Zanzibar youth are faced with the lack of initial capital to support start up entrepreneurs. Because of lack of funding youth are often not interested to start their own business or fails at an initial stage of business. The commercial bank charge very high interest rates. Include data and statistics to highlight the problem statement. Make sure that data are properly sourced. Youth are unable to get loan as Banks are commercial and charging very high interest rates.
Zanzibar Technology and Business Incubator (ZTBI) together with Milele Zanzibar Foundation (MZFN) is planning to create “Joint revolving fund called MZFN-ZTBI Revolving Fund” to support startup entrepreneurs who are incubated at ZTBI. This fund is expected to strengthen their business. The joint ZTBI - MZF Guarantee Fund is for startup entrepreneurs dealing in three categories of Business; Agribusiness, ICT and Tourism.
Overall Objective: to support start up entrepreneurs with initial funding through MZF-ZTBI revolving funds. Through this project the following can be achieved:
- Increased access to funding opportunity for startup entrepreneurs
- Reduction of startup business failures due to lack of funding
- Increased sustainability of startup business
- Increased in number of formal enterprises
- Reduction of unemployment rate
- Decrease in poverty
- Increased in economic activity
Currently six groups have taken the loan and they are doing well and they have started repaying the loan, they are able to increase income, create job opportunities and increase production.