THE majority of the country’s youth are shut out of existing funding opportunities as they do not possess assets required by traditional lending institutions.
Youth Empowerment, Development and Vocational Training minister Tinoda Machakaire called for the removal of the collateral requirement on youth funding, saying the system is excluding many young people from accessing critical financial support.
“Collateral requirement remain one of the biggest barriers to youth's access to finance. The majority of young people simply do not have the assets needed to meet these conditions,” he said during engagements at the ongoing Zimbabwe International Trade Fair in Bulawayo.
He urged the government and financial institutions to urgently consider reforms that promote inclusive and flexible funding models tailored to the realities of young entrepreneurs.
“If we are serious about empowering our young people, we must rethink how funding is structured and ensure it is accessible based on potential, innovation and viability, not just asset ownership,” he said.
“Our young people are creative and ready to contribute to the economy, but lack of access to capital continues to hold them back.
“Removing collateral the requirement can unlock that potential and stimulate economic growth.”
Added Machakaire: “Young people must rise to the occasion, take advantage of available opportunities and play their part in building the nation.
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“They should not allow their backgrounds or current circumstances to define their future.”
Meanwhile, Procurement Regulatory Authority of Zimbabwe chief executive officer Clever Ruswa challenged young entrepreneurs to actively position themselves to benefit from government procurement opportunities.
He referred to procurement opportunities as a “public cake”, accessible to businesses that meet regulatory requirements.
Notably, procurement activity has recorded a 58% year-on-year growth, signalling expanding prospects for entrepreneurs.
“Youths must formalise their businesses and ensure proper registration,” Ruswa said.
On the policy front, Ruswa revealed that amendments to the procurement law are before Parliament.
The proposed changes aim to strengthen provisions under section 29 of the Act, which focuses on domestic preference and support for previously disadvantaged groups, including youth-led enterprises.
