admin
A representative of the bank Mr Tapiwa Majaka told a business conference in Bulawayo recently that the facility was meant to ensure sustainable development and employment creation.
“The facility is meant to enable sustainable development of income and employment generating enterprises initiated by Zimbabwean youth from 25 years to 35 who run or intend to start their businesses full time.
“The fund is meant to support working capital and expenditure requirements for small and medium enterprises (SMEs).
“The focus is on primary production, value addition, and export oriented projects and with a quick cash turnaround,” he said.
Mr Majaka said the objectives of the fund included improved access to finance by SMEs, hence empowerment of Zimbabweans in line with the Government’s policy on indigenisation and economic empowerment.
“The fund should help with employment creation through increased support and development of entrepreneurial capabilities.
“Other intention of the fund is income generation resulting in improved standards of living and poverty reduction.
“The overriding goal is wealth creation among youths as well as promoting utilisation of skills and aid social development in communities.”
He said the fund targeted growth of sectors of the economy. Persons who can access the fund include individuals, sole traders, partnerships or those formally registered under the Companies Act or Private Business Corporation Act.
“The fund will be availed to an employer of more than 50 permanent employees and directors and shareholders should be Zimbabwean youths aged between 21 to 35 years.
“Also business owners must be involved in the business operations and management of the company full time,” Mr Majaka said.
The bank will give minimum loans of $5 000 while the maximum will be $20 000 at an interest rate of 14 percent per annum.
“The maximum loan tenure will be up to 18 months for working capital and 36 months for capital expenditure,” Mr Majaka said.
Online Reporter