Old Mutual Statement on Kurera-Ukondla Youth Fund Progress

15 Feb 2011
The Kurera–Ukondla Youth Fund was established on 16 November 2011 as part of Old Mutual’s indigenization agreement with the Zimbabwean Government. An amount of 2.5% of the transaction, worth US$10 million, was allocated to the Youth of Zimbabwe, in an effort to improve levels of unemployment and act as a stimulus to economic growth in the country.

In addition to the US$10 million allocation, a further investment of $1 million will be made available by the Old Mutual Foundation in Zimbabwe, to be applied towards capacity building and skills development.

CABS and Old Mutual together with the Ministry of Youth Development, Indigenization and Empowerment, are pleased to announce that the process of projects assessment and fund disbursement is under way in earnest across Zimbabwe. Several projects have been approved and funding released to the recipients to date.

As at 13 February 2012, 10 000 application forms have been distributed across the country through CABS branches and Ministry of Youth Development, Indigenization and Empowerment offices. Of the 2 816 completed applications received so far, 69 have been approved to the value of US$248 275 with hundreds of applications in the final stage of vetting and approval. This process is being approached not only with speed but also caution and prudence in order to widen the catchment areas to all corners of Zimbabwe.

The majority of approved loans are split across the economic sectors of agriculture (23%), distribution (30%) and manufacturing (36%) sectors, with a minority in the service (7%), retail (1%) and horticulture (1%) sectors.

Whilst the overwhelming initial response to the Youth Fund at inception resulted in some administrative backlog, this has since been addressed and the pace at which applications are being processed and funds disbursed is steadily increasing.

We remain committed to the successful implementation of Kurera-Ukondla, ensuring fair distribution of these funds to deserving projects that not only benefit the nation but the local communities in which qualifying youths are based. The parties to the Fund, Old Mutual, CABS and The Ministry of Youth Development, Indigenization and Empowerment confirm that the priority remains the sustainable socio-economic development of Zimbabwe and its people and will continue to play an active role in the recovery of the economy.”

Luke Ngwerume, Group Chief Executive, Old Mutual Zimbabwe