Africa-Press – Botswana. The Ministry of Youth and Gender Affairs (MYGA) in Botswana is taking decisive steps to address challenges in the repayment of Youth Development Fund (YDF) loans. Minister Lesego Chombo highlighted that repayment barriers have largely been structural, rather than due to unwillingness by youth borrowers. Many obstacles stem from limited youth offices, early closure of revenue points, and reliance on manual processes, all of which complicate loan repayment. These inefficiencies have contributed to YDF recording some of the lowest returns on investment for the government, highlighting the need for systemic reforms. The ministry’s initiatives aim to make repayment processes simpler, more accessible, and aligned with modern digital solutions.
Chombo emphasized that the youth are generally willing to honour their loan agreements but face difficulties navigating bureaucratic procedures. She pointed out that low repayment rates have often been unfairly attributed to a lack of commitment from young borrowers. In reality, structural constraints have created significant friction, preventing timely repayments and impacting the fund’s performance. The Ministry recognizes that without addressing these systemic issues, the YDF cannot achieve its objectives of empowering youth through access to financial resources. By identifying the root causes, MYGA seeks to create a fairer and more efficient system that supports both borrowers and the government.
To tackle these challenges, the ministry plans to introduce a digital repayment channel that allows youth to make payments conveniently online. This platform will be supported by decentralization of collection points, ensuring that young borrowers do not have to travel long distances to repay loans. In addition, automated tracking systems will monitor repayments in real time, reducing delays and errors associated with manual record-keeping. These reforms are designed to streamline operations, increase transparency, and improve overall compliance. By leveraging technology and decentralization, the ministry aims to remove barriers that have historically slowed repayment and undermined the fund’s impact.
The proposed changes are expected to improve the YDF’s return on investment while maintaining its social objectives. By easing repayment processes, the fund can operate more efficiently and continue supporting youth entrepreneurship and development initiatives. Chombo stressed that the reforms do not reflect a change in the expectations of borrowers but are instead an effort to remove unnecessary administrative obstacles. This approach ensures that youth can focus on productive use of funds rather than navigating complex repayment systems. The ministry’s strategy represents a proactive effort to align policy with practical realities faced by young entrepreneurs across the country.
Botswana’s Youth Ministry is actively reforming the Youth Development Fund to address structural repayment challenges and enhance its effectiveness. The introduction of digital channels, decentralized collection, and automated tracking will modernize the loan repayment process and improve compliance rates. By acknowledging that low repayment rates are not a reflection of youth unwillingness, the ministry reinforces a supportive approach to youth empowerment. These reforms are expected to strengthen the fund’s sustainability, boost its return on investment, and provide young entrepreneurs with the tools they need to succeed. The ministry’s focus on practical solutions demonstrates a commitment to enabling youth development while ensuring accountability and efficiency in public financial management.
