THE National Venture Capital Company of Zimbabwe (NVCCZ) is targeting high-potential enterprises to support at scale this year, in a bold move to drive inclusive growth and formalise the informal sector.
NVCCZ was established in 2021 to offer capital to small and medium enterprises (SMEs) with funding, as out of the 204 798 operational establishments, according to the Zimbabwe National Statistics Agency, 76,1% are informal.
Since its launch, NVCCZ has received over 70% of its applications from youth-led start-ups across different sectors that include technology, agriculture, manufacturing, energy and healthcare.
Chief executive officer Tinotenda Kambasha told NewsDay Business in an interview that by backing high-potential enterprises at scale, NVCCZ will deepen Zimbabwe’s entrepreneurial ecosystem.
“By backing high-potential enterprises at scale, NVCCZ will help deepen Zimbabwe’s entrepreneurial ecosystem, formalise parts of the informal sector, and catalyse inclusive, private‑sector‑led growth,” he said.
“Over time, this should translate into higher productivity, improved competitiveness, and a more diversified economic base less vulnerable to external shocks.”
During 2025, the NVCCZ pursued partnerships with innovation hubs, incubators, and financial and research institutions to strengthen the national innovation and venture environment, according to Treasury.
Consequently, in addition to an allocation for administration of the Industrial Development Fund, the government set aside ZiG165,3 million for the NVCCZ for 2026.
- Venture Capital critical for entrepreneurial ecosystems
- NVCCZ targets high-performing entrepreneurs
Keep Reading
This capital is meant to bridge the capital gap for start-ups and scale-ups to promote venture capital and entrepreneurship, empowering viable businesses with strong potential for job creation, import substitution, and value chain development in 2026.
“In 2025 National Budget, NVCCZ was allocated a total amount of ZiG108 million, and Treasury remains the main source of investment funds for now.
“Going forward, we are very intentional in partnerships and co-investment initiatives for us to grow our investment funding capacity,” Kambasha said.
“NVCCZ is currently deploying capital through the thematic window, such as the ZiG100 million Industrial Development Fund, which targets manufacturers seeking to expand, retool, or innovate along domestic value chains.”
He said the NVCCZ was equity-driven rather than loan-driven, meaning it takes a stake in businesses and grows with them instead of extending traditional debt that can over‑burden young firms.
“Providing patient, risk-tolerant equity capital to start-ups and growth firms that are typically excluded from conventional banking finance.
“Driving innovation, job creation, export growth, import substitution and value addition in line with NDS1/NDS2 and Vision 2030 targets.”
A venture capital fund pools investment that raises money from investors to finance early-stage or high-growth companies in exchange for an ownership stake, aiming to profit when those companies grow, list or are sold.
While venture capital is best known for equity investments, VC funds can also lend through structured instruments such as convertible notes, venture debt, or preferred equity with debt-like features.
Under these structured instruments, money is advanced as a loan but may convert into shares later or carry warrants, allowing the fund to earn returns through interest, fees, and potential equity upside rather than relying solely on traditional loan repayment.
