The Zimbabwean government has rolled out a collateral-free loan facility specifically targeting the country’s youth, a significant move to boost youth entrepreneurship and economic empowerment. This initiative, administered by EmpowerBank, Zimbabwe’s first youth-focused financial institution, was unveiled during its fifth-anniversary celebrations in Harare.
According to a report by Newsday, President Emmerson Mnangagwa, who established EmpowerBank in July 2018, aims to provide young Zimbabweans with essential financial services and solutions to empower them economically. Tinoda Machakaire, the Youth Empowerment, Development and Vocational Training Minister, emphasized that the collateral-free loan facility is a critical step to address the capital challenges young people face, especially those aspiring to enter the manufacturing sector.
“This initiative is a response to the demands of the youth, addressing the challenge of collateral that many young entrepreneurs face when seeking funding for micro-business projects,” Machakaire stated at the event.
He encouraged the youth to leverage this opportunity provided by EmpowerBank to shape a brighter future and contribute meaningfully to Zimbabwe’s economic progress. “I urge all youths and youth associations to seize these government-provided empowerment opportunities to create businesses for income generation and employment,” Machakaire added.
In his speech, Machakaire also highlighted the broader social benefits, suggesting that engaging youth in productive activities could reduce involvement in harmful behaviors such as drug and substance abuse.
EmpowerBank offers a range of financial products, including loans for youth-led businesses and agricultural projects, asset finance, guarantees, and savings accounts, serving areas from urban centers to rural Zimbabwe.
However, Machakaire stressed the importance of loan repayment for the sustainability of the facility. “I call on youth beneficiaries to fulfill their repayment responsibilities to allow other young people to access this funding,” he urged.
In closing, Machakaire pledged continued support for financial inclusion and dedicated quota opportunities for Zimbabwean youth, emphasizing the government’s commitment to prioritizing EmpowerBank’s capitalization needs.
This innovative financial initiative marks a pivotal moment in Zimbabwe’s efforts to support youth entrepreneurship and economic development, offering a new avenue for young Zimbabweans to realize their business aspirations without the burden of providing collateral.
