The Ministry of Finance is moving to overhaul the National Youth Development Fund's (NYDF) application process after overwhelming demand exposed significant challenges in the quality of applications submitted by aspiring entrepreneurs.
This has resulted in only a fraction of applicants qualifying for funding. The main aim of the fund is to reduce high unemployment, foster domestic entrepreneurship, and drive economic participation across all 14 regions without requiring traditional collateral.
While the fund has attracted over 13 400 applications from across Namibia since its launch, only 353 youth-owned businesses, or about 2.6% of total applicants, have so far been approved for funding.
The figures have prompted the ministry and its development finance partners to introduce sweeping reforms aimed at improving application quality, accelerating approvals and modernising the administration of the fund. Responding to New Era queries, Ministry of Finance spokesperson Wilson Shikoto said the low approval rate should not be interpreted as widespread rejection of applicants but rather reflected shortcomings in the quality and completeness of many submissions.
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According to exclusive information received from the ministry, approximately 13 120 applications remain under assessment or require further enhancement before they can proceed through the approval process. Also, if disbursement accelerates in line with the growing pipeline of approved projects, the government expects the fund to finance hundreds more youth-owned enterprises and support thousands of additional jobs over the next two to three years.
Meanwhile, Shikoto noted that among Agribank's second-phase applicants, 410 out of 617 applications, equivalent to 66%, were placed in a "To be Enhanced" category instead of being rejected outright. Only 127 applications were considered ready for full review, while just one applicant was disqualified for exceeding the Fund's maximum age limit of 45 years.
Advisory
Shikoto said the fund deliberately follows an advisory approach rather than simply declining applications. He explained that applicants are generally required to improve incomplete business plans, correct inconsistencies between requested funding and proposed projects, submit missing quotations or financial information, and provide outstanding documentation before their applications can progress.
"The fund operates an advisory enhancement model rather than an immediate rejection process," stated, adding that most pending applications could still advance with the necessary support.
To address these shortcomings, the Ministry of Finance, together with the Development Bank of Namibia (DBN), Agribank and the Environmental Investment Fund (EIF), intend launching a nationwide business development campaign aimed at equipping young entrepreneurs with the practical skills required before they submit funding applications.
According to Shikoto, the upcoming campaign will educate prospective applicants on how to prepare bankable business plans, develop realistic financial projections and compile complete application documents.
Shikoto added that the initiative is intended not only to improve approval rates but also to equip young entrepreneurs with skills that remain valuable regardless of whether their funding applications ultimately succeed.
Going digital
The reforms go beyond applicant training, with government developing an integrated Management Information System (MIS) to fully digitalise the NYDF application process and strengthen programme oversight. Expected to be operational by the end of September 2026, the platform will manage applications from submission through assessment, approval, disbursement, monitoring and reporting.
Shikoto explained that the digital system is intended to improve efficiency while enhancing transparency and accountability in the administration of the fund.
The ministry added that the platform will also strengthen monitoring and evaluation by providing real-time information on applications, approvals, loan disbursements, repayments and programme outcomes, thereby supporting evidence-based policy decisions. The application reforms come as government seeks to improve the effectiveness of the NYDF's three-agency implementation model.
Under the current arrangement, DBN finances mainstream business ventures, Agribank focuses on agriculture and agro-processing projects, while the EIF administers green economy investments, including renewable energy, biomass and sustainable agriculture initiatives.
Although every region has recorded approved projects, ministry data reveals significant disparities in both applications and approvals.
Regional breakdown
Khomas accounts for roughly 35% of all NYDF applications and just over one-fifth of approved projects, reflecting the concentration of businesses in urban areas.
Meanwhile, Kavango East submitted roughly 1 700 applications but has recorded only 26 approvals to date, highlighting the growing pressure on government to improve both the quality of applications and processing efficiency. The finance ministry also noted the high proportion of Agribank applications requiring enhancement that suggests advisory support should become more proactive.
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Despite these challenges, government maintains that the fund has significantly widened access to development finance by removing the traditional collateral requirements that have historically prevented many young entrepreneurs from accessing commercial bank loans. The ministry said the volume of applications received from all 14 regions, including remote areas such as Kunene, Omaheke and Zambezi, demonstrates strong nationwide demand for affordable youth financing.
However, it acknowledged that increasing access to the application process is only the first step and that improving the conversion of applications into funded businesses remains a priority. Looking ahead, the ministry believes the combination of applicant training, digital processing and improved monitoring should substantially increase the pace of approvals.
Moreover, Shikoto said demand for the Fund remains strong and encouraged aspiring entrepreneurs to invest time in preparing complete, well-costed business plans and to timeously engage with the appropriate implementing institution before submitting applications.
