News / National
Youth demand quota in all tenders
07 Mar 2016 at 06:00hrs | Views
Youths in business have called on the Government to ensure that young entrepreneurs benefit from the youth quota in all tenders for procurement and services in public sector institutions so that they gain professional experience and strengthen their participation in the local economy.
Manica Post reported 5that this came out at the launch of the youth entrepreneurship desk coordinated by the Zimbabwe National Chamber of Commerce and the Ministry of Youth, Indigenisation and Empowerment held in Harare recently.
The youth entrepreneurship desk will be aimed at facilitating easier opening of businesses for enterprising young people across the country and opening new market avenues for youths to grow their businesses.
A broad spectrum of young business people in various trades took turns during question time to lament the arrogance being exhibited towards them by the authorities in charge of contracting service providers when it comes to issuance of tenders, a precedence which was parallel to government policy which entails a 25 percent youth quota in all public sector procurements.
They said despite that they were running formal business ventures and their tax records were clean, they still found the going tough in accessing tenders as the playing field was not equal against well connected and established companies which were in some cases marred in tax evasion scandals.
"We are properly filing our applications when ever tenders arise but we seem to be considered unable to do the jobs and more worryingly we see most local companies instead hiring foreign consultancies whilst we are available to offer the same expertise," said one youth participant who is in the consultancy services sector.
"There should be some sort of policy like the case in other countries such as South Africa, which guide companies to contract local service providers or else give convincing reason why they choose a foreign contractor over locals," she added.
In his response, Minister of Youth, Indigenisation and Empowerment, Patrick Zhuwao admitted ignorance to the sad development with regards to tender applications being overlooked but assured that the Ministry was in the process of taking adequate measures in ensuring the 25 percent youth quota was adhered to.
"We have that provision in our Youth Empowerment Policy Act, we have reserved sectors which those foreigners shouldn't be operating under such as that of consultancy as you have mentioned, we are in line of ensuring that space for youths is created in these reserved sectors and the youth quota in all sectors of the economy will be a major issue for implementation," said the Minister.
The Minister however challenged the youths to up their game and be innovative when it comes to competing with established companies who will also be on the hunt for tenders.
"Youths should also be professional and have innovative strategies which will give them the competitive edge over those established competitors,"
Most youths however bemoaned unavailability of capital to start their business or boost production as the Youth Fund was not yielding to their expectations.
The Minister said youths should create investment grade assets in order to attract capital into their businesses rather than wait for the inadequately resourced youth fund to bail them out.
Whilst most youths have failed to penetrate the business world citing unavailability of capital to transform business ideas into reality, the Minister said youths should thrive to self fund some of their projects by being innovative and engaging in crowd funding activities.
"Do not wait for the youth fund to come and knock at your door to give you capital because when those guys tell you we will give get back to you what it simply means is they do not have money, the fund is dry right now," said the Minister.
"Do not be selfish with your idea when you do not have the money to kick start the business. We must learn to engage others with the little you have, add it together as a group and raise the required amount for your business but then the problem is you all want to own everything when you do not have the means. I don't know who ever told you to make it you have to own 100 percent shares from a business.
"Most stock exchange listed companies across the globe are controlled by people who sit at 5 or 7 percent shares," he added.
The youth entrepreneurship desk is a product of the First National Economic Empowerment Conference held late last year which was a platform to gather ideas through consultative means with various youth organisations in the country for the formulation of a sound empowerment strategy
Manica Post reported 5that this came out at the launch of the youth entrepreneurship desk coordinated by the Zimbabwe National Chamber of Commerce and the Ministry of Youth, Indigenisation and Empowerment held in Harare recently.
The youth entrepreneurship desk will be aimed at facilitating easier opening of businesses for enterprising young people across the country and opening new market avenues for youths to grow their businesses.
A broad spectrum of young business people in various trades took turns during question time to lament the arrogance being exhibited towards them by the authorities in charge of contracting service providers when it comes to issuance of tenders, a precedence which was parallel to government policy which entails a 25 percent youth quota in all public sector procurements.
They said despite that they were running formal business ventures and their tax records were clean, they still found the going tough in accessing tenders as the playing field was not equal against well connected and established companies which were in some cases marred in tax evasion scandals.
"We are properly filing our applications when ever tenders arise but we seem to be considered unable to do the jobs and more worryingly we see most local companies instead hiring foreign consultancies whilst we are available to offer the same expertise," said one youth participant who is in the consultancy services sector.
"There should be some sort of policy like the case in other countries such as South Africa, which guide companies to contract local service providers or else give convincing reason why they choose a foreign contractor over locals," she added.
In his response, Minister of Youth, Indigenisation and Empowerment, Patrick Zhuwao admitted ignorance to the sad development with regards to tender applications being overlooked but assured that the Ministry was in the process of taking adequate measures in ensuring the 25 percent youth quota was adhered to.
"We have that provision in our Youth Empowerment Policy Act, we have reserved sectors which those foreigners shouldn't be operating under such as that of consultancy as you have mentioned, we are in line of ensuring that space for youths is created in these reserved sectors and the youth quota in all sectors of the economy will be a major issue for implementation," said the Minister.
The Minister however challenged the youths to up their game and be innovative when it comes to competing with established companies who will also be on the hunt for tenders.
"Youths should also be professional and have innovative strategies which will give them the competitive edge over those established competitors,"
Most youths however bemoaned unavailability of capital to start their business or boost production as the Youth Fund was not yielding to their expectations.
The Minister said youths should create investment grade assets in order to attract capital into their businesses rather than wait for the inadequately resourced youth fund to bail them out.
Whilst most youths have failed to penetrate the business world citing unavailability of capital to transform business ideas into reality, the Minister said youths should thrive to self fund some of their projects by being innovative and engaging in crowd funding activities.
"Do not wait for the youth fund to come and knock at your door to give you capital because when those guys tell you we will give get back to you what it simply means is they do not have money, the fund is dry right now," said the Minister.
"Do not be selfish with your idea when you do not have the money to kick start the business. We must learn to engage others with the little you have, add it together as a group and raise the required amount for your business but then the problem is you all want to own everything when you do not have the means. I don't know who ever told you to make it you have to own 100 percent shares from a business.
"Most stock exchange listed companies across the globe are controlled by people who sit at 5 or 7 percent shares," he added.
The youth entrepreneurship desk is a product of the First National Economic Empowerment Conference held late last year which was a platform to gather ideas through consultative means with various youth organisations in the country for the formulation of a sound empowerment strategy
Source - Manica Post
