WINDHOEK, Sept. 3 (Xinhua) -- Namibia has rolled out a 500-million-Namibia-dollar (about 28 million U.S. 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 late Tuesday, 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.

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. ■