By KENNEDY MUPESENI –
A POLICY research consultant has urged Government to create partnerships with local financial institutions in administering youth funds rather than creating a bank.
Stakeholders have been calling on Government to establish a bank to efficiently administer youth funds and improve loan recovery rates.
However, Augustine Mkandawire observed that establishing a bank would be costly and would reduce on the number of beneficiaries.
“This will reduce the number of beneficiaries as most of the resources would be spent on establishing a bank and other operational costs,” Mr Mkandawire said.
He said the tendency of most countries in Africa of creating new institutions as ways of solving challenges was proving to be costly.
Mr Mkandawire said partnerships with the private sector would enable the Government efficiently manage the disbursement of youth funds.
The Government should continue attaching skills training to youth funds to realise intended objectives.
This year youth empowerment fund had increased to K29 million compared to last year’s K19 million.
