By Martin Endjala
Copyright namibian
Prime minister Elijah Ngurare has announced that the National Youth Development Fund (NYDF) carries no collateral requirements.
He was speaking during the fund’s official launch at Gobabis on Monday.
The highly anticipated fund is aimed at addressing market access gaps.
Ngurare said a grace period of up to 12 months will allow businesses to grow before repayment begins.
“There are no collateral requirements. Let this be clear. The criteria is that the youth fund must be clear and must be youth friendly.
“If and when we find that the criteria are not helpful, let’s change them for the benefit of the Namibian youth,” he said.
Ngurare attributed challenges faced by youth entrepreneurs to lack of finance, inadequate skills and limited access to markets.
He said the need for funding is among the top four challenges along with start-up skills, technology absorption and processinnovation.
When applications opened during the pilot phase between 1 August and 4 September, 11 475 applications were received from all 14 regions.
Ngurare said 6 111 projects were assessed by the Development Bank of Namibia (DBN), 5 070 agricultural applications by the Agricultural Bank of Namibia (Agribank), and 294 eco-friendly projects by the Environmental Investment Fund.
Ngurare explained that start-ups may access between N$60 000 and N$200 000 at a 2% interest rate.
Growth-phase enterprises are set between N$200 000 and N$1 million at 3% interest and an expansion enterprise above N$1 million at 4% interest.
“It is this challenge that has compelled us to act, to innovate decisively and toestablish this NYDF.
“Therefore, we are here today because we believe in nurturing the aspirationsand ambitions of our youth, for a brighter, inclusive future,” he said.
Ngurare said a grant window under N$60 000 will complement existing government schemes, such as the credit for youth in business under the Ministry ofEducation, Innovation, Youth, Sport, Arts and Culture, and the income generating activities scheme under the Ministry of Gender and Child Welfare.
The fund will also be sustained through an endowment mechanism under the Bank of Namibia, which will reinvest interest income to secure opportunities for future generations.
The fund was launched under the theme ‘Awakening The Namibian Youth Entrepreneurial Aspiration.’
Ngurare revealed that the fund has a capital of N$500 million, with N$257 million already allocated for the 2025/26 financial year.
“It will address the gaps that have held back youth entrepreneurship. And this is not a handout, it is a hand up. You, the youth of Namibia have to become builders of businesses, creators of jobs and drivers of innovation,” he said.
The fund will be implemented through development finance institutions such as the DBN, Agribank and the Environmental Investment Fund, with NamPost set to join soon.
