by Tawanda Musariri

The Reserve Bank of Zimbabwe has poured $12.5 million into the maiden youth Bank branded EmpowerBank. The bank opened its first branch in Eastlea, Harare today with President Emmerson Mnangagwa performing the first deposit transaction of a thousand dollars.

EmpowerBank is a Government driven bank which seeks to avail easy loans to the youths who currently are suffering a rebuff from traditional banks who require collateral security from lending banks, the collateral of which youths do not have.

In his launch speech, President Mnangagwa said Government was investing into the future through the youths with the vision of creating a middle income economy by 2030. He encouraged the youths, women and the previously marginalized and unbanked communities to approach the bank with project proposals seeking funding for investment. He exhorted established conglomerates and public institutions to bank with EmpowerBank as a means of seeding capital into the budding bank.

Speaking ahead of the President, Reserve Bank of Zimbabwe Governor Dr John Mangudya said EmpowerBank was the sixth deposit taking microfinance institution in Zimbabwe, which came on the heels of the Women’s Bank, also launched by the President a fortnight ago.

“The RBZ supports the National Financial Inclusion Strategy put in place in 2016 to embrace the youths who make up to 36% of the national population. Financial inclusion is a key instrument in achieving the UN’s 2030 Sustainable Development Goals,” said Dr Mangudya.

The Government has youth empowerment on top of its priority list of development agenda and is making active affirmative action towards the empowerment of this special interest group of citizens.

Both the President and the RBZ Governor implored the new bank to adhere to good corporate governance while encouraging the youths not to abscond their contractual obligation of paying back any advanced loans to them once they develop lending relations with the new bank.