From 2020, Namibian Startups May Get Higher Funding Under The Youth Credit Scheme 

September 12, 2019

At this age and time, $135 may no longer be enough to start up a business in Namibia. This is what the review of the old Namibian Youth Credit Scheme seeks to consider. The Namibian government is reviewing the country’s Youth Credit Scheme as it seeks to enhance capacity in providing financial services to start-up youth business enterprises. The Namibia Youth Credit Scheme provides start-up loans to young Namibians aged 18 to 35 seeking to establish or expand their businesses.

Here Is All You Need To Know

  • The Namibia Youth Credit Scheme (NYCS) is a youth credit initiative formulated to enable youth of Namibia to access capital, enabling them to significantly participate in the socio-economic development of Namibia, according to a report by the scheme.
  • The NYCS was co-funded by the Ministry of Youth, National Service, Sport and Culture (MYNSSC) and the Social Security Commission of Namibia. It is an integrated support programme, providing simplified business management training as well as loans ranging from N$400 to N$4000 as a means of supporting youth of ages ranging from 18 to 35 years in their efforts to establish small and medium enterprise (SME) initiatives as strategies for self-employment and income generation, thereby improving their living standards.
  • During 2018, the Scheme dispersed seed capital to 218 Namibian youth-led business es countrywide, valued at 1.8 million Namibian dollars. 
  • The loans are given to individuals in groups from the same community (usually 5–10 people). It is necessary for the young people to be recommended by their parents or legal guardians in order to join the programme (they need to either sign a letter or the loan agreement).
  • The review aims to take another look at its funding model for small-medium enterprises, and to ensure that the programs meet current demands.

The Gross Domestic Product (GDP) in Namibia was worth 14.52 billion US dollars in 2018. The GDP value of Namibia represents 0.02 percent of the world economy. GDP in Namibia averaged 5.99 USD Billion from 1980 until 2018, reaching an all time high of 14.52 USD Billion in 2018 and a record low of 1.61 USD Billion in 1985.

“The Scheme was initially launched as a social welfare program through the Commonwealth. Currently, funding starts from 2,000 Namibian dollars (135 U.S. dollars), which is no longer adequate for most start-ups, which poses a challenge to wider national economic development. Hence; the need to review the Scheme,” Emma Kantema-Gaomas, executive director of the Ministry of Sport, Youth and National Service said.

The total population in Namibia was estimated at 2.5 million people in 2018, according to the latest census figures. Looking back, in the year of 1960, Namibia had a population of 0.6 million people.
According to Kantema-Gaomas, the ministry is underway with consultative meetings with key stakeholders to review the amount to be provided to entrepreneurs and unemployed youth, as well as other modalities.

“The prime objective is further to strengthen the program, and come up with a model that will drive sustainability and economic prosperity,” she added.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

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