Minister of Finance Ericah Shafudah on Tuesday clarified the objectives of the National Youth Entrepreneurship Fund (NYEF), outlining its intended impact on youth empowerment, and contribution to national economic growth. Shafudah emphasised that the programme aligns with the sixth National Development Plan, under which the ministry has been tasked with the development of the NYEF and the mobilisation of resources amounting to N$500 million. 

“This capital is intended to empower the youth to initiate, sustain, and expand business ventures across multiple sectors of the economy,” Shafudah said. 

Speaking in the National Assembly, she said the NYEF is designed to establish a sustainable entrepreneurial environment consistent with the 2024 Cabinet-approved national policy on the informal economy, start-ups and entrepreneurship, the Swapo Party election manifesto, and national employment creation objectives. 

Shafudah stressed that reliance on a single channel has historically resulted in delays and restricted access to funding. Therefore, the Development Bank of Namibia, the Environmental Investment Fund, Agribank, and NamPost will serve as intermediaries for fund disbursement. “These institutions will operate under uniform lending terms and conditions consistent with the common guidelines, to provide more equitable and timely financial support to eligible youth enterprises,” Shafudah added. 

The income generated from the capital will allow for a cycle of reinvestments on a revolving basis, ensuring ongoing financial support for youth enterprises while attracting additional resources from external financiers. 

The minister said once the NYEF becomes operational, it is expected to facilitate the integration of marginalised communities into the formal economy and to alleviate poverty through increased youth income and improved living standards. 

This will drive sustainable economic growth through youth-led businesses that enhance productivity, innovation and GDP. – Nampa