YOUTH, Indigenisation and Economic Empowerment minister, Patrick Zhuwawo, has scoffed at reports that most youths who benefited from government-guaranteed loan deals were failing to service their loans.
BY KENNETH NYANGANI
Speaking at the handover of BancABC — sourced irrigation equipment and computers to Magamba Vocational Training Centre in Mutare on Saturday, Zhuwao said the bad debtors’ tag placed on youths was a myth. The donated equipment was worth $100 000.
“The youths are not as bad as you say. The story is how much has gone to Zamco (Zimbabwe Asset Management Company( that is where the story is , yet you want to say that the youths are responsible for the current poor state of the financial services sector and consider that they contribute 56% on economic activities in the country. The youths are not bad at all,’’ he said.
Zamco is a special purpose vehicle formed by the central bank to undertake cleansing of the banking sector by taking over secured bad loans.
To date, Zamco has acquired $242 million worth of non-performing loans.
Said Zhuwao: “First look at the money, you are not looking at facts and regulators need to put together the proper issue on this matter because we don’t want to misplace the priority.’’
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Youths have been blamed by financial institutions for failing to service various loans extended to them for various projects, particularly the Kurera Ukondla Youth Fund.
“We have a lot of young people who are involved in economic activities, but they are failing to find access to market is limited. The fact is that there is little space afforded for the consolidation of their production,’’ he said.
“Our youths need to be financially included , production should create space for youths to access markets, and one of the things we should be able to recognise is that youths are at the forefront of innovation in this country and businesses that are not do not recognise youths are doomed to fail.’’
Speaking at the same ceremony, BancABC country’s head of retail, Rufaro Hatendi, said his financial institution always supports nation-building initiatives such as youth development.
“BancABC part of Atlas Mara recognises the importance and need to support nation building initiatives such as youth development. The youth being the most valuable segment to the country’s future need to be empowered and supported,’’ he said.
