Govt repackaging youth fund

The Government has not forgotten the enterprising youth who were recently allocated sh32b under the Youth Venture Capital Fund that is in this year’s budget.

Youth state minister Ronald Kibuule said the Youth Venture Capital Fund is instead being transformed into a different scheme intended to benefit both the rich and poor youth.

The Fund received little mention in this year’s budget speech.

Kibuule told New Vision online exclusively that the new scheme would be tabled before Cabinet at the beginning of next financial year.

“The youth will access the fund through the Ministry of Gender, unlike in the past when it was under the finance ministry,” he said. “Bank of Uganda will be in charge of disbursing the funds,” he added. Kibuule explained that this time around, the Government wants to be in full control, unlike under the current scheme, where commercial banks are in charge of the Fund.

“Commercial banks charged high interest rates. Getting them involved in this project added little value,” he said.

Kibuule also explained that the Government wants to handle the new youth fund scheme in the same way it has managed the Northern Uganda Social Action Fund (NUSAF).

“We want every youth, who is involved in an economic activity, to access the money. Beneficiaries will not be asked for collateral security before accessing the money. Even the youth in hard-to-reach areas, where there are no banks, should be able to access the funds,” he said.

While reading next financial year’s budget, finance minister Maria Kiwanuka did not mention much about the Youth Venture Capital Fund, which left many youth pondering about their future.

Western Youth MP Gerald Karuhanga expressed dismay about the silence on the youth fund and threatened to mobilise the youth to keep away from the International Youth Day celebrations due in August.

In her budget speech, Kiwanuka only said over 5,200 small businesses had been supported with sh21b, which was disbursed to eligible youth by the end of May.

Meanwhile, northern Youth MP Evelyn Anite said the youth would continue drawing loans from commercial banks under the old scheme.

She said the Government was contemplating adding another sh32b, which was not utilised in the 2012/2013 budget.