By Mbono Mdluli
MBABANE – The Youth Enterprise Revolving Fund (YERF) has successfully recovered E1,432,156 in loan repayments from 59 beneficiaries, reflecting improved accountability among young entrepreneurs.
According to a statement from YERF, the recovered funds include repayments from beneficiaries in both the pre-2016 and post-2016 lending periods. The post-2016 phase marked a strategic shift in YERF’s approach to fund recovery, following earlier challenges with defaulting beneficiaries.
“To date, YERF boasts 25 beneficiaries from the post-2016 lending period who have fully repaid loans amounting to E960,356, while 34 beneficiaries from the pre-2016 cohort repaid a total of E471,800,” stated the Fund. This achievement highlights the effectiveness of YERF’s strategies in promoting financial literacy and compliance.
To recognize these efforts, YERF will host a special event on Thursday, December 19, 2024, at Alcon Business Centre in Manzini starting at 10:00 AM. The event will celebrate the achievements of beneficiaries who have fully repaid their loans and inspire others to follow suit.
Despite these successes, YERF revealed that 56 beneficiaries with overdue loans totalling E3 million are currently facing legal action. Efforts to recover these funds have seen limited success, with no assets repossessed or sold at auction. To resolve this, YERF has introduced an asset voluntary surrender option to help defaulters avoid legal consequences.
Moreover, 153 beneficiaries, with outstanding balances of E7 million, have been blacklisted and reported to credit bureaus as of November 2024. Alarmingly, only 2 beneficiaries have settled their loans, totaling E118,933, and have been removed from the blacklist.
YERF attributed the low repayment rates to the following factors:
Lack of Business Acumen – Limited understanding of business operations.
Poor Financial Management – Inadequate financial planning and oversight.
Limited Financial Literacy – A lack of financial education among beneficiaries.
Stiff Competition and High Costs – Rising operational costs and supply chain disruptions.
Economic Disruptions – The impact of COVID-19 and the 2021 social unrest, which affected over 70% of non-performing loans.
To address these challenges, YERF will introduce special recovery loans to support struggling businesses. In addition, a Mindset Change and Growth Program will be launched in partnership with various organizations.
As part of this initiative, beneficiaries will undergo a mandatory pre-entrepreneurship mindset course to develop critical skills and foster a culture of accountability.
YERF is also advocating for the integration of entrepreneurship training into educational curricula by partnering with institutions like ECOT, Limkokwing, Sebenta, and private colleges such as BSA Training College.
