Chronicle Editor
Natasha Chamba, Business Reporter
THE Empower Bank has disbursed loans worth $1 million out of the $4,1 million that has been set aside for financing young businesses across the country.
The bank, which was launched by Government last year to support various youth initiatives said to date it has reached out to more than 6 000 youths with potential to set up viable businesses.
Head of marketing and communication, Mrs Christina Muchekeza, said demand for agribusiness loans has compelled the bank to make syndication arrangements with other financial institutions.
“To date the bank has approved loans of about $1 million dollars with some awaiting disbursement. Since inception we have reached out to more than 6 000 youths through our various marketing and outreach programmes across the country,” she said.
“Loans that have been approved for the agricultural sector and its value chain are the significant part of our loan book with more than, $4.1 million under consideration for various individual clients, groups, and associations with most of them under contract farming for both crop and animal husbandry.”
Mrs Muchekeza said some of the loans were targeting value chain financing. She said the agribusiness sector was consuming the bulk of the loans, which is why the bank was looking into syndication arrangements with other financial institutions.
“We also have arrangements with outgrower schemes and associations have loans approved and draw down on their loans is done in stages according to the different requirements at each stage of the farming cycle,” she said.
Mrs Muchekeza said the bank was working in conjunction with the youth desk under the Ministry of Lands, Agriculture and Rural Settlement in identifying opportunities for youth empowerment. She said the collaboration was meant to maximise opportunities for the youth interested in agriculture as the ministry has more insight on what was on the ground.
The bank said it was looking forward to significant agricultural contribution towards employment. A report on Harnessing Demographic Dividend in Zimbabwe, supported by the United Nations Population Fund (UNPFA), indicates that a majority of the Zimbabwean labour force is engaged in the agricultural sector and emphasises the need to enhance its capacity to create attractive livelihood opportunities for the youth across the value chain.
Empower Bank offers personal loans for day-to-day needs as well as asset loans whose interest rates range between four and five percent. The bank has 70 percent of the fund for youths while 30 percent was set aside for any other business people. — @queentauruszw
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