Inside the national youth loan scheme

The long-awaited National Youth Development Fund (NYDF) has officially made its first disbursements worth N$14.8 million, with agriculture and agro-processing accounting for more than a third of the approved projects that seek to create 315 jobs.According to official records, a total of 42 out of 11,475 youth-led business applications were successful during the pilot phase.Launched on Monday in Gobabis by Prime Minister Elijah Ngurare, the initiative is designed to tackle youth unemployment by financing small and medium enterprises in priority sectors.Agriculture dominatesA closer look at the disbursements shows agriculture and agro-processing dominate the portfolio, with piggery, poultry, horticulture and sustainable farming ventures accounting for more than a third of the approved projects. Other high-potential sectors include renewable energy, ICT, creative industries, tourism and waste management – signalling a push towards economic diversification.Notable allocations include Zee Media CC in Zambezi, which received N$1 million for a green technology project, and Opuwo Tannery & Leather Works in Kunene – collectively owned by 40 youths – which also secured N$1 million. Both highlight the fund’s willingness to back high-capital ventures and collective enterprises.Jobs: uneven but promisingThe first cohort of beneficiaries is expected to create over 315 jobs nationwide, though the distribution varies widely. Projects such as Expand Africa Charcoal Production in Otjozondjupa (20 jobs) and Apakaso Cotton Farming in Kavango West (20 jobs) promise significant employment opportunities. In contrast, smaller enterprises – including ICT repair centres and bakeries – will generate only a handful of positions.This uneven spread reflects the balance between supporting large-scale job drivers and nurturing smaller survivalist businesses that meet localised needs.Funding was spread relatively evenly across Namibia’s 14 regions. Kunene (N$2.2 million, 59 jobs) and Zambezi (N$1.7 million, 22 jobs) emerged as top recipients, while Khomas (N$1.2 million) and Erongo (N$1.26 million) secured sizeable allocations in technology, film production and logistics. The regional approach reflects government’s decentralised empowerment policy, stimulating rural economies alongside urban innovation hubs.Gender gaps persistDespite women’s active role in grassroots enterprises, male-led projects dominated both in number and value. Of the 42 approved initiatives, just over a quarter were female-led. Still, some of the most innovative ventures – such as Oasis Organics in Erongo (N$180,000, waste management) and Rebecca’s Crop Production in Otjozondjupa (N$90,000) – are women-driven, showing potential for inclusive growth if scaled further.Beneficiaries will undergo entrepreneurship training, with progress monitored through a youth-led framework to boost success rates.Blended financing modelThe NYDF partnered with Agribank, the Development Bank of Namibia (DBN) and the Environmental Investment Fund (EIF). Agribank is responsible for farming projects, EIF for renewable energy and green ventures, and DBN for services and manufacturing.This blended financing model not only spreads risk but also provides sector-specific oversight, increasing the likelihood of sustainability.Conditions and cautionThe youth fund will support start-ups, growth enterprises and expansion projects, with interest rates tailored to loan size: N$60,000–N$200,000 at 2%, N$200,000–N$1 million at 3%, and above N$1 million at 4%. A grant window for projects under N$60,000 will complement existing youth schemes. A grace period of up to 12 months will apply across categories, giving businesses time to grow before repayment.Ngurare urged implementing institutions to act as enablers rather than stumbling blocks to youth aspirations.“The success of this fund will depend not only on government, but on the collective will of our society,” he said, calling on the private sector to partner in expanding its reach.He also warned against misuse. “No one must abuse, misuse, or corruptly sabotage this fund. To do so would be a betrayal of our President, our manifesto, and our people,” Ngurare cautioned.

Inside the national youth loan scheme

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Namibian Sun 2025-10-01

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Inside the national youth loan scheme

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Namibian Sun 2025-10-01

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