Namibia’s youth are set to receive a significant boost in their entrepreneurial endeavors with the official green light from Cabinet for the National Youth Fund (NYF). N$257 million initiative is poised to inject much-needed capital into youth-led start-ups and growing businesses, directly addressing the nation’s concerning 44.5% youth unemployment rate.
A New Era for Youth Entrepreneurship
The Cabinet’s recent approval of the Common Guidelines for the operationalisation of the National Youth Fund (NYF) marks a pivotal moment for young Namibian entrepreneurs. This decision follows an earlier announcement in April by Finance Minister Ericah Shafudah, who highlighted the fund as a direct response to the pressing issue of youth joblessness. The initial allocation of N$257 million will be supplemented by annual government contributions, underscoring a sustained commitment to fostering youth enterprise.
The NYF is built on a “project entrepreneurship model,” a strategic approach designed to nurture selected youth-led ventures, enabling them to expand operations and successfully compete in the market. This philosophy emphasizes supporting businesses to achieve self-sufficiency and market maturity.
Diverse Funding Mechanisms and Impact
To achieve its objectives, the fund will utilize a variety of channels, including:
Lending and market linkage conduits: Connecting businesses with essential financial resources and market opportunities.
Public lending facilities: Providing accessible loans to eligible ventures.
Grants: Offering non-repayable funds for specific projects.
Policy-based lending with segmented pricing: Tailoring loan terms to different business needs and stages.
Start-up initiatives can expect funding ranging from N$60,000 to N$200,000, with additional support mechanisms in place for businesses in their growth phase. The NYF is anticipated to be a transformative force, empowering young entrepreneurs by significantly improving their access to capital and fostering connections with broader markets.
In a show of early support for this vital initiative, the Namibia National Reinsurance Corporation (NamibRe) has already contributed N$5 million, becoming the fund’s first donor. This initial contribution sets a positive precedent for what is hoped to be a collaborative effort to empower Namibia’s youth.
