Mbabane: In the blink of collapse.
Some Youth Enterprise Revolving Fund (YERF) funded businesses are in the blink of collapse as about 56 businesses require financial relief to the value of E1, 195,279 in order for the businesses to be resuscitated. Without such financial relief, the businesses stand to shut down completely.
This shocking revelation was made by the Chief Executive Officer (CEO) of Youth Enterprise and Revolving Fund Bhekizwe Maziya in a media briefing on the state of approved loans and launching a new loan application window at Mahlanya on Thursday.
Maziya said YERF therefore requires assistance from partners in availing any kind of support for the affected businesses to be resuscitated and save jobs as more still stands to be lost.
Unpacking how the business that were funded has performed, Maziya said the impact felt was relatively huge as about 25% of the YERF funded businesses completely closed operations during the lockdown.
Maziya revealed that amongst the funded businesses, only 35% continued with their normal operations while 25% completely closed operations and yet 40% were gradually opening up with the relaxation of the lock-down regulations.
Maziya noted that most of the businesses experienced a decrease in revenue as well as employee lay-off. He said a total of 71 employees amounting to 21% were laid off during the period.
Worth noting was that the fund saw a 63% increase in the number of businesses requesting loan deferment as well as 48% that require financial relief.
However, Maziya said not all businesses were negatively affected, some were impacted positively especially those that provide essential services. As a result, about 26% of businesses reported that they do not require any form of assistance.
Maziya said the pandemic has negatively affected most businesses and those funded by the YERF were hugely impacted.