adminLack of requisite skills have been cited as it emerged that out of more than US$4 million worth of projects approved, only US$2,7 million has been disbursed from the fund being administered by CABS owing to some bottlenecks related to its disbursement.
Of the total number of youths that have applied, only 30 percent have had their projects approved.
Head of the Youth Fund at CABS, Mr Brian Mpofu, said this while giving oral evidence before the Parliamentary Portfolio Committee on Indigenisation Economic Empowerment committee chaired by Gokwe North Senator Tariro Mtingwende (Zanu-PF).
“The sectors we have been funding are agriculture, manufacturing and mining,” said Mr Mpofu.
He said disbursement of funds is made to suppliers of goods and services and if an applicant delays in furnishing them with such details, that would lead to a delay in disbursement of money on an approved project.
Mr Mpofu denied allegations that the fund was being distributed along partisan lines. He was responding to allegations made by Chikomo Senator Morgan Femai (MDC-T) who said there had been rumours that people belonging to certain political parties or aligned to certain politicians were benefitting.
Hwata Senator Rorana Muchichwa (MDC-T) also made the allegations.
“We consider the viability and how bankable the project is. We also consider how the loan will be serviced. It is not true that we are partisan,” he said.
He said at least 16 700 people had applied and only 3 000 people had their projects approved.
Mzilikazi Senator Matson Hlalo asked if they were happy about the low uptake of the fund.
Mr Mpofu said the response was normal given the small amount earmarked for the fund.
“I am happy given the size of the cake. If you look at it in the context of meeting the needs of Zimbabweans you might say no it is not impressive but given the size of the cake it is okay,” said Mr Mpofu.
Old Mutual launched the US$10 million revolving fund two years ago aimed at empowering youths.
Online Reporter