Govt budgets N$257 million for National Youth Fund

The government has budgeted N$257 million for the establishment of the National Youth Fund (NYF) in the 2025/26 financial year.

Announced by minister of finance Ericah Shafudah during the budget vote in parliament last week, the fund is being set in place to provide financial and non-financial support to youth programmes.

Shafudah said the fund will help address the 44.4% youth unemployment rate.

“The establishment and operationalisation of the National Youth Fund is in alignment with the Swapo manifesto and the national development agenda,” said Shafudah.

Swapo’s N$85.7-billion implementation plan aims to reduce unemployment and create 250 000 jobs.

According to that plan, the NYF will get N$500 million yearly, in addition to providing apprenticeships for 10 000 young people a year, and supporting graduate internships in the public and private sectors by offering N$30 000 a year per graduate.

However, no policy exists yet on how the fund will be managed or who will manage it.

Normally, a policy framework is set prior to the establishment of a youth fund because it provides the blueprint, justification and creation of the fund.

This helps to avoid mismanagement of funds and provides clear channels of accountability.

Shafudah said the policy framework will be finalised by the end of the year and will outline eligibility criteria, governance structures, and funding modalities.

“Its operational policy framework, currently under development, will be finalised within the current financial year,” she said.

She added that the government is committed to creating economic opportunities for young people and driving inclusive growth through strategic public investment.

According to a International Labour Organisation study on national youth funds in Africa, the NYF will only be effective alongside other government initiatives to address unemployment.

“Young people are the fastest growing cohort in many economies and the sheer number of out-of-school youth cannot be addressed through the implementation of national youth funds alone,” reads the report.

Tanzania’s National Youth Fund (YDF), established in 1994, was amended last year after facing challenges.

One of the challenges was insufficient funding to meet the needs of the beneficiaries’ business ventures.

According to the report, there were also challenges in providing adequate training to beneficiaries, affecting their ability to manage and grow their businesses effectively.

However, 89% of the beneficiaries who accessed loans from YDF managed to create employment for themselves and other young people.

Additionally, YDF contributed to an increase in employment opportunities created by youth groups, rising from an average of three young people employed per group to eight after accessing the fund.

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