adminNqobile Tshili, Business Correspondent
THE Ministry of Youth, Indigenisation and Empowerment is struggling to recover $250 000 in loan repayments from youths in Bulawayo.
The youths accessed the loans a few years ago through CABS after the Government mobilised the resources under the empowerment fund.
The development has reportedly stalled the advancement of the revolving loan fund to support more entrepreneurs under the programme.
This emerged during a youth empowerment stakeholders meeting in Bulawayo’s Pelandaba suburb last week. A development officer in the ministry, Ms Siphiwe Moyo, told participants that 95 percent of youths were defaulting. She said the high default rate was affecting the continuation of the programme.
“As a province we distributed $352 000 through CABS and to date about $100 000 has been paid back. That puts our balance at $252 000 as we speak today. The non-performing loans are the ones leading the bank not to release more money,” said Ms Moyo.
“So they are now trying to come up with a new framework that will ensure that beneficiaries receive the funds and that the bank is going to be paid back.”
The development officer said due to the high default rate the bank has already engaged the Government on how it can recoup its investment. She could not be drawn into commenting how much the ministry had lost at national level.
— @nqotshili
Online Reporter