ACCORDING to a report presented to the portfolio committee on youth, sports, arts and recreation on the progress in implementation of the national venture fund-Perm Sec in the Ministry of Finance, Mr George Guvamatanga said they are now setting a National Venture Capital Company-NVCC.
Since the approval of the National Budget-Guvamatanga said-the Ministry of Finance has been working on establishing the NVCC. “A Steering Committee has been set following an internal approval process within the Ministry of Finance and Economic Development.”
Guvamatanga said-the steering committee which comprise of members from government ministries, “is now working on identifying the private sector representatives. The names of possible candidates have been submitted and work is currently underway to collect CVs from the proposed candidates, before shortlisting and interviews.”
In the 2020 National Budget Statement, the Government of Zimbabwe announced the establishment of a National Venture Capital Fund with its main objective being to encourage good entrepreneurship and innovation by SMEs, especially those owned by the Youth and Women.
ZWL$500 million has been set aside for this cause.
Under the National Venture Fund, Government will prioritise projects that have capacity to meet the following criteria:
- Technological Innovation and impact;
- Sustainable Job creation;
- Import Substitution;
- Forex generation and Export Growth;
- Promoting Women & Youth Entrepreneurship;
- Projects outside the big cities (Economic Growth Nodes); and
- IRR greater than 15% – However, investments with a high developmental impact will also be given great preference.
“The NVCC will appoint independent fund managers that will be responsible for appraising business opportunities to invest, together with an investment committee that will be drawn from the board and management structures of the NVCC in line with the rules laid out in both the Public Entities Corporate Governance Act as well as the Public Finance Management Act” Guvamatanga said.