Minister Zhuwawo on youth anchor companies

Munyaradzi Musiiwa, Midlands Correspondent
THE Ministry of Youth, Indigenisation and Economic Empowerment is in the process of setting up a micro-finance institution as part of efforts to support youth empowerment initiatives as well as curbing abuse of funds by youths running unsustainable projects and those defaulting.

Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwawo said the development comes when the ministry through the Zimbabwe Youth Council, has set up anchor companies which provide support services to young entrepreneurs.

Minister Zhuwawo said the African Development Bank has funded a research which was carried out by Zimbabwe Economic Policy Analysis and Research Unit (Zeparu) which will assist in the management and monitoring of youth projects.

He said the ministry with the help of AfDB has developed a youth empowerment model which will see the setting up of a power bank which will see the establishment of a youth focused microfinance institution.

“I think what we have done is based on a number of diagnostic studies that we have conducted including one which was funded by the African Development Bank conducted by Zeparu. We developed a youth empowerment model that has three components. The first component looks at nurturing of youth entrepreneurs which involves identifying and up-scaling them.

The second component is the development of business ecosystems which then facilitate actual viability and sustainability of business that the young people are involved in. The last component is the financial inclusion which involves the establishment of a power bank which will be a youth focused microfinance institution.

This might not necessarily be a money lending institution but a company which provides an array of financial services and support,” he said.

Minister Zhuwawo said anchor companies are providing aggregated services geared towards the development of micro enterprises.

“The ministry through the Zimbabwe Youth Council has established anchor companies that provide aggregated services geared towards the development of micro enterprises. The companies include Youth Shape Zimbabwe, Youth Make Zimbabwe, Youth Employ and ZIMCHEER. To date through ZIMCHEER we have identified over 39 358 micro-level enterprises employing about 93 000 young people,” he said.