In a move aimed at tackling Namibia’s high youth unemployment rate, estimated at 44.5%, the Development Bank of Namibia (DBN) will introduce a specialised youth loan facility in mid-August. The initiative, part of the N$257 million National Youth Fund approved by Cabinet, is designed to make financing more accessible for young entrepreneurs and professionals.
Unlike previous schemes that demanded stringent collateral, the new facility will allow financed assets to serve as security. DBN Interim CEO John Mbango described this shift as a “game changer,” saying it will remove one of the major obstacles that have discouraged youth from applying for loans in the past.
“The new guidelines are tailored to encourage participation by removing rigid collateral requirements and adjusting pricing to be more favourable,” Mbango explained. “We have outlined specific sectors eligible for funding while maintaining an exclusion list for activities outside the scope.”
Targeted sectors include agro-processing, hospitality, tourism, information and communications technology (ICT), creative industries, and professional services offered by specialists and vocational trainees. AgriBank will partner with DBN to cater to agricultural and farming-related ventures.
The facility is open to a wide range of youth-led enterprises, from start-ups to expanding businesses, with a particular focus on industries that can stimulate job creation and economic diversification. By easing financing conditions, DBN hopes to increase loan uptake and strengthen the contribution of young Namibians to the country’s economy.
