THE Citizens’ Economic Empowerment Commission (CEEC) has this year so far received 16,521 applications for loans.
And the CEEC has partnered with six financial institutions in the disbursement of loans to successful applicants.
CEEC head of communication and public relations Glenda Masebe said at the Zambia International Trade Fair (ZITF) yesterday that there has been a tremendous increase in loan applications.
“For 2014, we received an overwhelming response in terms of applications. We received 16,521 which translated into an increase of 102 percent. It was more than double what we received in 2013,” Ms Masebe said.
CEEC received 8,172 applications in 2013.
Ms Masebe said CEEC has set out guiding principles and that 90 percent of the funds will be accessed by people in rural areas.
She said CEEC made this decision after realising that 60 percent of the successful applicants who benefitted from the funds last year were from Lusaka and the Copperbelt provinces.
Ms Masebe said for the value chain cluster development, 90 percent of the funds will be channelled to rural areas and of these, 70 percent will go to the youth and women.
“Women have a chunk of 30 percent and if you realise, our population is made up of 40 percent of youths. It just makes business sense that we give 40 percent to the youths,” Ms Masebe said.
The physically challenged have been allocated 20 percent of the funds.
Ms Masebe said CEEC will attach business mentors to approved loans in line with the guilding principles.
She said previously, some applicants diverted funds.
“You would note that if you deposit money into someone’s account, they would divert it to other things other than business. So to curb that, we will be attaching a business mentor who will be sitting on their board when making financial decisions,” she said.
Ms Masebe said CEEC is meant for starting-up businesses and not already established businesses.
She said CEEC is targeting 30 districts this year and it expects to reach out to all districts in five years.
Ms Masebe said CEEC disbursed K206 million in various loans between 2008 and 2010. Last year, K40 million was given out.