Hertta-Maria Amutenja
Youth entrepreneurs can now access government loans through the newly approved National Youth Fund (NYF). The loans range from N$60,000 to N$200,000.
Cabinet last week endorsed the fund’s operational framework and allocated an initial N$257 million.
The ministry of information and communication technology said the NYF will use structured lending channels, including market linkage systems, targeted lending, public grants, and policy-based options.
The fund will follow a project-based entrepreneurship model, supporting businesses to grow beyond the start-up phase.
“The Cabinet approved the common guidelines for the operationalisation of the National Youth Fund, including a fund philosophy and lending structure to ensure viable projects receive support,” said MICT minister Emma Theofelus.
In April, finance minister Ericah Shafudah confirmed the government’s plan to create a youth development fund under the Swapo Party’s 2024 Manifesto Implementation Plan. She admitted that previous efforts did not deliver results.
“The SME schemes the government has put in place are many, but you don’t see their impact. Is it the theory of it that was not correct, or what is it?” she asked during a public engagement.
The NYF will consolidate current youth support schemes under bodies such as the National Youth Council, the National Youth Service, the Equipment Aid Scheme, and credit guarantee initiatives through local banks. These existing programmes have struggled to reduce the youth unemployment rate, which now stands at 44.5%.
Theofelus confirmed the fund will receive annual government subventions beyond the initial N$257 million but did not give specific dates for disbursement or implementation. It is also not yet clear which agency will manage the fund.
The NYF forms part of a broader plan to create over 52 000 jobs in five years. The government has set aside N$10 billion for youth-focused programmes under its N$85.7 billion implementation plan to cut unemployment and create 250 000 jobs.
Each year, the NYF is expected to receive N$500 million, fund apprenticeships for 10 000 youth, and support graduate internships in the public and private sectors. Interns will receive annual stipends of N$30 000.
