The National Empowerment Fund (NEF) and the National Youth Development Agency (NYDA) have partnered to launch the National Youth Fund, a R100 million initiative aimed at supporting youth-owned businesses across South Africa. The five-year partnership was signed at the NYDA’s head office in Sunninghill, Johannesburg, on 14 September 2026.
NEF and NYDA Partner to Launch National Youth Fund
The National Youth Fund represents a strategic collaboration between two key government institutions to address the barriers young entrepreneurs face in accessing finance. NYDA Executive Deputy Chairperson Bonga Makhanya described the agreement as a demonstration that government institutions can work together to remove obstacles preventing youth from entering markets and growing sustainable businesses.
Funding Breakdown and Financial Support
The R100 million commitment is divided between the two institutions:
- R90 million from the NEF, provided as growth finance in the form of repayable loans
- R10 million from the NYDA, supporting enterprise development and investment readiness through grants
The NEF loan term may extend up to seven years, with a repayment break of up to six months, or up to 12 months for young women.
Eligibility Requirements for Young Entrepreneurs
To qualify for support, businesses must meet the following criteria:
- Be at least 50% plus one share youth-owned
- Youth shareholders must be between 14 and 35 years old
- Be commercially viable, registered in South Africa, and tax compliant
- Have Black people involved at management and board level as per B-BBEE codes
The announcement describes the target group as individuals aged 18 to 35, and businesses owned, controlled and managed by people in that age group.
Business Development and Mentorship Support
Beyond financing, the partnership provides comprehensive business support including:
- Feasibility studies and certification
- Incubation and enterprise development
- Training, mentorship, and market-linkage assistance
- Compliance support through the NYDA Voucher Programme
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Preferred Sectors and Priority Areas
While all NEF-funded sectors may be considered, preferred areas include the green economy, digital economy, aggregators, and natural and cultural beneficiation. The fund also targets manufacturing, renewable energy, agriculture, and infrastructure.
How to Apply for the National Youth Fund
Applications can be submitted online through the NEF website at https://online.nefcorp.co.za/. For more information, contact the NEF Call Centre on 0861 843 633 or the NYDA on 0800 58 58 58.
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