Manicaland takes advantage of the $10m youth fund

The government has disbursed about $5.5 million in nearly 4 000 youths projects under its Kurera/Ukondla Youth Fund established after the indigenisation of Old Mutual, one of the country’s largest institutional investors.

The bulk of the projects approved were in Manicaland with 667 while Matebeleland South had the lowest.

Deputy Minister of Youth, Indigenisation and Economic Empowerment, Mathias Tongofa said the fund was established last year with a capital base of $10 million raised after the indigenisation of 25 percent of Old Mutual.

The $10 million was from 2.5 percent of the shares.

“A total of 2 568 male projects were approved, translating to 65% of the approved projects, whilst 1 298 female projects were approved making up 34% of the approved projects with 1% of the projects being run by both males and females,” Tongofa said.

He said the programme was decentralised and some districts like Bindura, Mazowe, Goromonzi, Marondera, Makonde and Zvimba had already exhausted their funding.

The programme is for youths aged between 18 to 35 years.

Full response:

KURERA/UKONDLA YOUTH FUND DISBURSEMENTS

MR. GONESE asked the Minister of Youth, Indigenisation and Economic Empowerment to outline to the House:

• the amount of money disbursed by the Kurera/Ukondla Youth Fund.
• the beneficiaries of the fund.

THE DEPUTY MINISTER OF YOUTH, INDIGENISATION AND ECONOMIC EMPOWERMENT (MR. TONGOFA): Before I go straight to the answer, I need to do justice to this question. My ministry’s vision is to achieve true empowerment of our youths and all indigenous citizens. By so doing, we will be trying to empower all our people and the youths. The ministry, pursuant to its vision has approached one of the oldest foreign companies here in Zimbabwe, Old Mutual and through the indigenisation process, it has indigenised up to 25% levels and out of the 25%, 2.5% of the shares were used to raise US$10m for the empowerment of the youth.

The US$10m was co-administered by three organisations – CABS, Old Mutual and our ministry –

[HON MEMBERS: Inaudible interjections]-.

MR. SPEAKER: Please allow the hon. minister to be heard in silence and if the minister could address the Chair.

MR. TONGOFA: A special youth empowerment window was opened with CABS to the tune of US$10m using the accrued equity as I have explained before. The facility is managed by the Kurera/Ukondla Youth Fund and comprising the Ministry of Youth, Indigenisation and Economic Empowerment, the Zimbabwe Youth Council, CABS and Old Mutual.

The Kurera/Ukondla Youth Fund started disbursing funds from January 2012. As at 27 November 2013, a total of 3 988 youth projects were approved for the funding to the tune of US$5 517 233. A total of 2 568 male projects were approved, translating to 65% of the approved projects, whilst 1 298 female projects were approved making up 34% of the approved projects with 1% of the project being run by both males and females.

Mr. Speaker Sir, the programme was decentralised to the districts in order to achieve equitable distribution of the funds. Manicaland province has 667 approved projects, making it a province with the highest number, with Matabeleland South having the lowest number of approved projects.

Mr. Speaker Sir, for the benefit of the House, it should be noted that some districts have exhausted their funding, these include, Bindura, Mazowe, Goromonzi, Marondera, Makonde and Zvimba.

On the question of the beneficiaries, the scheme benefited young men and women aged between 18 to 35 years.

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