THE National Venture Capital Company of Zimbabwe (NVCCZ) has flagged weak investor readiness among local startups as a major barrier to funding, even as it intensifies due diligence on capital applications .
Set up in 2021 to fund small and medium enterprises (SMEs), NVCCZ operates in an economy where informality dominates. According to the Zimbabwe National Statistics Agency (Zimstat), 76,1% of the country’s 204 798 operational establishments are informal.
Since inception, more than 70% of applications to the fund have come from youth-led startups across sectors including technology, agriculture, manufacturing, energy and healthcare — underscoring both the scale of entrepreneurial activity and the pressure on limited capital.
Government allocated ZiG165,3 million (US$6,54 million) to NVCCZ for 2026, positioning the fund as a key lever in efforts to formalise and scale emerging businesses.
NVCCZ chief executive officer Tinoenda Kambasha said access to funding remains constrained by the poor preparedness of applicants, forcing the agency to adopt a stringent approach.
“We invest with the expectation of a return, even in equity deals. This is not free money. A fund must generate returns and ensure capital revolves so that it can benefit more businesses over time,” he told businessdigest.
“We are therefore very strict. We carry out thorough background checks and vetting processes because this is taxpayer money, and it must be treated with respect. So far, we have seen encouraging growth. On average, the companies we have invested in have doubled their workforce since our involvement.”
While the fund is scaling up support for startups and SMEs, Kambasha said a fundamental gap persists in how local enterprises prepare themselves for investment.
- Thousands flee economic mess
- Zim food inflation tops world: WB
- ‘1 500 women die giving birth’
- Half of Zim youths loafing: ZimStat
Keep Reading
“The challenges that we have seen are that a lot of companies are not investor ready. They are not documenting what they are doing. They are not doing the research. Some stuff does not need money,” he said.
“Some of it is just research. Getting numbers from Zimstat, understanding where the markets are, understanding where people live, what they demand, what they want if you are selling a product, and understanding who your target market is. So, that is what I see as the biggest challenge.”
In response, NVCCZ is rolling out nationwide capacity-building initiatives in partnership with ZimTrade, aimed at equipping entrepreneurs with the skills required to attract capital.
The fund is also deepening ties with universities, which it regards as critical innovation hubs capable of generating commercially viable ventures.
“We intend to deepen our collaboration with them to drive investment returns and national development," he said.
Beyond capital injection, NVCCZ is positioning itself as a facilitator of market access, working with trade bodies, embassies and government ministries to connect start-ups to both local and international opportunities.
