01 Nov 2016

 The day Mr Bhikimbilo Sibanda started his graphic design business was the day he tested financial independence.

However, the Youth Development Fund (YDF) wanted back half of the money spent on the business start-up.

This was part of the deal where Mr Sibanda dismally failed, not because the business was failing to pay back the money, but because he chose not to pay.

“It was just negligence on my part not to pay, ever since I was funded, I have not encountered many challenges,” he confessed before a stakeholders’ workshop in Tlokweng.
Another funded youth, Mr Kagiso Odirile chose the same route.

“Honestly, I have taken loan repayment lightly, even though my business faces challenges, I can still afford to repay,” he said to the amazement of stakeholders.

Although a non-payer, Mr Odirile was often engaged by government departments including the Ministry of Youth Empowerment,Sport and Culture Development for his catering services.

This alone was reference enough to attest that Mr Odirile’s business was making adequate money for him to service the loan.

The two were an insignificant example of many youth across the country who failed to repay their loan portions back to government.

In the South East District alone, a total of 117 projects were  financed to the tune of P10.9 million of which government was expecting to recover about P5.5 million.

According to programmes officer in the Ministry of Youth Empowerment, Sport and Culture Development, Ms Maitumelo France, about eight per cent had been returned to government coffers to date.

She said YDF arrears surpassed P1 million and noted that out of all the financed projects, only 85 were operating while some had collapsed  or relocated.

Even though government, as part of the memorandum of agreement between the ministry and youth beneficiaries added five per cent interest on defaulters, Ms France observed that this had not been deterrent enough to default.

Speaking in the side-lines of the workshop, some youth blamed laxity in the system for their failures.

According to them, there is little effort to recoup the money from young people and many do not feel pressure to pay back.

The Ministry of Youth Empowerment, Sport and Culture Development District Coordinator in the south east region, Ms Tiny Gontse said she has noticed that youth keep their debts away from their parents and guardians.

Therefore, she told young people that the ministry will take drastic actions to ensure that young people pay back.

Failure to pay back and keep business in operation is of the concerns that government is faced with according to a South East deputy district commissioner, Mr Richard Boitshwarelo.

“We are worried that these programmes are not giving the expected results, “he added.

He explained that YDF is one of government programmes aimed at creating employment and eradicate poverty.

Though conceding that some of the projects have collapse, he said some are doing well yet they are failing to pay back. ENDS