BLANTYRE (Malawi NewsNow ) —Eye of The Child plans to launch a loan guarantee programme with some banks to benefit the youth under the institution’s service learning programme which empowers fresh graduates and secondary school leavers to become entrepreneurs.
Executive Director of Eye of the Child, Maxwell Matewere, says the launch of the facility is expected in November
Eye of the Child has partnered with some banks to finance a Youth Service Fund that will provide capital to youth with innovative business projects and beneficiaries will be provided with training “before they get the loans.”
Matewere says Youth Finance Fund entails identifying viable entrepreneurship ideas by the youth that will undergo the coaching and will be mentored before they receive guaranteed loans from the banks.
“We’ll deposit some money in the banks that will act as guarantee while the youth access the loans but there will be a process of capacity building that will make them qualify to receive the loans,” says Matewere.
About 200 youths are expected to benefit from this year’s coaching sessions in Lilongwe and Blantyre with some of them being assisted to be entrepreneurs while others will be absorbed into the labour market, according to Matewere.