By 
By Siphesihle Dlamini
Boost for young entrepreneurs in Eswatini!
The Youth Enterprise Revolving Fund (YERF) has approved loans totalling E1,289,217, as highlighted in the Ministry of Sport, Culture and Youth Affairs’ First Quarter Performance Report for the 2024/25 fiscal year.
This initiative aims to foster entrepreneurship among the youth by providing vital financial support to those looking to start or expand their businesses. The YERF serves as a crucial lifeline for budding entrepreneurs, empowering them with the financial resources necessary to translate their innovative ideas into viable business ventures.
The first quarter of 2024/25 saw a promising start, with 26 loan applications approved, reflecting the growing interest among young people to engage in entrepreneurial activities.
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The introduction of Eswatini Development Finance Corporation (FINCORP) as the new financial intermediary marks a strategic enhancement in the loan processing framework.
This partnership is designed to streamline operations and improve the efficiency of loan disbursement. In this quarter alone, FINCORP has processed 18 loan disbursements amounting to E761,421, showcasing an effective collaboration aimed at facilitating access to funds for aspiring business owners.
A closer examination of the loan pipeline reveals a robust interest in the YERF initiative, with a staggering 179 loan applications currently awaiting credit review. This figure underscores the hunger for financial support among the youth in the region.
Out of the first batch of submissions sent to FINCORP, 115 applicants have been engaged, with 95 actively participating in the review process.
The outcomes of this initial batch reflect a mixed response: while 26 applications have been approved, 26 were declined, and 17 were deferred for further review. Additionally,
23 applications are currently being prepared for the Credit Committee’s evaluation, and 16 are awaiting site visits to assess the viability of the proposed business ventures.
This thorough review process is indicative of YERF’s commitment to ensuring that funds are allocated to promising and sustainable business ideas.
The YERF initiative aligns with broader governmental objectives of promoting youth empowerment and economic development.
By facilitating access to finance, the fund not only supports individual entrepreneurs but also contributes to job creation and economic diversification in the region.
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The impact of these loans extends beyond mere financial assistance; they represent an investment in the future of the economy, fostering innovation and resilience among the youth.
As the fiscal year progresses, the YERF is poised to continue its efforts in nurturing the entrepreneurial spirit among young people. The robust pipeline of applications indicates a vibrant interest in entrepreneurship, suggesting that more youth are recognizing the potential of self-employment as a viable career path.
The recent approvals of loans by the Youth Enterprise Revolving Fund signify a critical step towards empowering young entrepreneurs and supporting economic growth.
