Govt lists beneficiaries of YDF on CRB | WestMac Media

By Staff Writer, Lusaka 

GOVERNMENT through ministry of Youths, Sports and Child Development has listed Youth Development Fund (YDF) Loan beneficiaries on the Credit Reference Bureau (CRB). 

The Ministry Spokesperson, Muma Mukupa says this will help to show other Financial Institutions the credit history and performance of the YDF beneficiaries.  

“A poor credit rating on part of any YDF beneficiary will make it very difficult if not impossible for such a beneficiary to obtain credit from other financial institution. On the other hand, a good credit performance and history on part of the YDF Loan beneficiaries will make it easy to obtain credit from Commercial Banks and other Financial Institutions,” says Mr Mukupa. 

Mr Mukupa explains the objective of YDF was to provide seed money to youth led enterprises to help them to start or expand their businesses for wealth and employment creation. 

He adds that YDF is a revolving fund, and therefore, all beneficiaries are required to pay back and the repayment periods range from one year to three years depending on the amount of the loan. 

Mr Mukupa further says YDF is an effective tool to help mitigate youth unemployment. 

“It is also a tool meant to contribute to the Economic Diversification and Job Creation and Poverty and Vulnerability Reduction Pillars of the Seventh National Development Plan (7NDP) From 2012 to 2016, the Ministry had disbursed a total of K51.7 Million to a total of 1,850 youth beneficiaries. While most of these beneficiaries are running successful businesses, most of them have willfully neglected to pay back the loans. As at 31st August, 2018, the YDF Loan repayment rate was at 7% giving a loan default rate of 93%. This situation is denying other youth an opportunity to also access the YDF to finance their many brilliant business ideas, thereby denying them of an opportunity to earn a living and contribute to national development,” he explains. 

The Spokesperson mentions that against this background the Ministry has signed a Service Level Agreement with Transunion T/A Credit Reference Bureau Africa Limited to list all YDF Loan beneficiaries on the CRB. 

Mr Mukupa has since appealed to all the YDF Loan beneficiaries to clear their loans so as to stand a chance to benefit from other Government Citizen Empowerment Initiatives and also access financial support from financial institutions. 

“The listing on the CRB will not just end with the 1,850 Youth Development Fund beneficiaries but will be extended to all beneficiaries of all Youth Empowerment initiatives. These include the Youth Bus Drivers Empowerment Scheme, Motorized Cargo Tri-Cycles, ICT Businesses and the Youth Vendors Empowerment Scheme. I therefore call upon all the beneficiaries of these schemes to start paying back the loans so that their credit rating is good. 

“The Government has seen a number of weaknesses in the implementation of various citizen empowerment initiatives and is in the process of reviewing the implementation modalities and management of these initiatives. The Government will soon make announcements of the way forward in the implementation of citizen empowerment initiatives once consultations are concluded with stakeholders,” he said.