adminDevelopment Fund.
The fund, which was set up by the Government through the Ministry of Youth Development, Indigenisation and Economic Empowerment, is administered through Youth Empowerment Facilities managed by CBZ Bank and the Infrastructure Development Bank of Zimbabwe.
At least 517 youths and youth organisations/companies benefited from the CBZ Bank facility, while 145 have benefited from the Infrastructure Development Bank of Zimbabwe facility.
Youth Development, Indigenisation and Economic Empowerment acting permanent secretary Mr George Magosvongwe urged more financial institutions to come on board and boost the pool’s resources.
“The fund has had a total capital injection of US$2,1 million to date from the fiscus. This figure is inadequate when measured against the current demand for project financing applied for by the youth.
“The Ministry is therefore inviting other financial institutions to come on board so that the Youth Empowerment Agenda is escalated in order to strengthen
existing projects and to expand the empowerment base in order to create jobs for young people and reduce poverty in local areas,” he said.
According to the Ministry, the funds
are distributed in batches of a minimum of
US$1 000 up to a maximum of
US$5 000 depending on the size and type of project.
The Youth Empowerment Facility provides funds in the form of capital expenditure loans, project finance, and working capital finance including short-term loans, debt factoring, order finance, invoice discounting and guarantees.
The funds are essentially bank loans at an interest rate of 10 percent per annum and are repaid as per loan disbursement agreement.
The Ministry said although projects from any sector can benefit from the fund, priority will focus on projects that focus on value-addition.
With the country’s formal employment rate standing at under 20 percent of the total population, the funds are critical in creating opportunities and reducing poverty among the youths.
Online Reporter