US$1m youth fund rollout begins

The Government of Zimbabwe says disbursements under the US$1 million Youth Economic Empowerment Fund will begin this week, marking a shift from policy to implementation as efforts intensify to expand economic opportunities for young people.

The fund is designed to address long-standing financing gaps that have prevented many young entrepreneurs from accessing capital, particularly those without collateral or a formal banking history.

The development follows commitments made during last year's National Youth Empowerment Symposium, where authorities pledged to improve access to youth loans and strengthen entrepreneurship support programmes.

Speaking to reporters, Youth Empowerment, Development and Vocational Training Minister Tinoda Machakaire said the initiative seeks to dismantle barriers that have historically excluded young people from financial services.

"Following the National Youth Empowerment Symposium held in October last year, the ministry has made significant and measurable progress in implementing the commitments that were announced, particularly in the areas of small loans, vocational training and mentorship programmes," he said.

Machakaire noted that feedback from young people played a central role in shaping the fund's structure, with authorities ensuring equitable distribution across all 10 provinces and relaxing collateral requirements to improve accessibility.

"We have ensured equitable distribution of resources across all provinces, addressing concerns around regional imbalances and significantly relaxed collateral requirements, introducing flexible and accessible security options that respond directly to the realities faced by young people," he said.

The fund introduces alternative lending models tailored for youth, including group-based guarantees and the use of non-traditional collateral such as livestock, allowing beneficiaries to retain ownership of their assets.

Through a partnership with EmpowerBank, the government is rolling out youth-friendly financial products aimed at promoting inclusion and accountability.

"We are also promoting a culture of collective responsibility, where youth form lending groups that cross-guarantee each other, thereby strengthening accountability and access," Machakaire added.

Authorities say disbursements are imminent as due diligence processes near completion, with EmpowerBank currently conducting project appraisals and verification visits to ensure funds are allocated to viable enterprises.

"To date, and with strong support from development partners, the ministry has mobilised approximately US$1,2 million dedicated to youth projects," he said.

The funds will be distributed as small loans and grants ranging from US$500 to US$2 000, enabling young entrepreneurs to start, grow and sustain businesses.

With the rollout now underway, the ministry says the focus will shift to implementation, accountability and scaling up the initiative's impact nationwide.