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The New Age Voices Issue 27
Youth Agenda Trust
December 05, 2011

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US$11M Youth fund, a pie in the sky?

Following years of quandary over their inability to access loans for income generating projects, youths in the country thought that they had finally managed to bust the unemployment scourge after Old Mutual unveiled a US$11Million loan last week but alas it seems it is just but a pie in the sky.

The youth fund which was launched by Vice President Joyce Mujuru last week on the occasion of the celebration of the Africa Youth Day, has been seen as a huge step towards eradicating unemployment, but however, The New Age Voices has learnt that there still a lot of teething problems regarding the roll out of the loan facility.

According to Old Mutual Chief Executive Officer Mr Luke Ngwerume, the loans are "flexible and youth friendly" in that there is no collateral required for one to access the loan but the viability and bankability of the proposed project becomes the collateral.

Youths who spoke to The New Age Voices after approaching CABS which is the bank entrusted with disbursing the funds said that the loans were not yet being disbursed and the bank has since been referring youths to the ministry of youth for audience and vice versa.

Evernice Tembo of Highfields said she was not able to get the loan application process going because of reasons better known to the ministry of youth and CABS.

"I have tried to hand in my application but I have been told that the bank is yet to get formal communication to start disbursing the funds, Evernice said.

Tendai Charakupa also confirmed to this paper that he was not lucky at the bank and like Evernice had been referred back to the Ministry of youth.

A visit by The New Age Voices to CABS Fourth Street also confirmed the development with the lady who attended to us signalling to some bottle necks but expressed confidence that the bandwagon will be up and running soon once the few "bottlenecks" are sorted out.

During the launch last week, the Minister of Youth Saviour Kasukuwere told multitudes of young people who had thronged the Harare International Conference Centre for the launch that "you can go to the bank tomorrow and start accessing the loans"

Meanwhile, The US11Million facility was launched by Old Mutual in compliance with the Indigenisation law and Ngwerume said that each of the country's provinces would receive US$1 million with the Ministry of Youth also getting US$1 Million to administer the funds.

"The funds will be given to all youths regardless of political affiliation and no form of collateral other than the viability of your business proposal will be required, the fund will help contribute to reconstruction and development of the country as youth are enterprising, innovative and dynamic and should be able to make the most of it," Ngwerume said.

Vice President Mujuru re-emphasised the need for the youth fund to be disbursed transparently and implored youths to be responsible and use the funds productively so that they will be able to pay back to allow others to benefit as well. This day is usually celebrated across the continent on November 1, and this year's commemorations marked the fifth Africa Youth Day.

Chairperson of the National Youth Development Agency in South Africa, Andile Lungisa said, "young people must be able to pay back the money to keep the fund alive for years to come - to keep young people alive."

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