adminTHE Kurera/Ukondla Youth Fund has been branded a flop after 84 percent of beneficiaries defaulted on loan repayments since the inception of the facility in 2011. Last year Government conceded that the facility had failed and temporarily suspended it. The bold admission obviously tickled arch and habitual critics of Government policies. While the youth fund may have been regarded a flop in the aspect of repayment of loans, the facility has success stories.
When set up, the fund was targeted at youths between the ages of 18 and 35 who were expected to start business projects and create employment for fellow young people.
The main thrust was to deal with the unemployment scourge. In that regard the fund has not failed entirely. It has cases where it managed to achieve its main objective of creating employment and alleviating poverty among the youth.
Mr Godwin Mugumba of Bulawayo stands out as one of the success stories of the fund since its inception.
The 37-year-old businessman from Magwegwe North high density suburb in Bulawayo owes his present status as a business proprietor to the fund.
Mr Mugumba received a $3 000 loan under the facility in 2012 which he used to start a small timber processing business, which has grown in leaps and bounds over the years.
Trading as G Mugumba Investments, the business found in the youth fund a launchpad for growth and Mr Mugumba is optimistic, much brighter days are beckoning for his enterprise.
“I applied for $5 000 but was given $3 000 and that is all the money that I used to start up my business. I had no knowledge of the timber business but a friend of mine encouraged me to venture into the sector and it’s not a decision that I regret,” he said.
Starting off as a small entity in 2012, G Mugumba Investments has grown, not only to provide a source of livelihood for its proprietor but for 12 other youths whom Mr Mugumba has employed.
The business specialises in saw milling and furniture manufacturing, and brags as one of the best in producing Teak products in the city.
“We have two units. One specialises in saw milling. We buy our timber from Tsholotsho, process it and then sell it to other furniture manufacturing companies. Our furniture manufacturing unit does products such as chest of drawers, doors, fitted kitchen units, and any other hardwood product that you may think of,” said Mr Mugumba.
At present the company is processing about 22 cubic metres of timber a month and with more capital injection Mr Mugumba aspires to increase his capacity to 100 cubic metres a month.
With more capital injection, Mr Mugumba hopes to buy more machinery for his furniture manufacturing section and be able to compete at the highest level with some of the big furniture manufacturing companies in the country.
Mr Mugumba also appealed to Government to increase financing to youth projects to about $20 000 per project to allow youths to venture into bigger and more profitable business ventures.
“My hope is to secure another loan so that I can buy more machinery for the carpentry section. We also want to buy more sawmills and that can only happen if we can get more funds.
“I strongly feel that the loans under the youth fund should be increased to about $20 000 so that youths can start bigger projects. That money should however, be strictly monitored to guarantee that it is put to the intended use,” he said.
Mr Mugumba testifies of how the Government youth fund has transformed his life and urges other youths to take advantage of Government empowerment programmes.
“This is the only way that youths can escape unemployment. Government has been on record saying youths should be employers not employees. Empowerment projects are a chance that youths have to create employment and earn decent livelihoods. I urge youths to take advantage of such projects,” he said.
Last week, Zanu-PF secretary for youth affairs Cde Pupurayi Togarepi, toured G Mugumba Investments in Thorngrove and commended the project.
He urged other youths to emulate Mr Mugumba and take full advantage of Government empowerment projects to better their lives.
Cde Togarepi said there were a number of programmes aimed at empowering the youths and what was needed was for the youths to organise themselves into consortiums to benefit from the programmes.
“Right now as we speak Government has reached an agreement with Zimasco. There are chrome mining claims in Shurugwi, there are some in Mutorashanga which are waiting for youths to organise themselves into groups and be given licences to mine.
“You know that the ban on chrome exports has been lifted and there are over 30 million tonnes of chrome that need to be exported. The market is there, the claims are there, what is left is for you to get organised and start reaping the benefits,” he said.
Cde Togarepi said Government was always ready to assist youths with loans, saying what was only needed was for the youths to organise themselves into groups and submit bankable project proposals.
He encouraged Mr Mugumba to rope in other youths as partners for his company to receive more financial support from Government.
“If you are organised say in groups of 10 and you apply for a loan having submitted a bankable project proposal, Government is more than ready to support you. We don’t want youths who apply for financing to do small projects. You should aim high.
“There are a lot of companies that are struggling for financing. Approach them and discuss how much they want to increase their production capacity.
“You can apply for the amount from Government as a group, talk to that company, inject funds and become shareholders.
“Cde Mugumba, you say you need more capital for your business. Rope in other youths and Government will assist you. You are doing a very good job here but we want to see you much bigger than this,” he said.
Responding to Cde Togarepi’s advice on roping in other partners, Mr Mugumba said he was willing to work with other youths who share the same vision as his.
The Kurera/Ukondla Youth Fund was set up as a way of easing the problem of unemployment and to also act as a stimulus to economic growth in the country.
While the facility has been a flop in so far as repayment of loans is concerned, it has not totally failed at its main objective of creating sources of livelihoods for Zimbabwean youths.
Online Reporter