The Government has launched a new Industrial Development Fund (IDF) with an initial capital of ZiG100 million, aimed at providing crucial support to the country’s manufacturing sector.
This fund is designed to inject “patient capital” into key industries to promote value addition, reduce reliance on imports, and create jobs.
Speaking on the new initiative, Minister of Industry and Commerce, Mangaliso Ndlovu, stated that the fund will be managed by the National Venture Capital Company of Zimbabwe (NVCCZ). This arrangement follows a new Memorandum of Understanding (MOU) between the Ministry of Industry and Commerce and the Ministry of Finance, Economic Development and Investment Promotion, ensuring that Treasury funding is directly channeled to high-value manufacturing chains.
Minister Ndlovu confirmed that the Treasury has committed to consistent support for the fund until it becomes self-sustaining. He highlighted that the IDF is a privately focused fund intended to provide both financial and technical assistance to critical sectors.
The decision to create the IDF was prompted by the fact that the Industrial Development Corporation (IDC), which previously held a similar role, is now under the control of the Mutapa Investment Fund. Both ministries agreed that a new, dedicated fund would be the most efficient way to direct resources towards nationally important industries.
The fund’s main goal is to bolster strategic sectors like manufacturing and agro-processing, which will help create stronger local value chains. This move is a direct response to the government’s push for increased local production and a reduction in imports.
The government is prioritizing the development of key value chains that offer “low-hanging fruit” for economic transformation. These include industries such as:
Fertiliser
Soya
Cotton
Dairy
Sugar
Leather
Pharmaceuticals
Bus and truck assembly
Engineering iron and steel
Plastic waste recycling
NVCCZ chief executive Tino Kambasha explained that the IDF will focus on “high-impact projects” that align with the national agenda. He noted that to ensure effective management and prevent misuse of funds, every project will undergo a thorough due diligence process.
Kambasha also mentioned that resources will be disbursed on a “drip-feeding basis” rather than as a single lump sum. This staged approach is designed to ensure that the funds are used for their intended purpose and not for non-essential items.
He expressed confidence that the fund’s robust management will attract further investment from external partners, including pension funds and development organizations like the African Development Bank. Looking ahead, Kambasha envisions the creation of specific funds for other sectors, such as mining, all managed under the broader National Venture Fund to build a diverse portfolio.