MPs ask government to explain youth funds

By John Odyek and Henry Ssekanjako

Parliament has asked government to provide details on the names and number of youth in various districts who have received funds under the Youth Venture Capital Fund.

Beatrice Anywar Kitgum district woman MP said on Wednesday many youth in the country were bitter about difficulties in accessing the funds and criteria used to access the funds.
 "If only existing business owners are allowed to get the funds then the children of the poor will not get funds, it would be unfair to them," Anywar said.

Government early this year signed an agreement with three commercial banks to create a sh25b Youth Joint Venture Fund. The fund was set up with a sh12.5b contributed by government in partnership with KFW, a German Development agency.

An additional sh12.5b mobilized by Stanbic Bank, Centenary Bank and DFCU. The interest rate is set at 15% with charges and fees capped at 1%. Additional funds of sh6.5b have been in the national budget. This brings the total funds to sh31.5b.

William Nzoghu, Busongora North MP said he knew many youth doing business in Kasese but hardly any of them has received the funds. Nzoghu said the youth fund the conditions for getting the loans very difficult.

Finance Minister Maria Kiwanuka said in the budget the Graduate Venture Capital was set up with sh32b for graduate entrepreneurs contributed by both government and participating banks.

"A fundamental aspect of the youth fund is that it finances bankable project proposals presented by youth entrepreneurs and therefore must be appraised by banks. It allows entrepreneurs from the age of 18 to 35 years to participate," Kiwanuka told MPs.

Kiwanuka said the central region 1,225 youth had received the funds compared to the Southern region where 247 had received, Northern region 247, Eastern region 427 and Western region 745.