News / National
Zimbabwe unveils fund to support value chains
24 Apr 2025 at 07:20hrs | Views
The Government of Zimbabwe has launched the Industrial Development Fund (IDF) to support the strengthening of domestic value chains, promote industrial growth, and increase the export of value-added goods. The IDF is designed to anchor import substitution measures and enhance the competitiveness of key sectors such as pharmaceuticals, agro-processing, cotton, and leather.
The launch of the IDF was announced during a virtual presentation at the Zimbabwe International Trade Fair (ZITF) International Business Conference, held as part of the ongoing 65th edition of ZITF in Bulawayo. Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, revealed that resources had been allocated to capitalise the new fund.
"In the 2025 Budget Fiscal, the Government set aside ZWG100 million to capitalise the new Industrial Development Fund (IDF). This fund will support value chains in critical sectors such as pharmaceuticals, agro-processing, cotton, and leather, among others," Minister Ncube said.
He also highlighted that the Government is taking additional steps to support start-ups and micro, small, and medium enterprises (MSMEs) through the recapitalisation of the National Venture Capital Company of Zimbabwe (NVCCZ). The NVCCZ was established to provide equity finance and tailored financing solutions to growing businesses.
"ZWG108 million has been allocated through the 2025 National Budget to support MSMEs and start-ups. The Government's policy focus remains on sustaining industrialisation and broad-based transformation, as outlined in the National Development Strategy (NDS1), with a specific focus on supporting productive value chains," Minister Ncube added.
He emphasized that the key interventions in the 2025 Budget aim to consolidate gains made in sectors such as manufacturing, agro-processing, and mining. The overall goal, he explained, is to enhance domestic value addition and beneficiation, which are central to Zimbabwe's economic transformation.
"Industrialisation and value chains are crucial to national economic development. They drive industrial growth, increase export earnings, reduce the import bill, encourage innovation, and foster skills development. Additionally, they play a key role in improving regional and global competitiveness," said Minister Ncube.
The manufacturing sector is also set to benefit from international support, with the African Development Bank (AfDB) backing several targeted projects in 2025. Minister Ncube stressed the importance of international partnerships in unlocking Zimbabwe's industrial potential and attracting foreign investment.
"Government's re-engagement efforts are focused on fostering relationships, attracting foreign investment, and facilitating technology transfer to build a modern, competitive industrialised economy," he said.
Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu, also welcomed the new IDF, acknowledging that affordable financing is critical for the productive sector.
"We acknowledge that the current lending rates in our financial systems are too high to support industry. I am grateful to President Mnangagwa and the Ministry of Finance for launching the new IDF today. This is a step in the right direction, and through the NVCCZ, details will be made available on how to access the funding," Minister Ndlovu said.
He further expressed optimism that the IDF will attract private sector funding, particularly as the fund's success grows. The Minister also noted that the fund would be replenished annually, ensuring that it continues to grow and support industrialisation efforts.
The ZITF International Business Conference, organised by the ZITF Company in conjunction with the National Economic Consultative Forum (NECF) and the Confederation of Zimbabwe Industries (CZI), was officially opened by Vice President Constantino Chiwenga. The event serves as a key platform for fostering dialogue between policymakers, business leaders, and international stakeholders to drive Zimbabwe's economic transformation.
The launch of the IDF represents a significant step towards achieving Zimbabwe's vision of sustainable industrialisation and economic diversification, with a focus on enhancing value chains, boosting exports, and promoting long-term economic growth.
The launch of the IDF was announced during a virtual presentation at the Zimbabwe International Trade Fair (ZITF) International Business Conference, held as part of the ongoing 65th edition of ZITF in Bulawayo. Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, revealed that resources had been allocated to capitalise the new fund.
"In the 2025 Budget Fiscal, the Government set aside ZWG100 million to capitalise the new Industrial Development Fund (IDF). This fund will support value chains in critical sectors such as pharmaceuticals, agro-processing, cotton, and leather, among others," Minister Ncube said.
He also highlighted that the Government is taking additional steps to support start-ups and micro, small, and medium enterprises (MSMEs) through the recapitalisation of the National Venture Capital Company of Zimbabwe (NVCCZ). The NVCCZ was established to provide equity finance and tailored financing solutions to growing businesses.
"ZWG108 million has been allocated through the 2025 National Budget to support MSMEs and start-ups. The Government's policy focus remains on sustaining industrialisation and broad-based transformation, as outlined in the National Development Strategy (NDS1), with a specific focus on supporting productive value chains," Minister Ncube added.
He emphasized that the key interventions in the 2025 Budget aim to consolidate gains made in sectors such as manufacturing, agro-processing, and mining. The overall goal, he explained, is to enhance domestic value addition and beneficiation, which are central to Zimbabwe's economic transformation.
"Industrialisation and value chains are crucial to national economic development. They drive industrial growth, increase export earnings, reduce the import bill, encourage innovation, and foster skills development. Additionally, they play a key role in improving regional and global competitiveness," said Minister Ncube.
The manufacturing sector is also set to benefit from international support, with the African Development Bank (AfDB) backing several targeted projects in 2025. Minister Ncube stressed the importance of international partnerships in unlocking Zimbabwe's industrial potential and attracting foreign investment.
"Government's re-engagement efforts are focused on fostering relationships, attracting foreign investment, and facilitating technology transfer to build a modern, competitive industrialised economy," he said.
Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu, also welcomed the new IDF, acknowledging that affordable financing is critical for the productive sector.
"We acknowledge that the current lending rates in our financial systems are too high to support industry. I am grateful to President Mnangagwa and the Ministry of Finance for launching the new IDF today. This is a step in the right direction, and through the NVCCZ, details will be made available on how to access the funding," Minister Ndlovu said.
He further expressed optimism that the IDF will attract private sector funding, particularly as the fund's success grows. The Minister also noted that the fund would be replenished annually, ensuring that it continues to grow and support industrialisation efforts.
The ZITF International Business Conference, organised by the ZITF Company in conjunction with the National Economic Consultative Forum (NECF) and the Confederation of Zimbabwe Industries (CZI), was officially opened by Vice President Constantino Chiwenga. The event serves as a key platform for fostering dialogue between policymakers, business leaders, and international stakeholders to drive Zimbabwe's economic transformation.
The launch of the IDF represents a significant step towards achieving Zimbabwe's vision of sustainable industrialisation and economic diversification, with a focus on enhancing value chains, boosting exports, and promoting long-term economic growth.
Source - the herald
