Empowerment funds exhausted

POSSIBILITY of other youths accessing the youth empowerment loans hangs in the balance as banks have exhausted their allocated funds while some beneficiaries are said to be failing to repay their loans.

Funds under this facility are being handled by CABS, The Commercial Bank of Zimbabwe (CBZ) and The Infrastructure Development Bank of Zimbabwe (IDBZ).

However CBZ (US$1.7milion) and the IDBZ (US$250 000) have indicated that they have utilised all the money allocated to them under the facility.

The soft loan revolving fund set up in 2009 was put in place to build capacity to youths who are not involved in any mainstream economic activity, through income generating projects.

Addressing delegates at a youth fund dialogue meeting organised by the Zimbabwe Youth Council, CBZ Head-Microfinance and Consumer loans Handson Maeresera said although they have exhausted their share of the fund, they are worried by the level of non-repayment.

“The available funds allocated to CBZ were exhausted, but this is a revolving fund which must be repaid but youths think this is money to spend.

“Most of the money is not being spent on projects they were applied for thereby affecting the repayment plans, that’s why most of them have failed to pay back.

“We are let down by the youths,” said Maeresera.

Speaking at the same meeting IDBZ Head-Special Programs Gregory Mupfumira while bemoaning that his organisation had received a small amount he also appealed to the beneficiaries to honour their loans.

“We received US$250 000 in a country that has 10 provinces you can do the sums and you can come to the conclusion that it’s really nothing, though we are not complaining since it is a revolving fund.

“However some people who benefitted from the fund are not being honest with us. If your project was funded do the best to help others being funded by paying your loans.

“We are appealing to those who benefitted that if they are facing challenges they should come and see us so that we can see how best we can help them,” Mupfumira said.

The IDBZ official indicated that while they are aware that due to the prevailing economic situation in the country markets are now depressed and it’s now more difficult to acquire raw materials, beneficiaries are best advised to seek guidance from the banks on the way forward than to hide.-