28 PAKASA The , Friday, April 6, 2012

BY JOHN SEMAKULA different stakeholders, government has removed challenged by the youth and their leaders be- tasked the Finance Ministry to explain why some of the tough conditions, making it easier cause it excluded a certain section of age where the Youth Venture Fund had been tagged with It’s now official: youth who have been shunning for the youth to access loans. many youth fall, according to the constitution of stringent conditions which were hindering the the Government venture capital fund because of Among the conditions which have been . Finance minister, Maria Kiwanuka, says beneficiaries from accessing the loans. the tough conditions for accessing loans, should scrapped is the education requirement. Govern- that the conditions were softened or scrapped to In this financial year, government partnered not worry anymore. This financial year, govern- ment previously required youths who were in make the loans more accessible to a larger por- with Stanbic, DFCU and to ment earmarked sh44.5b for the Youth Venture need of loans to possess a senior four leavers tion of the youth. lend out sh25b to the youth under the fund to Fund. certificate. Kiwanuka also noted that government was in support the growth of viable and sustainable Under the fund youth (21-35 years of age) But with the changes, youth are free to apply consultation with the banks handling the loans small and medium enterprises in the private were free to borrow between sh100,000 to sh5m for the loans without being asked to present their to consider giving out loans of up to sh10m to sector. Eligible sectors include manufacturing, to expand their existing business. But many academic papers. a group of at least two people. The previous agro-processing, primary agriculture, fisheries, youths complained that the conditions that the The age bracket for accessing the loans has arrangement recommended five people for such livestock, health, transport, education, ICT, youth had to fulfil were making it hard for them also been revised from 21 to 35 years to between a loan. tourism, construction, printing and service to access the the money. After consulting with 18 to 35 years. The first age requirement was Before the changes were made, Parliament contractors. Can Youth Capital Venture Fund make entreprenuers of our youth?

David Katumwa, Katumwa Sports Centre Hajj Nasser Ntege Sebaggala, former Mayor What you The money is enough for the youth. They don’t Business has nothing to do with the initial have to start big. None of us started big. We capital. There are so many people who en- need to have just grown to where we are. One thing tered business through selling pancakes and the youth need to know is that success is not are successful business people today. Such determined by the capital you have but by people started with less than sh10,000. But get money courage and confidence. The capital which you there are those who started business with lEligible borrowers shall have is like education. You don’t have to be too millions of shillings and have nothing to be expected to comply with educated to succeed in business. My capital was show for it today. There are even those who their local business licensing sh100,000 but it has taken me this far. Some inherit property worth millions of shillings requirements. other people started business with millions of and lose it all after a short time. I started sh2 lEligible enterprises must shillings and failed to manage them. Sh600,000 and I was selling tomatoes but I am now a have been in operation for is enough for someone to start a shoe business prominent businessman. What government a minimum period of three in St. Balikudembe. Then as your business is giving the youth is seed money and any- months. grows you get experience, exposure and build a body who has knowledge and determination lEach business project customer base. can successfully use it. should be able to provide employment to at least four people by the end of the loan period. l Each borrower shall Maggie Kigozi, Prominent Salim Uhuru, a prominent present at least two guaran- entrepreneur city businessman tors who must be persons of good repute within the local The youth need to have the capacity to start and manage the businesses. The money is too little and community. lIf approved, eligible benefi- They should be helped to acquire cannot do anything much the skills and the capacity. If some- for the youth. In Kampala ciaries should be willing to receive advice and be ready one has the capacity and is willing the youth are supposed to to start small, that money is enough. get it in groups of five so it to participate in financial skills training and mentoring Money is not the most important is too little to run any tan- factor in starting a business. It is just gible business in the city. for proper business manage- ment. additional. The youth shouldn’t also consider driving immediately after Individual requirements starting the business. lProof of age lProof of nationality and residence e.g. passport, birth certificate, voters’ card, util- ity bill or parents’ bill, Local Council letter or tenancy Johnson Muyanja Senyonga, agreement. politician and businessman lCRB card. Required of only Mamerito Mugerwa, Mayor Kira Town successful applicants. This is That money was only enough dur- Council and prominent businessman available at all bank branches ing our days when there was no at a once-only payment of competition in business. I started The money is enough. The only chal- sh50,000. a small business in Kibuye lenge is that it is not easily accessible. l Any other requirements with sh100,000 and the turnover But if it were easy to access and the under the relevant laws of was very big from the beginning beneficiaries knew that it is a loan Uganda which can’t happen today. If you for starting business, the youth could have a retail shop with very little achieve much with it. Most of the Companies/Partnerships merchandise, you may not get successful business women in Uganda lCertificate of registration, customers. People will go to the started with less than sh100,000. Some incorporation or partnership supermarkets. But on the other of us started without capital and see deed hand if the youth are guided by where we are. I have a group of youth I lCertified Memorandum their parents and elders on how helped to start a water business in Kira. and Articles of Association to use the loans, the money may I connected them to the owner of a lCRB Card at a once- yield results. Such arrangement to water tap. They fetched water and sold only payment of sh60,000. seek guidance from the parents and it to residents and in the evening they Required of only successful elders is, however, not part of the cleared their bills. Today, all of them applicants. Available at all guidelines for accessing the loans. have personal cars doing special hire bank branches. The youth are instead relying on businesses in the town. Their families lAny other requirements paperwork from the banks. are now living happily. under the relevant laws of Uganda.