Government unveils fund to support value chains
THE Government has launched the Industrial Development Fund (IDF) to support the strengthening of domestic value chains and promote industrial growth. The financing facility will also anchor import substitution measures and increase the export of value-added goods.
In a virtual presentation at the Zimbabwe International Trade Fair (ZITF) International Business Conference held during the ongoing 65th edition of ZITF in Bulawayo yesterday, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube said resources had been set aside for the IDF.
“In the 2025 Budget Fiscal, the Government set aside resources to capitalise the new Industrial Development Fund (IDF). As much as ZWG100 million was provided for in the fiscal budget. The IDF, which is officially launched, will support value chains in pharmaceuticals, agro-processing, cotton and leather among others,” he said.
FINANCE, Economic Development and Investment Promotion Minister Professor Mthuli Ncube
Minister Ncube said the Government was also recapitalising the National Venture Capital Company of Zimbabwe, which was established to support start-ups and micro, small, and medium enterprises (MSMEs). The minister said the NVCCZ was providing equity finance and innovative financing solutions, tailored support for start-ups, early-stage, and growing businesses, as well as empowering the generality of Zimbabwean entrepreneurs. He said the NVCCZ was also fostering a dynamic and resilient business ecosystem and driving sustainable economic growth.
“ZWG108 million was set aside through the 2025 National Budget for the NVCCZ to support upcoming start-ups and MSMEs. The Government policy is focused on sustaining industrialisation and broad-based transformation, as part of the National Development Strategy (NDS1), while supporting productive value chains was a major focus of NDS1,” Minister Ncube said.
He noted that key interventions in the 2025 Budget Statement sought to consolidate gains achieved thus far, particularly in manufacturing, agro-processing and mining sectors. The aim, the Treasury chief said, was to increase domestic value addition and beneficiation to anchor economic transformation.
African Development Bank
“Industrialisation and value chains are central to national economic development and transformation. The importance of value chains in the economy includes driving industrialisation and economic growth, boosting export earnings and reducing the import bill, encouraging innovation and skills development, as well as promoting regional and global competitiveness.”
Minister Ncube said the manufacturing sector was also benefiting from support from the African Development Bank (AfDB), which had several targeted projects in 2025. The minister said international partnerships were also crucial for unlocking industrialisation.
“Government’s engagement and re-engagement efforts aim to foster these relationships, attract foreign investment and facilitate technology transfer for a modern, competitive industrialised economy.”
Commenting on the new IDF, Minister of Industry and Commerce Nqobizitha Mangaliso Ndlovu said affordable financing to support industry was critical.
Minister Nqobizitha Mangaliso Ndlovu
“We acknowledge that the current lending rates in our financial systems are way too high to support the productive sector. I am grateful to President Mnangagwa through the Ministry of Finance, Economic Development, and Investment Promotion, for launching the new IDF today (Wednesday).
“This is a step in the right direction, and through the NVCCZ, details will be made available on how to access the funding. This fund shall revolve, and l am happy that the Treasury has committed to replenishing this fund on an annual basis, which will see the fund grow),” he said.
He expressed hope that the fund will also help to attract private sector funding, guided by the good performance of the fund.
The conference was organised by the ZITF Company, in conjunction with the National Economic Consultative Forum (NECF) and Confederation of Zimbabwe Industries (CZI). Vice-President Constantino Chiwenga presided over the flagship event and officially opened the Indaba.-chroncile
