Youth Fund Bill Goes to MPs

The Council of Ministers has forwarded a bill for the youth revolving fund to the parliament. The Council, in its 21st meeting, discussed the 10 billion Br revolving fund proclamation.  The bill is said to encourage saving and job creation. It was also underscored that the bill will help develop a stable financial system as far as the revolving fund is concerned.
This comes two weeks after the launch of the Ethiopian Youth Development Strategy and the package under it. The document targets unemployed youth between the ages of 15 and 29. Out of the total population of Ethiopia, 71pc are believed to be under the age of 30. Last year, 22pc of youth were unemployed.
The money will be accessible to beneficiaries through loans. It will ease the burden on youths because they will be expected to save only 10pc of the amount they are asking for. Moreover, interest rates on loans from the revolving fund will be around half the average rate of bank loans. Applicants who are unable to provide collateral will have the chance to be part of a lease financing program.
Out of the total 10 billion Br, half of it is expected to be allocated in the next six months.