Govt finalising youth fund requirements

Rudo Muchedzi Herald Correspondent

Government is finalising procedures required for citizens to access the National Venture Capital Fund (NVC), which was introduced to support bankable business ideas which are not being supported by banks.

The move comes as concerns mount that delays in releasing the funds will result in the $500 million kitty being chewed by inflation.

The NFC, which was announced in the 2020 National Budget, is designed to assist  start-up enterprises and create employment opportunities and stimulate economic growth.

Speaking before the Portfolio Committee of Youth, Sport, Arts and Recreation chaired by Mr Mathias Tongofa (Zanu PF) last week, Ministry of Finance and Economic Development chief director of communication Mr Clive Mphambela said the delays in disbursing would not see the plan affected by inflation.

He said Treasury was alive to inflation challenges, but it was not a big issue since it is a short-term problem while the NVF was a long-term investment plan.

“We are taking our time to make sure that all the required procedures needed in accessing the funds are put in place and we cannot rush to give out the funds to applicants due to inflation as we intend to ensure that the funds are issued out in a more transparent manner.

“As Treasury, our responsibility is to ensure that public resources are put to good use. The NVC is meant to support people with business ideas but do not have shareholders to qualify for bank loans. This will be an ongoing exercise and when the $500 million is exhausted, Government will avail more funding,” he said.

Mr Mphambela said applications by beneficiaries will be done online.

Government has since engaged the Financial Securities Exchange (Finsec), a newly established trading platform for small and medium enterprises, to make a submission on the matter.

A ministerial statement outlining the procedures for submitting applications would be released soon.

Further, a steering committee comprising various Government representatives has been set to assist in prioritising projects so that they benefit the economy.