Windhoek, Sep 3 : Namibia has rolled out a 500-million-Namibia-dollar (about 28 million US dollars) National Youth Entrepreneurship Fund to tackle youth unemployment, offering collateral-free loans, flexible repayment terms and reduced lending rates capped at 4 percent, Finance Minister Ericah Shafudah has said.

Speaking to lawmakers, Shafudah said the fund will be disbursed through several development finance institutions, including the Development Bank of Namibia, Agribank and the Environmental Investment Fund, to expand access and avoid bottlenecks in financing youth enterprises, Xinhua News Agency reported.

She said the scheme aims to support at least 350 youth businesses and create 4,000 jobs in its initial phase, with allocations ensuring regional balance and targeted support for women, rural youth and persons with disabilities.

"Directed lending guidelines will also ensure equity by addressing regional imbalances, promoting women's empowerment, and supporting marginalized communities," the minister said.

The fund will also provide non-financial support such as mentorship, coaching and market access, while a real-time data platform will be established to link government ministries and financing institutions, Shafudah said.

"This platform will improve decision-making, reduce duplication of funding, and ensure the fund remains adaptive and responsive to the needs of young people," she said.

Shafudah said the initiative aligns with Namibia's broader financial sector reforms and employment creation objectives and is expected to reduce poverty, promote economic inclusion and strengthen social stability by addressing youth disenfranchisement.

Earlier in August, Namibian Prime Minister Elijah Ngurare pledged to accelerate efforts to address rural development challenges, including a lack of clean water, feeder roads, and digital connectivity, as part of the government's commitment to building a more inclusive nation.

Speaking in northern Namibia on August 30, Ngurare said many rural households still lack basic services, decades after independence.

"The lack of reliable access to clean water is a fundamental challenge that affects not only your health but also your ability to thrive," he said, stressing the government's resolve to expand potable water supply, rural roads, and electricity to underserved areas.

He noted that infrastructure development remains central to Namibia's growth strategy, adding that good infrastructure is vital for economic development as it connects communities, enables farmers to bring their produce to market, and ensures children can get to school safely.

Ngurare also highlighted plans to bridge the digital divide, pointing out that young people in rural constituencies need reliable internet to study and compete in the global economy. He said new information and communication technology towers were recently launched to extend coverage to previously underserved communities.

/IANS