How is Namibia Addressing Youth Entrepreneurship with a $28 Million Fund?

Windhoek, Sep 3 (NationPress) Namibia has launched a National Youth Entrepreneurship Fund worth 500 million Namibian dollars (approximately 28 million US dollars) to combat youth unemployment. The initiative, as stated by Finance Minister Ericah Shafudah, includes collateral-free loans, flexible repayment options, and lower interest rates capped at 4 percent.

During a session with lawmakers, Shafudah detailed that the fund would be administered through various development finance institutions, such as the Development Bank of Namibia, Agribank, and the Environmental Investment Fund, to enhance accessibility and minimize financing barriers for youth-led businesses, according to Xinhua News Agency.

The objective of this program is to assist at least 350 youth enterprises and generate 4,000 jobs during its initial rollout. The allocations will ensure a regional balance, with special focus on supporting women, rural youth, and individuals with disabilities.

Shafudah emphasized, "Directed lending guidelines will promote fairness by addressing regional inequalities, empowering women, and assisting marginalized groups." In addition to financial support, the fund will offer non-financial resources such as mentorship, coaching, and market access. A real-time data platform is also being established to connect government ministries and financial institutions, she added.

"This platform will enhance decision-making, minimize funding duplication, and ensure the fund is adaptable to the needs of the youth," Shafudah explained.

The initiative is part of Namibia's larger financial sector reforms and employment generation goals, aimed at alleviating poverty, fostering economic inclusion, and enhancing social stability by addressing youth disenfranchisement.

Earlier in August, Namibian Prime Minister Elijah Ngurare vowed to expedite efforts to address rural development issues, including deficiencies in clean water access, feeder roads, and digital connectivity, aligning with the government's commitment to fostering a more inclusive nation.

On August 30, while speaking in northern Namibia, Ngurare noted that numerous rural households still lack essential services decades post-independence. He stated, "The scarcity of reliable clean water access is a major challenge that affects health and growth" and reaffirmed the government's determination to improve potable water supplies, rural road infrastructure, and electricity in underserved areas.

He also pointed out that infrastructure development remains pivotal to Namibia's growth strategy, emphasizing that robust infrastructure is crucial for economic progress as it connects communities, enables farmers to market their produce, and ensures safe school access for children.

Ngurare highlighted the need to close the digital gap, asserting that rural youth require dependable internet access to study and compete globally. He announced the recent launch of new information and communication technology towers to enhance coverage in previously underserved regions.