenges, coupled with heavy forex regulations that may limit the amount of returns investors see, foreign creditors may not be so eager to put their money into Zimbabwe.
“Liquidity issues are a global challenge, not just a Zimbabwean one. The key is that good money follows good projects. While funding may be limited, it is still being allocated somewhere. Our focus is on ensuring that startups and SMEs are investor-ready so they can attract funding,” Kambasha said.
“One of the biggest challenges in Zimbabwe is that many SMEs are not adequately prepared to receive investment. They lack proper financial records, compelling business narratives, thorough market research, and clear distribution strategies.”
He said the state entity’s role was to help them address these gaps, making them attractive to investors and ensuring they can secure funding.
“We are open to all innovative ideas, even in less traditional sectors such as the arts. Our goal is to support projects that have the biggest impact across the country,” Kambasha said.
However, with current liquidity challenges, coupled with heavy forex regulations that may limit the amount of returns.
The informal sector is now estimated to make between 60% and 70% of all economic activity, generating annual revenue of US$14,2 billion, according to the Reserve Bank of Zimbabwe, hence the government’s support.
