Lahja Nashuuta
A parliamentary committee has uncovered potential mismanagement of funds meant to finance youth business initiatives across the country’s 121 constituencies.
Nantu-Likwafela, the company appointed to run the government’s 121 constituency youth enterprises initiative, has denied claims that it withheld funds or delayed payments meant to drive youth entrepreneurship. The initiative is aimed at helping young people start businesses in all 121 constituencies across Namibia, with over N$9 million allocated to the project.
Of this, N$1 million was set aside for training, while N$8 million was for soft loans. However, a recent parliamentary report has lifted the lid on serious problems, including mismanagement, delays and lack of proper support.
Only 28 youth-owned businesses have received funding so far.
Most of them reported receiving less than they were promised, often too little to run their operations. Others said payments came too late or were made directly to suppliers with no proper follow-up.
A report by the National Council Standing Committee on Education, Science, ICT and Youth Development, based on visits to six regions in September 2024.
Therein, it raised red flags.
It said 99% of the funded businesses are in danger of collapsing due to poor management, late disbursements, and missing financial records. The report called for a forensic audit of Nantu-Likwafela’s accounts.
“Not our job to approve budgets,” Nantu-Likwafela said.
Upon enquiry by this publication, Nantu-Likwafela spokesperson Sartie Nelulu denied all allegations.
She said the company had no say in how budgets were drawn up or approved. “We only implemented what was approved. Our role was to release funds to the approved youth businesses, procure for them equipment and handle the administrative side,” she said.
Instead, Nelulu pointed the finger at another entity, Haukongo Financial Services, which, according to her, was responsible for budget planning and consultations.
However, Haukongo Financial Services has since ceased to exist, following the death of its owner.
“If any budgets were cut, that decision came from Haukongo and not from us,” she added.
She also clarified that Nantu-Likwafela focused on buying equipment and materials for the youth businesses and collecting repayments.
Delays
Additionally, the committee’s report listed several projects that suffered due to delays and incomplete funding. Among them is a mini market in Walvis Bay Rural constituency. According to the report, this youth enterprise only received its N$228 000 loan in 2024, six years after approval.
The shop owner was quoted in the report stressing that, “By the time the money came, we were no longer the only shop in the area. We lost our competitive edge,” said the owner.
In the Kunene region, the Epupa Youth Trading project was supposed to receive N$700 000 to set up an auto repair workshop. However, only N$250 000 was paid, mostly to suppliers. The workshop remains unfinished.
Another casualty is Ondobe Youth Enterprise, a brick-making business which received N$350 000. According to the report, N$28 000 is still being held by Nantu-Likwafela. The business also lost a N$100 000 delivery vehicle in an accident and now spends profits on transport, making loan repayment difficult, the parliamentarians found.
Another SME, Outjo Brick and Block, which started in 2018, only got its main funding of N$590 000 for equipment and N$522 000 for capital in 2023. The parliament report revealed that the business is still struggling to pay salaries, though demand is growing due to nearby housing and school projects.
Some businesses said they are unable to meet their repayment targets.
“We’re only managing to pay back N$2 500 to N$3 500 per month instead of the agreed N$7 000,” one beneficiary reported.
Reform
The committee warned that many businesses lacked basic financial records and that mismanagement and poor monitoring were common. It has recommended a full audit of Nantu-Likwafela’s financial activities.
It also urged the ministry of youth to create improved youth-friendly financing options, including micro-loans and grants. The report stressed the importance of mentorship, training and support to help young entrepreneurs succeed.
Despite the problems, Nelulu said many businesses are already repaying their loans. “Not everything is failing. Some projects are moving forward and trying their best,” she said.