Mbabane – The Youth Enterprise Revolving Fund (YERF) has been allocated an E25 million budget for the 2026 financial year, with the funding designated to loan to young entrepreneurs’ start-ups.
The information was disclosed by the YERF Chief Executive Officer (CEO), Mandla Nkambule, in a conversation with the Eswatini Television Authority’s (ETVA) Kusile Breakfast Show.
Nkambule mentioned that the available funds will be utilized to finance business proposals from young individuals who meet the eligibility criteria and demonstrate viability. This initiative is part of the government’s plan to reduce youth unemployment by supporting youth-owned enterprises and also to generate employment opportunities.
The E25 million is earmarked for youth and entrepreneurs to apply for loans as well as support both new start-up businesses and existing enterprises seeking expansion.
Established in 2009 by the government under the Ministry of Sports, Culture, and Youth Affairs, YERF’s mandate is to offer affordable financial support to young people aged 18 to 35 involved in income-generating projects. The Fund prioritizes providing loans without the collateral typically required by commercial banks and also offers business development support. YERF provides funding across various sectors, including agriculture, manufacturing, retail, services, and creative industries.
Applications for funding have increased over the years, with much boost coming from the introduction of its digital application systems. The transition from manual to online submissions has led to higher application volumes from young people nationwide.
The CEO noted that the digital application system has enhanced accessibility, allowing applicants to submit documents remotely without the need for physical travel.
Loan amounts are determined by the business category, with funding available for both start-ups and business expansion. Beneficiaries are required to complete basic business training and mentorship as part of the loan process. Nkambule emphasized the Fund’s ongoing focus on responsible borrowing and repayment to ensure the sustainability of the revolving fund.
YERF evaluates applications based on specific criteria, including the viability of the business proposal, financial projections, and the applicant’s commitment to the project. The Fund has previously encountered challenges with loan repayment and has since implemented monitoring and support mechanisms to improve compliance. These measures include follow-up visits, business mentorship, and continuous engagement with beneficiaries.
The 2026 funding allocation is part of continuous efforts to boost youth participation in economic activities and promote entrepreneurship as an alternative income source. Applications for YERF funding remain open through the Fund’s digital platforms, with assessments conducted on a rolling basis.
Nkambule urged applicants to ensure their business plans are clear and realistic, as all applications undergo an assessment to determine viability. He reiterated the importance of repayments for the revolving fund, stating that timely repayments enable the fund to support more young people in the future.
Discussion about this post