The Cabinet approved N$257 million for the National Youth Fund (NYF) initiative, which seeks to support start-ups and small and medium-sized businesses led by young people. However, it is disheartening to learn that only 42 applications were accepted out of 13,700, even though the fund will be operational once the pilot phase is initiated. This stage is critical for instilling hope in young entrepreneurs rather than fear and worry, as we all know that first impressions count.
This initiative’s implementation is ineffective due to time constraints, and young entrepreneurs must submit comprehensive bankable business plans, realistic financial projections, and an environmental compliance certificate, all of which are extremely difficult to obtain due to time constraints, as well as potential young entrepreneurs who live in rural areas without internet access.
This expands the opportunities for young entrepreneurs in the town. The bureaucracy, based on the time the applications were opened to the final date, may force them to submit substandard documents, which is unfair to young entrepreneurs. The lack of rigorous quantitative analysis for fund models that should be built to help reduce youth unemployment and stimulate entrepreneurship, as well as an emphasis on less demanding approaches, despite the need for strong models. Instead of creating stress, this initiative has the potential to transform Namibia’s economy by addressing youth unemployment and closing gaps through targeted business support.
The Ministry of Finance spokesperson’s narratives failed to address the errors that caused uncertainty and discouragement among aspiring young entrepreneurs, instead delivering hope on how to improve their submitted financial projections and business plans, so that the next person knows what is required, rather than informing the public that the requirements must be met, which is critical, but what are the opportunities?
To be honest, the ministry might have told the public that it would only fund 42 young entrepreneurs rather than giving the impression that anyone could pitch a business. I am not pushing for the acceptance of unsustainable applications, but the Ministry of Finance should communicate because the fund lacks models, and the minister’s blueprint, which was presented in parliament, does not encompass econometric analysis. Informing a jobless person that if they applied during the pilot time but were unsuccessful, they should refresh their applications, prepare their application, and try again later, regardless of the reason for rejection, is an error of judgment. Given the ministry’s inability to respond with reasons, the ministry of Finance should investigate the root cause. Many young entrepreneurs may lack the skills and information necessary to develop a bankable business plan because their educational system did not adequately prepare them for entrepreneurship.
To effectively foster Namibian youth entrepreneurship under a leave no one behind framework, current policies must be de-bureaucratised by making it easy to access and comprehend the standards of our educational system. The government’s job is to help young entrepreneurs overcome the deficiencies that currently result in large policy gaps. Streamlining loan applications and developing supporting regulatory frameworks are critical areas to focus on to help young entrepreneurs overcome the challenges of working in an unduly bureaucratic environment. Help young entrepreneurs develop smart business plans that describe their target markets, strategy, and financial projections.
It is essential that the Ministry of Finance develop policies that reduce the unnecessary bureaucratic barriers that impede many young Namibians from realizing their entrepreneurial potential, ensuring that no one lags in Namibia’s economic growth. By spotlighting Namibian youth entrepreneurs as a high-potential economic enabler brings key stakeholders together to create new channels and solve structural difficulties confronting young entrepreneurs. It is disappointing to see that just 42 applications were approved, which undermines the purpose of the NYF, which was created in response to the high rate of unemployment.
Furthermore, it would be more relevant if youth involvement in setting up the NYF were used to identify their pain points rather than creating a committee to initiate the NYF development process. I agree that those involved in the NYF formulation are not experts in youth unemployment, yet the Ministry of Finance made no real effort to solicit youth feedback on the issue. Given that no one knows and understands the technical abilities of young entrepreneurs better than themselves, it would have been reasonable to include them in the initiative creation process.
As we move toward Vision 2030, no one should feel left out by the NYF initiative. The aspirations and expectations of all young entrepreneurs from all sectors are to establish a solid economic foundation and the main pillars of the initiatives. As a result, the Minister of Finance should have communicated more effectively to instill hope as this effort progresses, as well as the youth entrepreneurs’ national structures, which should be equipped to provide technical assistance as well as monitor and assess the NYF’s progress for sustainability. It is also the obligation of young entrepreneurs to understand that the path to finance necessitates strategic preparation, appealing proposals, and effective financial management.
Going forward, government policy should promote young entrepreneurs who have seized this opportunity to persevere and be creative in navigating the cracks. Entrepreneurship is critical to Namibia’s economic growth and development since small and medium-sized enterprises (SMEs) are the country’s primary economic engines. Entrepreneurship stimulates innovation, provides jobs, and promotes income distribution. With a diverse market and abundant resources, entrepreneurship is critical to reducing unemployment, establishing local businesses, and, eventually, contributing to the country’s economic stability and prosperity.
To that end, the government should debureaucratise the National Youth Entrepreneurship Fund (Nyef) application process by enacting policies that make it easier for young people to apply.
As Namibia’s youth population grows, it becomes increasingly necessary to invest in their potential to ensure the country’s long-term viability. By implementing creative funding structures and fostering stakeholder engagement, we can create a culture in which young people can thrive and ultimately transform our country into a hub of innovation, leadership, and economic resilience.
Supporting young people is more than just an investment in individuals; it is a commitment to creating a brighter, more prosperous future for everyone in our country.
-Josef Kefas sheehama is an independent economic and business researcher. He writes in his own capacity.