IMBITA TO RECOVER E6.9M YERF LOANS

 MBABANE – The Youth Enterprise Revolving Fund (YERF) has entered into a three-year contract with Imbita Women Finance Trust for the collection of outstanding loans valued at E6.9 million.

Chief Executive Officer (CEO) Bhekizwe Maziya said as a small organisation that still relied 100 per cent on government funding, partnerships were the only answer during such current financial challenges facing government.
Maziya said as they engaged other stakeholders in the quest to mobilise resources, one issue that had always popped up was previously disbursed loans which were still sitting at the hand of the beneficiaries.
“This history has been haunting us ever since our resuscitation. To date a total amount of E6.9 million is still outstanding from the E10 million loans that were disbursed to a total of about 680 beneficiaries,” said Maziya.

He said Imbita would be paid 30 per cent of all recovered monies. The CEO said ever since they resumed lending again early this year, a few individuals had showed up and were making repayments though the repayment rate was still very low.

“It was for that reason that the board of directors found it prudent to engage a partner to conduct the debt recovery services on behalf of the fund. After engaging with other service providers, Imbita Women Finance Trust was identified as the best partner,” said Maziya.

Considered

He said litigation would only be considered as a last resort to beneficiaries who would not cooperate in the process.
“The fund would not be a revolving fund if the disbursed funds would not be repaid and loaned to subsequent beneficiaries,” added Maziya.
It was also disclosed that the fund had so far disbursed loans to a total of 43 beneficiaries amounting to E2.4 million. Maziya said the second batch had also been finalised and now awaits board approval.

The CEO said the third cycle was also under process together with the MTN-YERF Khula Natsi loan scheme. The process is getting faster as we improve our efficiencies.

Imbita’s Sibongile Shongwe said they were glad to have partnered with the fund. She promised that they would do everything within their powers to ensure that all outstanding monies got recovered successfully.
“Since we were involved in the granting of the loans, we are confident that we will be able to efficiently handle the task at hand,” said Shongwe.

Principal Secretary in the Ministry of Sports, Culture and Youth Affairs Prince Mlayeto said YERF appointed Imbita as debt collectors because they were confident that they would be able to diligently recover the owed loans.

He explained that the essence of a revolving fund was to recover the monies which got lent out in order to be able to lend to more emaSwati.
“We hope Imbita will be able to recover the much needed finances in order to grow the fund,” added the prince.    

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