GOVERNMENT says disbursements under the US$1 million Youth Economic Empowerment Fund will begin this week, marking a transition from policy to implementation as efforts intensify to expand economic opportunities for young people across the country.
The fund is aimed at addressing persistent financing gaps that have long prevented many young entrepreneurs from accessing capital, particularly those without collateral or formal banking history.
The development follows commitments made during last year’s National Youth Empowerment Symposium, where the government pledged to improve access to youth loans and strengthen entrepreneurship support programmes.
Speaking to NewsDay, Youth Empowerment, Development and Vocational Training minister Tinoda Machakaire said the fund was designed to remove long-standing barriers that have historically excluded young people from financial services.
Machakaire said feedback from youths during the October symposium played a key role in shaping the fund's structure.
“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.
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Youth feedback has been central to the design of this fund. The October symposium provided valuable insights and we have taken deliberate steps to ensure that the concerns raised are reflected in the structure and delivery of this initiative.
“We have ensured equitable distribution of resources across all 10 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.”
The fund introduces alternative lending mechanisms tailored for young Zimbabweans who often lack formal banking history or conventional collateral, shifting towards more inclusive financing models.
“The Youth Economic Empowerment Fund has been deliberately designed to dismantle the traditional barriers that have historically excluded young people from accessing finance.
“Through our strategic partnership with EmpowerBank, we are offering innovative, youth-friendly financial products that move beyond conventional collateral requirements.
“We are also promoting a culture of collective responsibility, where youth form lending groups that cross-guarantee each other, thereby strengthening accountability and access.
“Young entrepreneurs can access funding using alternative forms of collateral such as group guarantees and livestock pledges, without surrendering ownership of their assets.”
Disbursements are expected to be imminent as due diligence processes near completion, with authorities working to ensure funding is directed towards credible and sustainable enterprises.
“We are now finalising the first batch of beneficiaries, with disbursements expected to commence in the first week of May, whereby currently, EmpowerBank is conducting rigorous assessments, including project appraisals and verification visits, to ensure that funding is directed to credible and sustainable enterprises.
“To date, and with strong support from development partners, the ministry has mobilised approximately US$1,2 million dedicated to youth projects.
“These resources have been channelled into small loans and grants ranging from US$500 to US$2 000… enabling them to start, grow and sustain viable businesses,” he said.
With disbursements set to begin, the ministry says the focus now shifts to implementation, accountability and scaling up impact nationwide.