YEDF: another dashed hope?

BY WATIPASO MZUNGU JNR

A 23-year old Agness Thomas attended and successfully completed Project Management and Business Plan writing training sessions National Youth Council of Malawi (NYCOM) organized in readiness for the now faltering Youth Enterprise Development Fund (Yedf) loans.

What surprises, and even worrying Thomas, though, is that there is no sign when the loans will be given to the beneficiaries for them to start investing in their chosen businesses. So far, what the Ministry of Youth Development and Sports, which is tasked to oversee fund, has been changing dates for the disbursement of the loans as if they are changing clothes.

“I wonder if these loans will ever be disbursed at all. Sometimes I feel YEDF is nothing, but another campaign tool conveniently introduced to woo the youth into voting for the ruling party,” she reasons.

In a country where unemployment rates rise at an unstoppable speed, the role of small and medium enterprises (SMEs) cannot be overemphasized.

In an earlier interview this year, NYCOM executive director Aubrey Chibwana said Malawi had more than 4 million young people of employable age as of 2006 while only 18 percent managed to get jobs.

Chibwana was, however, quick to state that the figures could be more than that today as more and more young people are graduating from colleges without steady employment opportunities.

Experts and prospective employers give a litany of factors preventing them from engaging young people that have just finished their school. Lack of practical and technical skills (experience) is chief among them.

SMEs, therefore, offer the youths the much needed option for them to actively participate in the socioeconomic activities in their communities.

There are so many people in the country dreaming to start own [small] companies, which would also create job opportunities for others as time goes by. This dream, however, is always dashed by lack of capital.

Economists state that one needs enough capital to venture into entrepreneurs. And the capital must be sufficient to finance the start-up costs of the business, plus access to additional capital to fund further growth. 

“It’s the lack of capital that most frequently keeps me from becoming self-employed,” says George Banda, 27, of
Malema village, Traditional Authority Kyungu in Karonga.

The launching of the fund by President Bingu wa Mutharika early this year further raised Malema’s hope for a future. 

Among other things, Mutharika said he conceived the fund to address the challenges of youth unemployment by providing the youth with knowledge, essential skills, and opportunity to engage in entrepreneurships as a self-employment mechanism.

Everybody applauded the president for his wise decision to help the loafing youths whose participation in economic development initiatives continues to be impeded by a number of challenges which include limited access to post-primary and secondary vocational training, limited access to credit and inadequate employment opportunities, among others.

“By investing in our youth, we will afford them an opportunity to focus their energies into productive activities and thereby improving their living standards,” said Ken Kandodo Banda when he presented the then proposed K3billion Youth Enterprise Development Fund to the National Assembly.

 

Our legislators saw the difference the fund was likely to make our lazing youth thus they did not take time to approve the fund giving way to the president to launch it.

But Thomas and Banda are today wondering if whether the fund will ever change their lives noting the many excuses coming from the administrators of the loans when asked on what is delaying its disbursement.

In July this year, Youth Development and Sports Minister Dr. Lucius Kanyumba said assured the nation that everything was ready for Malawi Rural Development Fund (Mardef) to start disbursing loans to the youth entrepreneurs who had applied for loans.

A few weeks later, the nation was told to wait a little longer as the authorities were sorting some things before the exercise could roll out.

“These perpetual postponements keep us wondering and doubting the sincerity of the authorities regarding this fund. It’s not enough just to train us. On what are we going to use our Project Management and Business Plans?” they ask.

“Why can’t they tell us the truth about the loans? If it was a campaign tool, just tell us so we can try other means than keeping us waiting in vain. We’re hopeless,” added the youth, rather disappointedly.

For Chisomo Jimmy of Chiwembe Village in Blantyre, it is not the delay worrying him, but the declaration by Mutharika that preference to access the loans should be given to Democratic Progressive Party (DPP) supporters.

“I belong to no party apart from being a mere voter. I’m afraid some of us may not benefit from the loans based on party lines and this will be very unfortunate,” Jimmy states.

Centre for Human Rights and Rehabilitation (CHRR) director Undule Mwakasungula thinks Mutharika’s statement is not only discriminatory against non-DPP youths, but also in direct conflict with the basic tenets of multiparty democracy which allow citizen to belong to any party of their choice without threats of facing discrimination of any kind.

But Kanyumba believes there is no need for young people to break their oblongata with worries, saying government will implement the project come what may.

“There is no need for worrying and panicking. Government is set to fulfill all its promises,” he assures.

But maybe the youths are justified to cry for the funds now because the more months turn into years; the more likelihood for them to forget the skills they acquired during those “Project Management and Business Plan writing sessions”.

END