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Business Financing: A Pipe Dream for Matobo Youth

Lack of access to financial institutions deters Matobo youths from achieving their dreams. Image by Newsday


BY NQOBILE BHEBHE | @The_CBNews | This email address is being protected from spambots. You need JavaScript enabled to view it. | JUN 12, 2021

For youths in Matobo, setting up businesses without access to credit is close to impossible. Banks are out of reach, but even with access, collateral is non-existent.


MATOBO (The Citizen Bulletin) — Anele Nkomazana’s quest to set up a gas business venture in Matobo’s ward 19 district to economically empower himself and contribute to the region’s growth is fast fading away.

His major challenge is that of raising capital to purchase required machinery.

He requires ZWL$6000 to set up his planned venture. However, there are no financial institutions in his district that offer loans for start-ups.

“In my ward or district, we do not have financial institutions that offer loans for youths to set up businesses,” says 24-year-old Nkomazana.

“My peers have brilliant business ideas and if granted capital, we can set up sustainable ventures. I desire to venture into gas trading. All I need is $6000.”

Nkomazana adds that they do not receive information on empowerment programmes for youths as they are in remote areas.


“We are left out on economic developments. There are no banks here.”
Anele Nkomazana, a 24-year-old aspiring entrepreneur


Matobo Youth Development Initiative (MYDI) director Descent Dube says there is tremendous potential among the youth in Matobo if allowed to run successful start-up businesses.

According to Dube “young people in Matobo do not have access to financial information thus they do not know for example simple processes of opening a bank account.”

The nearest banks are in Bulawayo and Gwanda, which also presents a challenge, over 100 kilometres away.

Empower Bank, which is mandated to provide social and financial solutions with a greater focus on the youths, does not have a branch in the district.

Central Government created the micro-banking unit in 2018 to specifically support different youth initiatives to achieve economic empowerment and financial inclusion.

Banks should decentralise their services to remote areas.


It mobilises youths through financial literacy and project proposal training so that they present bankable business proposals to access funding.

This year, it has set a target of disbursing loans worth about $260 million to youths countrywide.

However, youth in outlying areas are left out as the bank does not have district branches

“The fact that Empower Bank which seeks to empower young people does not have an office/branch in Matobo makes things difficult for youths,” Dube says.

“Even if Empower Bank does outreach programmes in Maphisa, it’s important to note that Matobo has 24 wards and most of those wards are secluded and have poor mobile and road networks.”

“The fact that banks are in urban areas means that if they want to open bank accounts, they have to commute and that is expensive.”

The Citizen Bulletin reached out to the bank on the 1st of June but could not obtain responses from the institution.

Descent Collins Bajila, a youth social empowerment campaigner is of the view that banks should decentralise their services to remote areas.

“The distance that one has to travel to the nearest bank is a barrier for accessing banking services and loans,” Bajila says.

“It is important that state and private run banks create space and operate in those remote areas. Only Agribank is available in Bulilima, uMzingwane and Matobo.”

However, accessing bank institution premises does not translate to access to loans and/or capital.


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Dube says another hindrance for the youths is that of collateral demanded by banks as most young people do not have anything tangible to offer as collateral.

“As community development organisations and other stakeholders, we must get more involved so that there is a collective approach in ensuring that there are banks that will make things easier for youths and open opportunities.”

Due to lack of financial support “youths in Matobo will continue to wallow in poverty and be forced to migrate to South Africa or Botswana,” Mildred Maphosa says.

Maphosa has interests in setting up a dressmaking business.

She feels that there is a need for the Government to revise the collateral requirements for one to access facilities under the Empower Bank.  

“The current requirements make it difficult for poor youths who may not own assets such as cars and houses.”


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