18 Jan 2022

Forty small business owners in Francistown have been funded by the Ministry of Youth Empowerment, Sport and Culture Development under the Youth Development Fund (YDF).

Francistown YDF deputy district coordinator, Ms Thelma Chaya said they received over 170 proposals and in their consideration, the ministry prioritised sectors that could help the economy recover from the COVID-19 pandemic.

She said agriculture, manufacturing, technology, innovation and tourism were the main priorities when selecting businesses to fund.

She added that different experts were enlisted to go through the proposals and make recommendations, which were presented to the board for approval.

“The selected 40 businesses owners were taken through a week long basic business training to equip them with insights on different aspects of running and managing a business before signing a memorandum of agreement,” she said.

She said issues addressed  during the training included defaulting in paying back the loans and corruption.

Ms Chaya said although the maximum loan one could get was P100 000, business owners could ask for lesser amounts depending on how much they believed they would be able to pay back.

“The appraising team also advised on how much money was reasonable for the requirements of the business that they had requested funding for in the proposal,” she said.

Ms Chaya said the approved businesses were given three months grace period before repaying the loan, adding that  the beneficiaries were expected to utilise the funds wisely.

“The loan is to be paid back in five years, but we do have cases where the time is extended for applicants who encounter problems in cash flow after coming up with a favourable payment plan,” she explained.

To avoid defaulting, she said reminder letters and phone calls were used to reach out to the companies to ensure that they always knew how much money they still had to pay back.

She also added that YDF monitored all transactions to ensure the funds went into what they were intended for.

“The cheque books are kept by our officers and for every transaction the business should approach us and request the amount they need withdrawn,” she said.

Ms Chaya advised the 40 businesses to network with sectors and industries they specialised in to grow and never to abandon the initial plans they had for their business.

“Discipline is very crucial and it is the only way to avoid distractions and temptations that will lead to the downfall of the business,” she added.

She encouraged those funded to be free to come to their offices and to find a way to get help when they encountered challenges. ENDS