Youth fund gets N$317m boost, but only N$90.8m disbursed

The National Youth Development Fund (NYDF) has attracted 13 809 applications from young Namibians, but only about N$90.8 million of the financing approved so far has actually been disbursed, the ministry of finance says.

In a progress update issued on Tuesday, it said participating development finance institutions had received the applications since the fund was established, pointing to what it described as significant demand for affordable financing among young entrepreneurs.

The Development Bank of Namibia (DBN) accounted for about 11 000 of the applications. Of these, approximately 5 000 had been processed, with financing worth about N$67 million approved and roughly N$40 million disbursed to beneficiaries.

Agribank received 1 611 applications, of which 66 were approved for approximately N$23 million. About N$11.8 million had been disbursed.

The Environmental Investment Fund received approximately 1 198 applications, with 99 applications approved for about N$45 million. Of this amount, approximately N$39 million had been disbursed.

Overall, the ministry said approximately N$135 million in financing had been approved across the participating institutions, while about N$90.8 million had reached beneficiaries.

The government has invested N$317 million in the programme to date. For the 2025/26 financial year, N$258 million was appropriated to the NYDF, comprising N$129 million for project financing, N$90 million for establishing an endowment fund managed by the Bank of Namibia and N$39 million for training, coaching and mentoring.

Removing obstacles

A further N$50 million was allocated in the 2026/27 financial year, while NamPort and Namibian Investment Bank each contributed N$5 million.

The fund forms part of government's broader development agenda under the Sixth National Development Plan, with the stated objectives of accelerating economic growth, creating employment and increasing young people's participation in the economy.

Unlike conventional lending, NYDF financing is provided without conventional collateral requirements, with government acknowledging that lack of collateral remains a major obstacle for young entrepreneurs seeking finance.

However, the ministry acknowledged a significant gap between the number of applications received and those ultimately approved.

It said the large application numbers demonstrated both the entrepreneurial ambitions of young Namibians and demand for affordable development finance, while the ministry and participating institutions were working to improve the conversion of applications into viable, bankable and sustainable businesses.

Building sustainable businesses

Government has also conducted about 33 outreach sessions nationwide, alongside roadshows and participation in exhibitions, expos and trade fairs by the participating institutions.

The ministry said NYDF information was being disseminated through radio, digital platforms and social media, with advertisements translated into local languages to broaden access to information.

It stressed that support does not end once funding is approved, with beneficiaries receiving continued mentoring, coaching and guidance aimed at helping them establish and manage sustainable enterprises.

The current approved portfolio is projected to support about 2 500 employment opportunities across sectors including agriculture, manufacturing, services, construction, green energy and tourism.

The ministry said the success of the NYDF should ultimately not be measured simply by the amount of money allocated or disbursed but by sustainable businesses created, jobs generated, the geographical spread of opportunities and the ability of young Namibians to become economically active and self-sustaining.

It said the NYDF remained in the early stages of implementation and that the challenges encountered, particularly in converting applications into bankable and sustainable projects, were informing improvements to the programme.