Last week’s Parliamentary Portfolio Committee of Youth, Sports and Recreation culminated in some updates regarding government’s National Venture Fund.
The NVF was supposed to start funding businesses back in February but the platform to do is being developed by FINSEC and is yet to go live. It was also revealed that the government isn’t in a rush to disperse the funds because of inflation;
We are taking our time to make sure that all the required procedures needed in acessing the funds are put in place and we cannot rush to give out the funds to applicants due to inflation as we intended to ensure that the funds are issued out in a more transparent manner.
As treasury our responsibility is to ensure that public resources are put to good use. The NVF is meant to support people with business ideas but without shareholders to qualify for bank loans. This will be an ongoing exercise and when the $500 million is exhausted, Government will avail more funding.Clive Mphambela – Ministry of Finance & Economic Development Chief Director of Communication
The fact that national treasury is suggesting they are not in a rush to disperse the funds because of inflation is hard to understand. The 500m fund is losing value on a daily basis and one would assume that’s reason for them to disburse the money but maybe because it’s a rolling fund the government feels they will be able to capture that value in other ways once the fund becomes operational.
Mr Mphambela also confirmed that applicants will apply for the funding via an online platform after the government engaged the FINSEC to develop the platform which we reported on a few weeks ago.
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