Youths are a key component of economic growth, however they are facing challenges in terms of access to credit lines to increase production and start viable projects that have the potential to increase employment, national economic growth rates among other key indicators.
Experts therefore contend that high default rates, prohibitive lending or borrowing terms, collateral requirements have resulted in youths failing to get access to the loans.
Zimbabwe’s economy needs active youths participation to increase value in key productive sectors.
With official data showing youths account for more than 50 percent of the population, the current high interest regime and limited bankable projects have resulted in banks developing a cautious approach in funding youth projects, said an economist Mr Ignatious Matuingamire.
But taking into consideration that loans are a key source of business for the banks tight lending or borrowing terms have also created challenges for the youths, according to a businessman Mr Shepherd Kembo.
With the government forging ahead in establishing empowerment funding policies youths are experiencing several challenges in accessing low cost capital in Zimbabwe, said another businessman Mr Bernard Kasekete.
The country is in need of local or domestic investments to create sources of additional financial inflows, increase employment opportunities, improve production, generate the much needed foreign currency, to the extent that it is high time urgent policies are put in place to solve funding challenges affecting the youths in Zimbabwe.