Economic analyst John Robertson said banks were not doing enough to train young people. “The banks are not contributing to employment and not helping the growth of young entrepreneurs,” Robertson said.
He said most people were taking out short-term loans but for business purposes only long-term loans were viable.
The informal sector is the biggest employer in Zimbabwe. According to the Economist Erich Bloch said it was important to harness the informal sector and make it formal in order to help youths.
“We need to enable the informal to move to the formal sector. That will help create both employment and entrepreneurship opportunities,” he said. Bloch said current indigenisation laws remained a huge barrier to effective delivery by the financial services sector.
“Unemployment is increasing. We need indigenisation and empowerment but in a constructive way. We cannot afford to be discouraging foreign investors. Indigenisation should not be seen to be benefiting only a few well connected individuals,” he said.Post published in: News