Mbabane: Amidst the effects of the COVID-19 pandemic battering world economies, the Youth Enterprise Revolving Fund (YERF) is once again looking to give a head start of success to young entrepreneurs.
The YERF will be opening its first call for loan applications in 2021. This was announced by the Minister of Sports Culture and Youth Affairs, Harries Madze Bulunga in a press conference held at the City Court Hotel on Wednesday morning.
Normally the applications are opened every quarter of the year but due to the COVID-19 pandemic, the Fund has missed two calls for applications.
Bulunga said the call for applications will be opened from June 1, 2021, to June 30, 2021.
In an interview with this publication, Maziya said they were prepared and ready to take in new loan applications.
The applications are opened to every young liSwati between the ages of 18 to 35. All the eligible entrepreneurs are encouraged to take advantage of this opportunity. The applications will be open for both start-up entrepreneurs and existing businesses that require expansion.
According to Maziya, all sectors qualify for funding, however, the Fund encourages the youth to consider sectors that have the potential to create more employment for others. Innovative businesses that exhibit creativity are encouraged.
In the loan applications an individual can get up to E50 000, E100 000 for a registered company and cooperatives E150 000. The loans are payable over a period of 36 months (medium-term), the seasonal term is 12 months whilst the short term will take up to 24 months.
Loan Increase
The YERF CEO Bhekizwe Maziya said the fund has developed a new product called a loan increase. Maziya said it has come to the attention of the Fund that some of the funded businesses have grown faster than the beneficiaries had anticipated. He said the growth requires additional funding while the business owners are still servicing the debts, which made it difficult for the fund to grant such entrepreneurs an additional loan since most of them had received the maximum lending limit.
Maziya said the Loan Increase product will come to the rescue of entrepreneurs and it will be accessible to beneficiaries who have repaid at least 50% of their loans and are in good standing. In this category, Maziya said the businesses must display how the business will grow from the additional loan. The funding limits are as follows:
- Sole traders – E50,000.00 – E70,000.00
- Companies – E100,000.00 – E200,000.00
- Cooperatives – E150,000.00 – E200,000.00
Maziya said interest rates that will be charged to the applicants will remain the same interest rate charged on the initial loan.
Youth Enterprise Fund is a Category A Parastatal that was established in 2008 by the Government in response to His Majesty King Mswati III’s vision. The Parastatal is under the Ministry of Sports Culture and Youth Affairs. The main purpose of the Fund is to promote youth employment and alleviate poverty among young people between the ages of 18 – 35 years old.
Discussion about this post