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Mthuli Ncube unveils industrial development facilities
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Zimbabwe's Finance Minister, Mthuli Ncube, has outlined a comprehensive strategy aimed at supporting the growth of micro, small, and medium-sized enterprises (MSMEs) in the country. The initiative, which seeks to drive these enterprises towards full-scale industrialisation, is central to the government's broader formalisation agenda.
According to recent reports, Zimbabwe currently boasts a robust MSME sector comprising 3.4 million businesses that employ 4.8 million people full-time. The 2022 Finscope Survey highlighted that MSMEs contribute an impressive US$ 8.6 billion to the country's GDP, a clear testament to their importance in Zimbabwe's economic landscape. However, experts have raised concerns over the informal nature of many MSMEs and have called for greater efforts to nurture and support this sector to curb revenue leakages and foster formalisation.
In his address to delegates at the ZITF International Business Conference on Wednesday, Minister Ncube highlighted several key initiatives aimed at bolstering the MSME sector. One of the central components of the government's support is the recapitalisation of the National Venture Capital Company of Zimbabwe (NVCCZ), which is tasked with providing critical financial backing for start-ups and MSMEs. Through this initiative, the NVCCZ offers equity finance (Patient Capital), innovative financing solutions, and tailored support for businesses at various stages of growth, from start-ups to more established enterprises.
The Minister revealed that ZiG108 million has been allocated in the 2025 National Budget to support these ventures, ensuring that MSMEs have access to the capital they need to thrive. He further pointed out that the government's commitment to nurturing MSMEs is also reflected in the New Industrial Development Fund (IDF), which has been capitalised with ZiG100 million in the current fiscal period. The IDF is designed to support key value chains in sectors such as pharmaceuticals, agro-processing, cotton, and leather, which are essential for the country's industrial growth.
In addition to domestic funding, Zimbabwe's manufacturing sector is also benefiting from international support. The African Development Bank (AfDB) has committed to funding several projects in 2025, including the Sustainable Enterprises Development for Women and Youth, which will contribute to both skills development and the employability of youth and women. One of the key projects supported by the AfDB is the Hauna banana processing plant, which is set to provide significant economic benefits to the region.
Minister Ncube also pointed out that the AfDB's support extends to capacity building for youth and women in the fruit and vegetable value chain. Other initiatives include curricula review workshops aimed at enhancing the infrastructure for aquaculture production, with specific focus on projects at the Kukwanisa and Binga Vocational Training Centres, as well as a dedicated Training Centre for Rural Women.
These efforts underscore the government's commitment to driving industrialisation, particularly through the formalisation of MSMEs, which are seen as a critical pillar in the country's economic future. By providing financial resources, technical support, and international partnerships, the government aims to unlock the potential of MSMEs, ensuring that they can contribute meaningfully to Zimbabwe's development while creating jobs and improving economic stability.
According to recent reports, Zimbabwe currently boasts a robust MSME sector comprising 3.4 million businesses that employ 4.8 million people full-time. The 2022 Finscope Survey highlighted that MSMEs contribute an impressive US$ 8.6 billion to the country's GDP, a clear testament to their importance in Zimbabwe's economic landscape. However, experts have raised concerns over the informal nature of many MSMEs and have called for greater efforts to nurture and support this sector to curb revenue leakages and foster formalisation.
In his address to delegates at the ZITF International Business Conference on Wednesday, Minister Ncube highlighted several key initiatives aimed at bolstering the MSME sector. One of the central components of the government's support is the recapitalisation of the National Venture Capital Company of Zimbabwe (NVCCZ), which is tasked with providing critical financial backing for start-ups and MSMEs. Through this initiative, the NVCCZ offers equity finance (Patient Capital), innovative financing solutions, and tailored support for businesses at various stages of growth, from start-ups to more established enterprises.
The Minister revealed that ZiG108 million has been allocated in the 2025 National Budget to support these ventures, ensuring that MSMEs have access to the capital they need to thrive. He further pointed out that the government's commitment to nurturing MSMEs is also reflected in the New Industrial Development Fund (IDF), which has been capitalised with ZiG100 million in the current fiscal period. The IDF is designed to support key value chains in sectors such as pharmaceuticals, agro-processing, cotton, and leather, which are essential for the country's industrial growth.
In addition to domestic funding, Zimbabwe's manufacturing sector is also benefiting from international support. The African Development Bank (AfDB) has committed to funding several projects in 2025, including the Sustainable Enterprises Development for Women and Youth, which will contribute to both skills development and the employability of youth and women. One of the key projects supported by the AfDB is the Hauna banana processing plant, which is set to provide significant economic benefits to the region.
Minister Ncube also pointed out that the AfDB's support extends to capacity building for youth and women in the fruit and vegetable value chain. Other initiatives include curricula review workshops aimed at enhancing the infrastructure for aquaculture production, with specific focus on projects at the Kukwanisa and Binga Vocational Training Centres, as well as a dedicated Training Centre for Rural Women.
These efforts underscore the government's commitment to driving industrialisation, particularly through the formalisation of MSMEs, which are seen as a critical pillar in the country's economic future. By providing financial resources, technical support, and international partnerships, the government aims to unlock the potential of MSMEs, ensuring that they can contribute meaningfully to Zimbabwe's development while creating jobs and improving economic stability.
Source - NewZimbabwe
