The Development Bank of Namibia (DBN) will launch a youth-focused loan facility in mid-August, easing collateral requirements and widening the range of eligible sectors under the recently introduced National Youth Fund.
Interim CEO John Mbango said the new guidelines aim to address low uptake of loans by youth-owned businesses, which he attributed to strict conditions attached to earlier financing schemes.
“Previously, the main barrier has been the collateral requirements and other conditions. With the new National Youth Fund, we have developed guidelines that will make it much easier for youth to access funding. Even the pricing has been adjusted to be more favourable,” Mbango said.
Under the revised terms, conventional collateral will no longer be required, with financed assets serving as security instead. Mbango described this as a “key or game changer” compared to previous loan products.
“The guidelines specify who should participate and which industries are included. There is also an exclusion list. Collateral won’t necessarily be required, but the assets we finance will be part of the collateral,” he explained.
The facility will target sectors such as agro-processing, hospitality, tourism, ICT, creative industries, and professional services provided by specialists and vocational trainees. AgriBank will collaborate on farming-related ventures.
“The facility will be effective from mid-August. It will assist specialists like doctors and graduates from Vocational Training Centres. The main focus sectors are hospitality, tourism, agriculture, especially agro-processing, and AgriBank will support farming businesses,” Mbango said.
The N$257 million National Youth Fund was approved by Cabinet to support start-ups and growing youth-led businesses, in line with efforts to tackle Namibia’s youth unemployment rate, currently estimated at 44.5%.
