PRESIDENT Emmerson Mnangagwa launched a new bank for young people on Thursday with government injecting $12.5 million.
The bank to operate under the name EmpowerBank will provide low interest business loans to young people between the ages of 18 and 35.
The bank is being launched in the background of a similar fund which was looted by the ZANU PF youth under former President Robert Mugabe’s Youth Development Fund which was introduced in the run up to the 2013 elections.
Launching the bank, Mnangagwa said that his government will not accept corruption and dishonesty as was done with the Youth Development Fund where millions of dollars were dispatched to ZANU PF youth and never paid back.
“. . . the youth and other beneficiaries of the bank packages must be honest, straightforward and responsible and pay back the loans advanced to them,” said President Mnangagwa.
The Empowerbank, which is capitalised to the tune of $12,5 million, is seen as yet another election campaign tool to hook the youth to vote for the ruling party.
Mnangagwa allayed fears that the bank is a campaign tool claiming that the bank is a futuristic financial institution.
Said President Mnangagwa: “I am thus optimistic that this institution will, in the long-term, birth the top entrepreneurs, millionaires and multi-millionaires of tomorrow.”
President Mnangagwa said the banking sector, and all other sectors, should harness the “immense potential” that resides in youths, as the country strives to achieve its vision of becoming a middle-income economy by 2030.
“To this end, my Government stands committed to ensure that its young citizens showcase and develop their talents, inherent creativity and innovation for sustainable economic development.
“It is envisaged that this financial institution will mitigate the limited access to credit finance, which for a long time has been an impediment to youth empowerment and emancipation,” said the President.
Added President Mnangagwa: “Let us re-inculcate a culture of savings and that of rewarding depositors through payment of interests as this will go a long way in rebuilding confidence and ultimately enhancing stability in the financial services sector.”
EmpowerBank board chairman Mr Raymond Njanike, said the bank will be a deposit taking micro-finance institution which will provide a number of services such as SME accounts, school fees loans and agri-business accounts, among others.
Two branches of the bank are expected to be opened in Harare and Bulawayo by September this year.
EmpowerBank becomes the sixth deposit taking micro-finance institution, including the Zimbabwe Women’s Microfinance Bank that was launched last week.
There are 175 non-deposit taking MFIs.