BY NTOKOZO MAGONGO
MBABANE – The Youth Enterprise Revolving Fund (YERF) continues to support young entrepreneurs in developing their businesses.
In collaboration with the Royal Science and Technology Park, YERF invited Tafara Tsoka, the Chief Executive Officer (CEO) of Zion Venture Partners, to inspire approximately 30 young entrepreneurs through a masterclass on Venture Capital (VC)—a form of private funding that supports startups and small businesses with high growth potential.
Tsoka, an experienced global executive with expertise in financial services, fintech, and over-the-counter derivatives, led an engaging three-hour session, sharing valuable insights with both aspiring and established business owners.
Unlocking Venture Capital for African Startups
During his presentation, Tsoka focused on how African startups can secure venture capital, highlighting three key areas:
- Choosing Between Debt and Equity – He explained that equity funding involves exchanging partial ownership for capital, aligning investors with a business’s success. In contrast, debt funding requires borrowing money that must be repaid over time with interest, without sacrificing ownership.
- Building a VC-Ready Startup – He outlined essential steps, including creating a clear business plan, defining market fit, understanding financials and scalability, and ensuring legal and financial transparency to attract investors.
- Crafting a Strong Pitch – Tsoka emphasized the importance of storytelling in a pitch. He advised entrepreneurs to clearly define their problem and solution, present growth potential, and make a specific funding request supported by data.
Eswatini’s start-up ecosystem and the role of VC
Tsoka highlighted the growing importance of venture capital in Eswatini’s economy. He noted that in 2024, Africa raised $2.2 billion (about E40.7 billion) in VC funding, while Eswatini’s economy expanded by 4.9%, with technology expected to drive future growth. He pointed out that digital transformation is accelerating, with 40% of Africa’s population now having internet access.
Creating a supportive VC environment
To encourage more venture capital investments in Eswatini, Tsoka recommended:
- Strengthening innovation hubs like the Royal Science and Technology Park.
- Enhancing cross-border collaboration within the Southern African Development Community (SADC) to expand market access.
- Simplifying regulations and providing tax incentives to attract investors.
The VC masterclass was a crucial step toward building a thriving startup ecosystem in Eswatini. By equipping young entrepreneurs with essential knowledge, YERF and its partners are fostering a new generation of innovative business leaders, poised to drive economic transformation in the country.
