Mbabane- The Youth Enterprise Revolving Fund (YERF) has recovered 17 per cent of the money it has disbursed to young entrepreneurs.
YERF Corporate Services Manager Banele Nhlengethwa said the Fund had so far disbursed about E3 million through 70 loans this year, while beneficiaries had already started repaying the money.
The repayments are significant because YERF operates as a revolving fund, meaning money recovered from existing beneficiaries can be lent to other young entrepreneurs.
Speaking during an interview on the Eswatini Tv Kusile Breakfast Show, Nhlengethwa said the Fund was encouraged by the number of young people accessing its financing and the repayments being made by beneficiaries.
He said the Fund had also noted growing interest from young people seeking to establish businesses in agriculture, alongside other sectors.
However, Nhlengethwa cautioned that having a business idea was not enough to secure financing.
He said applicants needed to develop business concepts that were innovative, viable and capable of surviving in the market.
YERF considers a number of factors when assessing applications, including the viability of the proposed business, its growth potential, sustainability and the applicant’s creditworthiness.
For sole traders, the Fund provides loans of up to E50 000, with financing available to both start-ups and existing businesses seeking to expand.
Nhlengethwa also highlighted the role of mentorship in supporting beneficiaries after receiving funding.
Successful applicants are assigned qualified mentors to help them manage their businesses, make informed decisions and deal with challenges that may affect their operations.
The combination of financing and mentorship is aimed at improving the sustainability of youth-owned businesses and increasing their chances of surviving beyond the initial stages of operation.
The 17 per cent repayment recorded so far therefore provides an early indication that some beneficiaries are beginning to meet their loan obligations, while also reinforcing the revolving nature of the Fund.
As repayments continue, the recovered funds can be redirected towards other young people seeking capital to establish or expand businesses.
Nhlengethwa urged prospective applicants to carefully consider the commercial potential of their ideas before approaching the Fund, saying businesses needed to demonstrate realistic prospects of generating income and growing over time.
With E3 million already disbursed to 70 young entrepreneurs this year, the performance of beneficiaries in repaying their loans will remain important to YERF’s ability to extend financing to a wider pool of young emaSwati.
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