A SHOT IN THE ARM FOR WOMEN, YOUTH AND SMEs: 2020 BUDGET

By Admire Machiwenyika
The Minister of Finance and Economic Development yesterday presented a ZWL$63,6 billion budget with several initiatives that are set to help women, youth and medium, small scale enterprises.
The programmes include National Venture Capital Fund, Employment Intensive Investments and Youth Employment Tax Incentive (YETI).
The youth are the most productive age group and are making an important contribution to economics as productive workers, entrepreneurs, consumers, citizens, members of the society and agents of change.
On the other hand, the full potential of young people is not realised owing to lack of access to productive and decent jobs.
The finance minister during his 2020 Budget introduced the Youth Tax Incentive (YETI) and the incentive is being introduced to support employers who generate jobs for young job seekers.
“Any additional job created will attract a percentage tax rebate to the employer, linked to the employee’s salary. This measure will reduce the employers cost of hiring young people through a cost-sharing mechanism with the Government.
“To operationalise YETI, the Ministry of Finance and Economic Development will work closely with ZIMRA, Ministry of Justice, Ministry of Labour, EMCOZ and other relevant organisations to work out the respective legal and administrative framework,” said Ncube.
To increase economic opportunities and participation by Zimbabwean youths in national development, the government will unveil a ZWL$500 million for the National Venture Capital Fund.
The Fund will be capitalised in both local and foreign currency, to incorporate the financing of start-up projects of our youth with preference being given to targeted areas in the context of the Local Content Strategy.
“The Fund will provide affordable loans to young entrepreneurs including those engaged in production, that way encouraging them to be job creators and not job seekers.
“This marks the Launch of the ‘Presidential Youth Entrepreneurship Programme’ to drive entrepreneurship among the Youth,” explained Ncube.
Minister Ncube also added that the government is committed to continuing to play its role in capitalizing various institutions that support women, youth and medium and small scale enterprises (MSMEs).
The institutions will receive the following funding Women Development Fund, ZWL$20 million, Community Development Fund, ZWL$15 million, Zimbabwe Women Microfinance Bank, ZWL$100 million, SMEDCO, ZWL$90 million and Empowerbank, ZWL$50 million.
Specific allocations in support of projects and programmes aimed at empowering women, including the completion of the refurbishment of training centres.