Auleria Wakudumo
The National Youth Development Fund (NYDF) has disbursed approximately N$90.8 million to beneficiaries to support youth entrepreneurship.
Approved projects are expected to create about 2 500 employment opportunities as the government intensifies efforts to promote sustainable economic growth among sustainable economic growth among the youth.
The Ministry of Finance, in the NYDF progress update, said the fund had received approximately 13 809 applications through participating development finance institutions (DFIs) by August, reflecting strong demand for affordable financing among young Namibians.
About N$135 million in financing had been approved across the institutions, while the N$90.8 million already disbursed represents money that has reached beneficiaries.
The Fund’s progress comes as government seeks to accelerate economic growth, expand employment opportunities and increase young people’s participation in the economy under the Sixth National Development Plan (NDP6).
N$317m invested
The government allocated N$258 million to the Fund for the 2025/26 financial year. Of this amount, N$129 million was earmarked for project financing, N$90 million for an endowment fund managed by the Bank of Namibia and N$39 million for training, coaching and mentoring.
A further N$50 million was allocated in the 2026/27 financial year. NamPort and NamibRe also contributed N$5 million each, bringing the Fund’s overall investment to N$317 million.
The finance ministry said the fund was designed not only to provide financing but also to support the establishment of productive and sustainable youth-owned enterprises.
Its collateral-free approach is intended to address one of the major barriers facing young entrepreneurs who lack assets to secure conventional loans.
2 500 jobs
The approved project portfolio across participating DFIs is projected to support 2 500 employment opportunities.
The projects span agriculture, manufacturing, services, construction, green energy and tourism, demonstrating the potential of youth-owned enterprises to contribute to economic activity across different sectors.
The ministry said the success of the fund would ultimately be measured by the number of sustainable businesses established, jobs generated, geographical spread of opportunities and the ability of young Namibians to become economically active and self-sustaining.
The projected employment opportunities are an indication of the potential impact of the approved projects.
Thousands of applications
The Development Bank of Namibia (DBN), Agribank and the Environmental Investment Fund (EIF) are among the institutions implementing the programme.
DBN received approximately 11 000 applications, of which about 5 000 had been processed. Financing valued at approximately N$67 million had been approved, with about N$40 million disbursed to beneficiaries.
Meanwhile, Agribank received 1 611 applications, with 66 applications approved to the value of approximately N$23 million. About N$11.8 million had been disbursed. The EIF received approximately 1 198 applications. It approved 99 applications valued at approximately N$45 million, of which about N$39 million had been disbursed.
The ministry said the large number of applications demonstrated the entrepreneurial aspirations of young Namibians and the significant demand for affordable development finance.
Young entrepreneurs
The NYDF was officially launched by Prime Minister Elijah Ngurare last year in Gobabis.
The ministry’s official information on the fund provided financial and technical support to Namibian youth aged between 18 and 45 to establish, grow or expand businesses.
Loans carry interest rates ranging from 2% to 4%, depending on the funding category, with repayment periods of up to five years. The Fund does not require conventional collateral.
Its priority areas include agriculture and agro-processing, green and environmentally friendly projects, and manufacturing and value addition.
Other viable ventures can also qualify, including businesses in creative industries, tourism, technology and services. The programme also aims to promote inclusive growth, particularly among young women, rural youth and young people with disabilities.
Apart from financing, the fund provides business support intended to help beneficiaries establish and manage sustainable enterprises.
Outreach
The ministry and participating DFIs have conducted approximately 33 outreach sessions, reaching thousands of participants nationwide.
These activities have been complemented by DFI roadshows and participation in exhibitions, expos and trade fairs.
Information about the Fund is also disseminated through radio, digital platforms and social media, with advertisements translated into various local languages to broaden access.
The ministry has established a dedicated NYDF Project office to coordinate, support and monitor implementation. Participating DFIs have also committed additional resources, including dedicated NYDF desks.
Bankable businesses
The ministry acknowledged that converting the substantial number of applications into bankable and sustainable projects remained a challenge.
Although thousands of young people have applied, the gap between applications received and those approved highlights the need to strengthen support for applicants and improve the quality and viability of business proposals.
The ministry said experiences from the fund’s early implementation stages were informing improvements to the programme.
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