News / Local
Matabeleland region youths shortchanged
22 Nov 2013 at 02:52hrs | Views
MATABELELAND North and South Provinces do not have sustainable industrial opportunities, a development that has seen youths in the provinces failing to benefit from the Governmment's Youth Fund, an official has said.
Addressing journalists at a media workshop organised by the Zimbabwe Youth Council (ZYC) at Mazvikadei Leisure Resort in Banket on Wednesday, the CBZ portfolio manager for micro-finance and consumer loans Mr Wellington Benyera said out of the $2 682 777 that was disbursed by the bank since 2009, youths from Matabeleland South and North benefited only two and one percent of the money.
"The bank, through the Ministry of Youth Development, Indigenisation and Empowerment started disbursing loans in 2009 at an interest rate of 10 percent. A total of 2 102 loans valued at $2 682 777 were given to youths countrywide," said Mr Benyera.
"Out of the money, youths in Matabeleland South received only two percent while those in Matabeleland North got one percent. Youths in Harare Province got 47 percent, those in Mashonaland East received six percent while Mashonaland West and Masvingo got five percent each.
Bulawayo and Midlands provinces received seven percent each while Manicaland got nine percent. Mashonaland Central benefited 10 percent of the money and Mashonaland East youths received six percent."
Mr Benyera attributed the low financing in Matabeleland North and South provinces to the unavailability of industrial opportunities, which forces the youths to concentrate on buying and selling businesses.
"As a bank we process loans through the ministry and the number of applications from Matabeleland North and South were generally low compared to other provinces. We realised that most of their proposals were rejected because they concentrate on buying and selling which makes them ineligible for benefiting from the loans.
"According to the requirements, the youths have to sell local products for them to benefit from the youth fund. But in Matabeleland North and South industrial opportunities are limited such that youths have no option but to travel to neighbouring countries to buy products to sell. There is, however, a need for some changes to be done on the loan facility to accommodate youths from these provinces," said Mr Benyera.
Senior loans officer at the IDBZ Bank Mr Tichaona Kaseke echoed the same sentiments, saying the bank had no control over what comes from the ministry.
He, however, said the Youth Fund was an important facility for youths as they play a pivotal role in creating a vibrant base for sustainable economic development.
"We are striving to reach out to all youths in the country. Our loans have an interest rate of eight percent per annum at six months returning period and three months grace period.
"We, however, do not give loans to youths who are into buying and selling because such business adventures have liquidity problems," said Mr Kaseke.
He added: "Loan applications are submitted through the district offices. The ministry officials ensure that the application forms are properly completed and also conduct appraisal of all projects.
"They only recommend to the bank projects that are bankable and meet all set criteria."
He said the IDBZ youth revolving development fund was launched in 2006.
As of 31 October this year, 644 loans were disbursed with 2 167 jobs created while 1 020 projects are awaiting processing.
ZYC director Mr Livingstone Dzikira emphasised the need for the country to refocus on youths in Matabeleland and negotiate for more money with banks.
"We have to refocus on Matabeleland to build capacity and make the youths in the provinces more productive. Cattle fattening and rearing, mining, timber processing and tourism are some of the projects that are ideal in the region.
"Matabeleland North and South generally have water shortages and there is a need for funding to drill boreholes and promote some of the youths' projects," said Mr Dzikira.
He added: "The youth fund is limited and the projects in the provinces require more money. There is a need for the Government to negotiate with the banks for more money.
"We also have to make use of Vocational Training Centres (VTCs) for young people to get skills. Matabeleland North has been given priority for the construction of a new VTC by the ministry, which is expected to be completed by the end of 2014."
Matabeleland North is the only province in the country without a VTC.
Addressing journalists at a media workshop organised by the Zimbabwe Youth Council (ZYC) at Mazvikadei Leisure Resort in Banket on Wednesday, the CBZ portfolio manager for micro-finance and consumer loans Mr Wellington Benyera said out of the $2 682 777 that was disbursed by the bank since 2009, youths from Matabeleland South and North benefited only two and one percent of the money.
"The bank, through the Ministry of Youth Development, Indigenisation and Empowerment started disbursing loans in 2009 at an interest rate of 10 percent. A total of 2 102 loans valued at $2 682 777 were given to youths countrywide," said Mr Benyera.
"Out of the money, youths in Matabeleland South received only two percent while those in Matabeleland North got one percent. Youths in Harare Province got 47 percent, those in Mashonaland East received six percent while Mashonaland West and Masvingo got five percent each.
Bulawayo and Midlands provinces received seven percent each while Manicaland got nine percent. Mashonaland Central benefited 10 percent of the money and Mashonaland East youths received six percent."
Mr Benyera attributed the low financing in Matabeleland North and South provinces to the unavailability of industrial opportunities, which forces the youths to concentrate on buying and selling businesses.
"As a bank we process loans through the ministry and the number of applications from Matabeleland North and South were generally low compared to other provinces. We realised that most of their proposals were rejected because they concentrate on buying and selling which makes them ineligible for benefiting from the loans.
"According to the requirements, the youths have to sell local products for them to benefit from the youth fund. But in Matabeleland North and South industrial opportunities are limited such that youths have no option but to travel to neighbouring countries to buy products to sell. There is, however, a need for some changes to be done on the loan facility to accommodate youths from these provinces," said Mr Benyera.
Senior loans officer at the IDBZ Bank Mr Tichaona Kaseke echoed the same sentiments, saying the bank had no control over what comes from the ministry.
He, however, said the Youth Fund was an important facility for youths as they play a pivotal role in creating a vibrant base for sustainable economic development.
"We are striving to reach out to all youths in the country. Our loans have an interest rate of eight percent per annum at six months returning period and three months grace period.
He added: "Loan applications are submitted through the district offices. The ministry officials ensure that the application forms are properly completed and also conduct appraisal of all projects.
"They only recommend to the bank projects that are bankable and meet all set criteria."
He said the IDBZ youth revolving development fund was launched in 2006.
As of 31 October this year, 644 loans were disbursed with 2 167 jobs created while 1 020 projects are awaiting processing.
ZYC director Mr Livingstone Dzikira emphasised the need for the country to refocus on youths in Matabeleland and negotiate for more money with banks.
"We have to refocus on Matabeleland to build capacity and make the youths in the provinces more productive. Cattle fattening and rearing, mining, timber processing and tourism are some of the projects that are ideal in the region.
"Matabeleland North and South generally have water shortages and there is a need for funding to drill boreholes and promote some of the youths' projects," said Mr Dzikira.
He added: "The youth fund is limited and the projects in the provinces require more money. There is a need for the Government to negotiate with the banks for more money.
"We also have to make use of Vocational Training Centres (VTCs) for young people to get skills. Matabeleland North has been given priority for the construction of a new VTC by the ministry, which is expected to be completed by the end of 2014."
Matabeleland North is the only province in the country without a VTC.
Source - chronicle
