DEADLINE: 4TH DECEMBER 2019
Youth Enterprise Revolving Fund 2020 for Swaziland Youths – Download Application Form
The Ministry of Sports, Culture and Youth Affairs calls upon young people of Swaziland aged 18-35 to apply for business start-up funding from the Youth Fund between 04 November – 04 December 2019
Youth Enterprise Revolving Fund is established by the Swaziland Government aimed at contributing to the reduction of youth unemployment through the provision of business capital.
The YERF will be disbursing funds through an Intermediary Finance Institution and thus has developed a project funding value chain which clarifies the roles and responsibilities between YERF and the Intermediary. The roles and responsibilities can be summarized as follows:
Lending Terms and Conditions
Size of Loans
There shall be different lending limits for Individuals, companies and cooperatives. Deviation from these limits shall be at the discretion of the youth fund in consultation with the intermediary. The following maximum lending limits shall be observed:
- Individuals – E50,000.00
- Companies – E100,000.00
- Cooperatives – E150,000.00
Market Segmentation
There shall be different lending limits for Individuals, companies and cooperatives. Deviation from these limits shall be at the discretion of the youth fund in consultation with the intermediary. The following maximum lending limits shall be observed:
| Variables | Micro | Very small | Small | Medium |
|---|---|---|---|---|
| Turnover (E) | 2,500 | 60,000 | 150,000 | 600,000 |
| No. of Employees | 1 – 4 | 5 – 9 | 10 – 49 | 50 – 200 |
Term of Loans
While the fund does not have appetite for long term lending, it still remains a fact that development finance in its nature is more inclined to long term lending. There is therefore a need to balance need to maintain good liquidity as well as address the projects needs for its success. The term of loans shall therefore range between 12 – 36 months, subject to the size of the project as well as the nature of the project cycle. Loan repayments shall be scheduled in accordance to the production cycle of the businesses. The production cycle will differ from one business to another.
Deposit Contribution
It is enshrined in the mandate of Youth Enterprise Fund that the seed capital loans would be collateral free. The beneficiaries shall not be expected to contribute neither up front deposit nor collateral. This is aimed at maximising access to credit by youth entrepreneurs.
Coaching & Mentorship
Post funding, coaching and mentorship of the young entrepreneurs on an ongoing basis is one of the fundamental prerequisites to ensure performance and repayability of loans by the youth. The youth is often still immature and lacks experience in business management, therefore the fund will facilitate mentorship and coaching through local business development service providers.
DOWNLOAD LOAN APPLICATION FORM
For more Information: Visit the website for Youth Enterprise Revolving Fund 2020 for Swaziland Youths
