Government amends youth fund requirements after major defaults

Government has amended requirements for recipients of business loans under the Youth Development Fund (YDF), to make it mandatory for applicants to have business training, after experiencing a high default rate, youth minister Francis Nhema has said.

He said yesterday that the $5 million disbursed earlier under the fund had registered a non-performance or default rate of 92 percent, prompting the review.

The YDF is a revolving fund of $10 million set up in 2012 to provide financial assistance for income generating projects for youths below the age of 35 as part of the government’s indigenisation and economic empowerment programme.

“We still have $5 million (in the fund) and it is still possible for youths to apply for it,” said Nhema.

“In the past some had no expertise in the projects they wanted the funds for and now for us to guarantee repayment, we are now insisting that one should have some skill and training. Expertise was being given by banks and we have realized our mistake in that many youths need assistance in writing proposals.”

Government had also decentralised the handling of the fund to provinces.

The funds are administered by CBZ, Stanbic and the Central African Building Society (Cabs).- The Source

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