Cabinet approves N$257 million youth fund with no collateral
Speaking at the Commonwealth Youth Dialogue earlier this month, youth minister Sanet Steenkamp announced that Cabinet recently approved N$257 million for the National Youth Development Fund (NYDF). The allocation forms part of a N$500 million commitment for the 2025/26 financial year, aimed at tackling youth unemployment and promoting entrepreneurship in key sectors including agriculture, green initiatives and manufacturing.
Deputy minister Dino Ballotti confirmed that the fund is exclusively for people aged 18 to 35.
Speaking at International Youth Day on 12 August, Ballotti said, “Even I do not qualify for the fund,” underlining the strict age limit. He added that the most significant feature of the fund is that it does not require collateral, making it accessible to young entrepreneurs without substantial assets.
Categories
The NYDF offers loans in three categories: start-up initiatives between N$60 000 and N$200 000, entrepreneurial projects from over N$200 000 up to N$1 million, and larger ventures, mainly Small and Medium Enterprises exceeding N$1 million. Interest rates range from 2% to 4%, with repayment periods of up to five years and a 12-month grace period. Applicants are required to submit certified copies of their Namibian identity documents, business or cooperative registration certificates where applicable, business plans, proof of business address, bank account confirmation letters, bank statements, quotations for equipment or services, and, if relevant, environmental compliance certificates.
Job creation
The fund prioritises youth-driven, sustainable and scalable projects that align with national development priorities. Emphasis is placed on cooperative or collaborative entrepreneurial models, job creation and support for local supply chains.
The NYDF is designed to support Namibia’s broader economic policies, including the 2024 Cabinet-approved National Policy on the Informal Economy, Startups and Entrepreneurship, the Namibia Financial Sector Development Strategy 2025–2034, the National Integrated Financing Framework, and the Eighth National Development Plan. The fund will be implemented through the Development Bank of Namibia, Agribank, Environmental Investment Fund, and NamPost, with the first three institutions ready to disburse funds immediately and NamPost joining later.
Civil servants excluded
While there is no specific law or policy explicitly excluding civil servants from accessing loans through Namibia’s National Youth Fund (NYF), the fund's eligibility criteria prioritises unemployed or out-of-school youth aged 18 to 35. This focus aims to support economically disadvantaged young individuals who lack access to traditional financial services. Consequently, civil servants are generally ineligible for NYF loans, as the fund is designed to promote self-employment and economic participation among younger Namibians facing unemployment challenges.
Beneficiaries
A central goal of the NYDF is to empower marginalised groups, including young women, youth in rural areas, and youths with disabilities. Regional governors have been invited to coordinate and submit up to three bankable youth cooperative project proposals from their regions, highlighting youth empowerment potential, job creation capacity, local entrepreneurship support, and impact on local supply chains. By providing accessible financing, fostering entrepreneurial skills, and showcasing selected projects from all 14 regions, the fund seeks to build a sustainable youth entrepreneurial ecosystem and contribute to inclusive economic growth across Namibia.
Deputy minister Dino Ballotti confirmed that the fund is exclusively for people aged 18 to 35.
Speaking at International Youth Day on 12 August, Ballotti said, “Even I do not qualify for the fund,” underlining the strict age limit. He added that the most significant feature of the fund is that it does not require collateral, making it accessible to young entrepreneurs without substantial assets.
Categories
The NYDF offers loans in three categories: start-up initiatives between N$60 000 and N$200 000, entrepreneurial projects from over N$200 000 up to N$1 million, and larger ventures, mainly Small and Medium Enterprises exceeding N$1 million. Interest rates range from 2% to 4%, with repayment periods of up to five years and a 12-month grace period. Applicants are required to submit certified copies of their Namibian identity documents, business or cooperative registration certificates where applicable, business plans, proof of business address, bank account confirmation letters, bank statements, quotations for equipment or services, and, if relevant, environmental compliance certificates.
Job creation
The fund prioritises youth-driven, sustainable and scalable projects that align with national development priorities. Emphasis is placed on cooperative or collaborative entrepreneurial models, job creation and support for local supply chains.
The NYDF is designed to support Namibia’s broader economic policies, including the 2024 Cabinet-approved National Policy on the Informal Economy, Startups and Entrepreneurship, the Namibia Financial Sector Development Strategy 2025–2034, the National Integrated Financing Framework, and the Eighth National Development Plan. The fund will be implemented through the Development Bank of Namibia, Agribank, Environmental Investment Fund, and NamPost, with the first three institutions ready to disburse funds immediately and NamPost joining later.
Civil servants excluded
While there is no specific law or policy explicitly excluding civil servants from accessing loans through Namibia’s National Youth Fund (NYF), the fund's eligibility criteria prioritises unemployed or out-of-school youth aged 18 to 35. This focus aims to support economically disadvantaged young individuals who lack access to traditional financial services. Consequently, civil servants are generally ineligible for NYF loans, as the fund is designed to promote self-employment and economic participation among younger Namibians facing unemployment challenges.
Beneficiaries
A central goal of the NYDF is to empower marginalised groups, including young women, youth in rural areas, and youths with disabilities. Regional governors have been invited to coordinate and submit up to three bankable youth cooperative project proposals from their regions, highlighting youth empowerment potential, job creation capacity, local entrepreneurship support, and impact on local supply chains. By providing accessible financing, fostering entrepreneurial skills, and showcasing selected projects from all 14 regions, the fund seeks to build a sustainable youth entrepreneurial ecosystem and contribute to inclusive economic growth across Namibia.
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