Zimbabwe youth bank flops

Published: 11 December 2013

THE Zimbabwe Youth Development Trust's initiative to form a youth bank that will provide financial solutions to the informal market has hit a snag as the trust's application for mineral concessions is yet to be approved.

ZYDT successfully applied for a banking licence from the Reserve Bank of Zimbabwe earlier this year but the bank's operations were supposed to be sustained through mining.

The organisation signed a Memorandum of Understanding with the Zimbabwe Mining Development Corporation for the provision of mineral concessions that ithad been applied for.

In an interview, ZYDT president Mr Aaron Mpandawana said their application was still with the Ministry of Mines and Mining Development awaiting approval and this had put everything on hold.

"The Zimbabwe Youth Development Bank will be buttressed by mineral resources so we are still waiting for the ministry to give us a piece of land to mine, especially in Chiadzwa. We engaged the minister and he promised us that the matter would be looked into as soon as possible," he said.

He said the move to apply for a banking licence had come about following concerns raised by many youths over the failure by banks to offer afford-able loans to the informal sectors of the economy.

He also urged the Government to work with the ZYDT in order to address the problem of rising youth unemployment and closing down of companies.

"Government should take us seriously so that we can help in the fight against unemployment and collapse of industry. This initiative will help in the empowerment of the millions of youths who have nothing to do," he added.

Mr Mupandawana said the bank is expected to provide capital and technical support for infrastructure and economic development towards broad-based empowerment for upcoming business people.

He said the financial institution would also bridge the gap between youth-led development initiatives and existing funding opportunities from public and private sectors.

One of the objectives of the bank is to mobilise deposits and promote a savings culture among informal markets as well as upcoming businesses and avail resources for productive on-lending.
- herald

Tags: Bank,