25 May 2021

The increasing number of Youth Development Fund (YDF) loan defaulters is said to be disappointing.

During a tour of eight youth projects in the Thamaga/Kumakwane constituency recently, Minister of Youth Empowerment, Sports and Culture Development, Mr Tumiso  Rakgare expressed disappointment at the slow pace at which beneficiaries were servicing their loans.

He said it was thus important for individuals to be encouraged to pay back the loans, to enable others to benefit and show appreciation for the government’s generosity.

 “Let us double our efforts in servicing our loans to avoid repercussions that may occur as a result,” warned Minister Rakgare.

He reminded beneficiaries that they were required to pay back their loans within a five-year period, to avoid reparations as well as loan interest, due to defaulting.

The ministry’s Deputy Permanent Secretary, Mr Kgopotso Ramoroka said they continued to encounter individuals who were reluctant to pay back their loans, failing the programme’s objective of empowering a significant number of youth.

 Mr Ramoroka said although monitoring was key, it was also important for beneficiaries to honour their obligations to repay their loans and communicate problems encountered in the process, if any.

Acknowledging that officials were supposed to take the journey with beneficiaries, he however said it was the responsibility of beneficiaries to take a leading role, adding ‘your debt is your responsibility’.

Kubung area councillor, Mr Mmolotsi Phatsime, a 2012 YDF beneficiary, who owns a single hectare in a horticulture cluster farming project that houses eight farmers at Kubung area, blamed officials for the increasing number of defaulters, due to lack of support and poor monitoring. 

Cllr Phatsime argued that it was not fair to question him about the pending loan without establishing impediments encountered in the process. “Let us all admit to have failed on our obligations, as we all had a role to play,” he quipped.

He also bemoaned the growing challenges in securing market for their produce, saying in most instances, retailers determine prices, leading to losses.

Of the eight projects that the minister visited, only one beneficiary confirmed to have started servicing her loan, while the other seven cited various reasons such as predators, diseases and mortalities due to natural disasters as major hindrances to their project growth.

Ms Onyana Modise of Chaokeng Lands reported losing 23 goats in two consecutive years, due to lightning, but made a commitment to sell some of the small stock to service her loan.

Thamaga/Kumakwane MP, Mr Palelo Motaosane called on officials to closely monitor projects and push defaulters to service their loans for others to benefit as YDF was a revolving fund. ENDS