namibia youth credit scheme (nycs) empowering the youth, securing the future programme document :...

NAMIBIA YOUTH CREDIT NAMIBIA YOUTH CREDIT SCHEME (NYCS)SCHEME (NYCS)Empowering the Youth, Securing the

Future

Programme Document :

2007---2012

NYSC Programme SecretariatMinistry of Youth

Introduction Introduction NYCS stands for Namibia Youth Credit

Scheme

It is a youth empowerment programme through enterprise development

It is the follow-up phase of CYCI pilot phase that was implemented in 4 regions of central northern Namibia

It targets committed out of school youthProgramme Duration --5 yearsBudget: N$ 40,000,000.

Features of the programmeFeatures of the programme

The target beneficiaries are youth (18-35 years)Operations through the group lending

methodologyTraining in basic business management Provision of credit. Follow-up training, counseling and mentoring.Access to other products after graduating from

the initial package

What makes NYCS/ CYCI a good What makes NYCS/ CYCI a good model?model?

This is an integrated business development model that targets committed out of school youth and prepares them to start and grow their own enterprises with the objectives of generating incomes, creating employment opportunities and contributing to the alleviation of poverty.

Development Goals of Development Goals of NYSCNYSC

To increase the participation of the youth in the country’s economic affairs.

To promote entrepreneurship among youth through structured and integrated support.

To increase access to business support services (training, counseling, mentoring)

To increase access to financial services among the poor

Justification of NYCSJustification of NYCSHigh levels of unemployment,

particularly among youth (+43.2%)Demonstration of CYCI as an effective

tool through the pilot phaseSupport systems for small enterprise

development

Adaptations from the pilot Adaptations from the pilot phasephaseUse of the market to identify implementing

agenciesTraining to be enhanced to include follow-up

and mentoring Loan fund to be coordinated by programme

secretariatHigher partnership with programmes seeking

similar outcomesStronger role of the Management Advisory

BoardSupport and approval by the Cabinet for

replication to all 13 Regions.

Objectives of NYSCObjectives of NYSCTo create 13,000 jobs To provide basic business management skills to

5,000. (4750)To establish 5,000 sustainable enterprises. (398)To build the capacity 200 village banks (180)To build the capacity of five youth support

organizations into Micro Finance Institutions. (Already five)

To establish a revolving loan fund of N$ 15,000,000 (+1,500,000.00) (4,000,000)

To mobilize savings of N$ 10,000,000. (2,500,000)

Institutional FrameworkInstitutional FrameworkLead agency…MYNSSC…to articulate

policy and mobilize programme resources. Management Advisory Board. Implementing agenciesTraining Service ProvidersRegional CentersProgramme SecretariatYouth

Components of NYSCComponents of NYSCLoan FundTraining (including mentoring)Capacity building and

coordinationConsultancies, Studies and

Technical AssistanceMonitoring and Evaluation

LOAN FUNDLOAN FUNDTo be coordinated by the Management

Advisory BoardCore product to be the CYCI…training

with three loans Fourth loan for growingProducts to be

devebusinesses N$ 50,000 U$ 6,500Revolving loan fund to be coordinated

by programme secretariat, reporting to MAB

Target repayment rate..95%

TRAINING (Youth)TRAINING (Youth)Include basic business

management training, follow-up training and mentoring for youth

Continuous material up-grading and adaptation.

Targeting 5000 youth

Capacity Building and Capacity Building and CoordinationCoordination

Includes strengthening the institutional framework.

Training, exposure, working tools to: MABSecretariatImplementing agenciesYouth Officers

Consultancies, Studies and Consultancies, Studies and Technical AssistanceTechnical Assistance

To support implementing agencies through ongoing advisory support

To gather data or analyze specific issues

To assess capacity of potential implementing agencies

To undertake market research and develop new products or refine old ones.

Monitoring of the Monitoring of the programmeprogramme

MAB, in policy making, visit the beneficiaries, and do assessment of implementing agencies .

Secretariat, staffs visits implementing agencies and beneficiaries.

Quarterly report from the implementing agencies on activities carried out before a fund is disbursed to them

Youth Centers, the youth officers monitor the beneficiaries on regular basis for progress report and for business advices.

Implementing Agencies are directly involved with the beneficiaries and they translate the programme policies/strategies and estimated programme output/outcome to the last beneficiaries.

Parents/ Village Head and Constitution Concillers are invited mostly to the loan fund disbursement ceremony.

Evaluation of the Evaluation of the programmeprogramme

. The target and the progress is considered and the lesson learnt will be incorporated during further implementation of the programme

. All stakeholders forum annually for progress report

. MTR is carried out to ascertain the progress of the programme.This was done during the pilot phase and is currently one on going.

5 Year budgets the 5 Year budgets the componentscomponentsLoan Fund: N$ 17,200,000

Training (incl. ment.): N$ 8,489,000Capacity building: N$ 3,456,000Consult., Stud. and TA: $ 3,410,000Mon. and Evaluation: N$ 2,800,000

Analyses of BenefitsAnalyses of BenefitsThe economic value of :

13,000 jobs Revolving loan fund of N$ 15,000,000 Savings mobilized of N$ 10,000,000 5,000 sustainable enterprises Capacity building of 200 village banks Capacity of 5 MFIs

Exceed the programme cost of N$ 40,000,000.

The programme funds mobilized stands at N$26,000,000 having a difference of N$14,000,000 =N$2,000,000

Programme AssumptionsProgramme Assumptions

the current environment of political stability and peace will be maintained

the programme after the Mid Term Reviwe to be complited by June 2011 to become a Micro Finance Institution with the support of the Government,

the programme will continue to enjoy Government support and backing,

Social Security Commission will continue its relationship with the NYCS

the business environment will continue to be favorable, and current policy initiatives in support of SME development will continue.

the current institutional set-up, including the MAB, will be maintained .

Supporting our youthSupporting our youth(adding value to natural resource base)(adding value to natural resource base)

Supporting our youthSupporting our youth(adding value to natural (adding value to natural resource base)resource base)

Supporting YouthSupporting Youth(enhancing their hopes)(enhancing their hopes)

Supporting YouthSupporting Youth(enhancing their hopes)(enhancing their hopes)

Supporting YouthSupporting Youth(enhancing their hopes)(enhancing their hopes)

Supporting YouthSupporting Youth(improving livelihoods)(improving livelihoods)

Supporting YouthSupporting Youth(improving livelihoods)(improving livelihoods)

Supporting youth (improving Supporting youth (improving livelihood) Oshakatilivelihood) Oshakati

Youth improving livelihood Youth improving livelihood

Secretariat visit to Secretariat visit to beneficiariesbeneficiaries

Supporting YouthSupporting Youth(improving livelihoods)(improving livelihoods)

Programme FundingProgramme FundingPilot Phase was funded through a

tripartite partnership involving SSC, CYP and the Ministry of Youth.

The main phase counts on partnership building, to todate SSC and the GRN through the MYNSSC has pledged for financially support of the programme. Proposals are also send to a number of Institutions for possible funding.