Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
In a step towards accelerating industrial growth and promoting domestic value chains, the Government has officially launched the Industrial Development Fund (IDF), a strategic intervention aimed at revitalising key sectors of the economy.
The Fund will be administered by the National Venture Capital Company of Zimbabwe (NVCCZ), marking a new era in targeted government support for industry.
The signing ceremony was held during the Zimbabwe Economic Development Conference in Bulawayo on Friday.
NVCCZ Chief Executive Officer Mr Tino Kambasha outlined the rationale behind the establishment of the Fund, noting that it represented a departure from previous models of industrial financing.
“Previously, Government used to allocate a grant to the Industrial Development Corporation of Zimbabwe, which has since been moved to the Mutapa Fund,” said Mr. Kambasha.
He explained that the Ministry of Finance, Economic Development and Investment Promotion (MOFEDIP), in collaboration with the Ministry of Industry and Commerce, had resolved to channel resources directly into the industrial sector through a structured investment model, rather than through traditional grant allocations.
“Since the grant was a national budget allocation, the Ministry of Finance, Economic Development and Investment Promotion (‘MOFEDIP’), together with the Ministry of Industry and Commerce have decided to channel the grant directly into industry through a managed structure aimed at making a return for the Government,” he said.
The IDF is set to operate under a performance-based, results-oriented structure, with NVCCZ tasked with carrying out rigorous analysis and due diligence on applicants seeking support under the fund.
“NVCCZ has been identified as a suitable government vehicle that can analyze and perform due diligence on deserving companies in the identified industries and value chains,” Mr. Kambasha said.
The CEO noted that the Fund’s operational framework is guided by clear and measurable objectives, including efficient, transparent, and timely disbursement of resources to high-impact, strategic investments.
“The partnership objectives include efficient, transparent and timely disbursement of the IDF to the impactful identified strategic investments, effective monitoring and evaluation of the investee companies and proper administration and management of the IDF to achieve its set [goals],” he said.
Mr Kambasha further emphasised that the Fund is fully aligned with the country’s broader economic blueprint, particularly the National Development Strategy 1 (NDS1) and National Development Strategy 2 (NDS2), which aim to create a robust, self-sustaining industrial base.
The launch of the IDF marks a significant milestone in Zimbabwe’s push to reindustrialise, reduce import dependency, and expand export-oriented manufacturing all within the context of an inclusive and sustainable economic growth model.
