The Sunday News
Mesabe Ncube
YOUTHS in Bulawayo have complained over the stringent requirements needed to access funds under a Government initiated fund — Kurera/Ukondla — adding this was derailing efforts to promote empowerment.
The $20 million fund was introduced by the Ministry of Youth, Indigenisation and Economic Empowerment and is administered through CABS, CBZ, Stanbic and Infrastructure and Development Bank of Zimbabwe (IDBZ).
To access the money applicants are supposed to produce a Curriculum Vitae (CV), a viable project with a projected cash-flow, possess relevant skills for the project and be of reliable character.
Additionally they are also supposed to state how many people are likely to be employed through the project and how it will contribute to the economy.
In some cases some banks demand collateral amounting to $20 000.
The Kurera/Ukondla youth fund is a Government initiative to empower Zimbabwean Youths aged between 18 and 25 with the intention of improving levels of employment and contributing to the country’s economic growth.
Speaking at a dialogue session organised by National Youth Development Trust (NYDT) and Intsha.com Women’s Institute for Leadership and Development Christian Legal Society, Zimbabwe Youth Council representative Mr Francis Hungwe said the conditions that make the youths eligible beneficiaries of the fund were too rigid.
“Such collateral means the bank is demanding houses,” said Mr Hungwe, “and with these loans targeting youths between 18 and 35, how many in that bracket own houses?”
He added that youths, especially in rural areas, were also facing challenges in accessing the banks and since approval was centralised, the youths were also disadvantaged since it was taking long to get feedback on applications.
National Assembly representative for Nketa Mr Phelela Masuku, who also attended the meeting, said it was imperative for Government to decentralise the approval of the loan applications.
A civil society representative, Mr Nkosi Dibiti, said Government must make an effort to impart knowledge that would enable youths to come up with “bankable” projects before shutting them out of the whole exercise.
This was said after the youths lamented that their project proposals were being rejected and labelled “unbankable” because the decision-making bodies were failing to distinguish between different business dynamics that apply to their part of the region.
In some extreme cases, youths have had their projects revoked or loans tremendously reduced without explanation.
“That is limiting the display of the business acumen and ability in young people, causing them not to be able to repay because their projects haven’t been fully supported,” said Mr Hungwe.
Some youths, however, testified that they had managed to grow their businesses using the money.
The youths were mainly in fish farming in Binga and cattle fattening in Tsholotsho.
The Tsholotsho project was done in partnership with Cold Storage Company and other abattoirs.
