Youth Fund favours agric sector

took 31 percent, manufacturing 23 percent, service 11 percent and mining 1 percent.
The YDF partners said to date 866 individuals had benefited from the fund.
CABS and the Ministry of Youth Development, Indigenisation and Empowerment had so far approved loans amounting US$1,7 million.
“As at 28 September 2012 we have approved a combined total of US$1 709 620,” reads part of the statement.
According to the ministry, the funds are distributed in tranches of a minimum of US$500 up to a maximum of US$5 000, depending on the size and type of project.
The youth empowerment facility provides funds for capital expenditure loans and 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 annual interest rate of 10 percent and are repaid as per loan disbursement agreement.
With the formal employment rate standing at lower than 20 percent of the total population, the funds are critical in creating opportunities and reducing poverty among the youths.
The Ministry of Youth Development, Indigenisation and Economic Empowerment has been distributing the funds to youth since 2009 as part of the Government’s empowerment programme with each beneficiary getting a minimum of US$1 000 up to a maximum of US$5 000 depending on the size and type of their project.
Recently 45 youths from Mbire District, Mashonaland Central Province — representing 45 different youth-led projects — recently received funding from the CABS Kurera/Ukondla Youth Fund.
The youths who are largely into agriculture and the distribution sectors recently signed their loan offer letters to the tune of over US$40 000.
Other youths that have also benefited from the fund are in Nyanga District, Mutare, Macheke, Bulawayo Masvingo, Hwange and Gweru.