But he is failing to grow his business due to a lack of funds although he has been shortlisted to benefit from the CABS Old Mutual youth fund. He said he was informed around June last year that his application had been approved. But his project is still to be assessed.
Government representatives and officials from the banks that administer the funds recently told a youth workshop that it was impossible for them to conduct assessment visits in areas where there was only one approved project.
Kuwanje’s business is based in Karoi but he recently got space at a Willowvale industrial site owned by a relative, where he hopes to set up shop once the money is available. He has since applied for another loan through a recently introduced facility reserved for youths with disabilities and he hopes that will be successful.
He was bitten by a snake in his first year of secondary school and lost proper use of his right leg. “I can’t even remember how many operations I went through,” he said.
However, the $5,000 on offer is not adequate for his business. “It’s not enough – but it will give me some mileage and I have some private investors I am currently negotiating with who can inject $25,000 more into the project,” he said.
He said at the moment his business can only sustain orders up to $500, which limits him to smaller clients.
“This means I cannot deal with bigger companies, which pay better and are more reliable because I don’t have the capacity to supply big orders,” he said.
Facility abused
Kuwanje’s story mirrors that of many youths seeking support from the government’s youth funds.
Many young people genuinely seeking to go into business are upset with their counterparts who have abused the facility. For example, the Infrastructure Development Bank of Zimbabwe fund relies on repayments in order to make new pay-outs. But the majority of loans are not being repaid.
Some youths reportedly used the money to pay lobola. Charles Chikaura, the IDBZ chief executive, recently told parliamentarians that out of $450,750 it disbursed, only $197,391 was recovered.
CABS said of the $4,4 million it has disbursed, arrears currently stand at $2,3 million with total non-performing balances of just over $3,1 million.
Post published in: News