Bolster youth entrepreneurship with more funding - Mootu

Utaara Mootu of the Landless People’s Movement (LPM) has highlighted the pressing need for enhanced and transparent financial support for youth entrepreneurship in Namibia.Mootu was speaking during a parliamentary session on Wednesday, where she submitted a motion on the topic.Her motion underscored the critical role of small and medium enterprises (SMEs) in driving innovation, employment and economic growth, both globally and locally.“SMEs contribute 12% of our GDP and employ 20% of our workforce,” Mootu said, referencing deputy minister of youth Emma Kantema-Gaomas&#039;s analysis, which deemed these contributions modest compared to other sub-Saharan African nations.Mootu also emphasised the urgent necessity for transparent accountability in government commitments and performance in financially supporting youth entrepreneurship and start-up ecosystems.&#039;Immediate action&#039;Despite several initiatives and substantial budget allocations, support for young entrepreneurs and SMEs remains inadequate, Mootu argued.She criticised the inefficiency, corruption and lack of transparency that have plagued these efforts in her view.“This motion demands immediate action to rectify these shortcomings and proposes dynamic solutions for fostering a thriving entrepreneurial landscape for the youth of Namibia,” she said.The minister of finance’s 2022–2023 budget allocated N$72.2 million aimed at youth development through the Development Bank of Namibia (DBN) for mentorship and coaching programmes. Additionally, the Public Procurement Act of 2015 was expected to favour youth-owned enterprises in contracts valued at N$50 million or less.However, Mootu questioned the tangible economic benefits of these measures for young entrepreneurs.In 2023, the ministry of sport, youth and national services established 121 rural youth-owned enterprises, funding 28 with a total of N$8 million.An additional N$9.8 million was budgeted for the remaining 93 enterprises registered in 2023, but without clear plans for 2024’s anticipated registrations. “This strategy lacks the financial input to bolster youth entrepreneurship as a core tool for rural development,” Mootu noted.Recommendation To address these gaps, Mootu proposed a five-year financial plan, including the establishment of a Rural Entrepreneurship Fund (REF) to provide low-interest loans and grants. Collaboration with micro-finance institutions would extend financial services to rural areas.The Namibia Youth Credit Scheme, currently disbursing loans to 287 youths totaling N$2.3 million, was deemed insufficient due to inflated supply prices. Mootu also highlighted the need for quality control in charcoal farming and support for young farmers facing market gatekeeping and monopolies.The Development Bank of Namibia (DBN) was also brought under scrutiny for inefficient fund disbursement and allegations of favouritism and nepotism in loan approvals. “Efficient and transparent processes are crucial for fostering trust and ensuring that funds reach deserving young entrepreneurs,” Mootu emphasised.The call for improved youth entrepreneurship funding underscores the need for effective policies and transparent implementation to empower Namibia’s young entrepreneurs and drive sustainable economic growth.

Bolster youth entrepreneurship with more funding - Mootu

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Namibian Sun 2025-05-06

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Bolster youth entrepreneurship with more funding - Mootu

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Namibian Sun 2025-05-06

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