Youths blast banks

Albert Chavhunduka
Zanu-PF’s Department of Indigenisation and Economic Empowerment has castigated local banks for failing to disburse funds for youth programmes.
At a media conference in Harare last week, Zanu-PF director of indigenisation and economic empowerment Cde Prosper Masenyama said the failure by banks to disburse loans on time made it difficult for youths to start their businesses and contribute to the national economy.

“There are a number of factors occasioned by the disbursing institutions like the time-lag between application and receipt of funds, cumbersome application and vetting process and token loan approvals in some cases that have also impacted on the repayment rates,” said Cde Masenyama.

“We thus call on the banks and responsible authorities to interrogate holistically the issue of non-performing youth loans and take appropriate remedial action.”

Cde Masenyama noted that some youths were failing to pay back their loans due to challenges in the economy.
“While we acknowledge that some youths are failing to repay the loans, we believe it is unfair to squarely blame the young people for the non-performance of the loans,” he said.

“We have an economy heavily affected by sanctions making it difficult for youth-driven businesses and start-ups to operate and compete meaningfully with established enterprises.”

Cde Masenyama urged beneficiaries to repay the loans.
“We advise those youths with operational challenges to approach the relevant banks and agree to practical repayment plans,” he said.

The Youth Development, Indigenisation and Empowerment Ministry set up a revolving fund through various financial institutions, with Old Mutual administering the bulk of it to the tune of US$10 million through CABS.