Apply – The Eswatini Youth Enterprise Revolving Fund (YERF)

The Eswatini Youth Enterprise Revolving Fund (YERF)

Deadline: 30th July 2021

Eswatini Youth Enterprise Revolving Fund (YERF)

Applications are now open for The Eswatini Youth Enterprise Revolving Fund (YERF). Eswatini Youth Enterprise Revolving Fund (YERF) is a Category A Parastatal that was established by the Government of the Kingdom of Swaziland. The financial aid is targeted to young entre-preneurs who want to start new or expand businesses.

The main purpose of the Fund is to promote youth empowerment and alleviate poverty among young people between the ages of 18 to 35 years old.

Filling of Application forms

The applicant fills in the forms providing information which shall among others include:

  • Information about the applicant(s)
  • Form is taken to Umphakatsi or Zone Leader for vetting they append their signature and stamp the form
  • The form is taken for further vetting at Inkhundla through signature and stamp
  • The form with all the attachments is submitted to The Fund offices, ENYC Offices or left at Inkhundla Centre where it shall be collected
  • Applicants should ensure that before submission, attachments are included as guided in the requirements checklist found in the last page of the application form.


The following attachments shall be necessary to accompany the submission of the application form:

  • Certified copy of ID
  • Certified copy of Certificate of Incorporation (for a registered company)
  • Certified copy of Form J
  • Certified copy of Memorandum & Articles of Association
  • Premises / Land right (Chief’s Letter, Title Deed, Lease Agreement, etc.)
  • Business Plan (Include relevant CV)
  • Market Contract/Letter of intent as proof of market
  • Trading Licenses (where applicable)
  • The applications received shall not be interpreted as deserving funding.

Only relevant requirements shall be attached by the applicants i.e. not all the above requirements are applicable to all applications.

Loan Appraisal Process

The appraisal process shall be as follows:

  • Stage 1 – YERF pre-screening to ensure;Compliance, Eligibility and Feasibility.
  • Stage 2 – Pitch up for qualifying applicants to present their business proposals.
  • Stage3 – Qualifying applications are referred to the Intermediary for viability analysis including site visits.
  • Stage 4 – Viable applications are recommended to YERF by the Intermediary, where the Board of Directors shall approve projects deserving funding.
  • Stage 5 – Feedback is sent to applicants. Those that are not successful shall be given reasons for non-approval and they will be assisted to improve them and re-submit in the next cycle.
  • The process between receipts of loan applications to approval stage is expected to take about one (1) month.


  • The disbursement of funds shall follow the process below:
  • The successful applicants shall undergo and intense business training
  • Those that have previously undergone training from a reputable institution shall be exempted from the training.
  • The successful applicants shall proceed to sign loan agreements
  • All applicants will be expected to open bank accounts for their businesses.
  • A mentor/advisor shall be assigned to the applicants before disbursement of funds. The mentor shall also be co-signatories to procurement or expenditure requisitions.
  • Disbursements shall be made direct to suppliers as much as possible.

Size of Loans

There shall be different lending limits for Individuals, companies and cooperatives. Deviation from these limits shall be at the discretion of the youth fund in consultation with the intermediary. The following maximum lending limits shall be observed:

  • Individuals – E50,000.00
  • Companies – E100,000.00
  • Cooperatives – E150,000.00

Loan terms to be provided

  • Seasonal term   – 12 Months
  • Short term         – 24 Months
  • Medium term    – 36 Months

Interest rates

The fund will endeavor to price loans below market rate due to developmental mandate. Interest rates shall be categorized into the following three market segments subject to risk assessment.

  • Market 1 – Prime +2% = 12.0%
  • Market 2 – Prime +1% = 11.0%
  • Market 3 – Prime +0% = 10.0%

Currently the Prime rate is 10.0%

Market Segmentation

There shall be different lending limits for Individuals, companies and cooperatives. Deviation from these limits shall be at the discretion of the youth fund in consultation with the intermediary. The following maximum lending limits shall be observed:

Variables Micro Very small Small Medium
Turnover (E) 2,500 60,000 150,000 600,000
No. of Employees 1 – 4 5 – 9 10 – 49 50 – 200

Term of Loans

While the fund does not have appetite for long term lending, it still remains a fact that development finance in its nature is more inclined to long term lending. There is therefore a need to balance need to maintain good liquidity as well as address the projects needs for its success. The term of loans shall therefore range between 12 – 36 months, subject to the size of the project as well as the nature of the project cycle. Loan repayments shall be scheduled in accordance to the production cycle of the businesses. The production cycle will differ from one business to another.

Deposit Contribution

It is enshrined in the mandate of Youth Enterprise Fund that the seed capital loans would be collateral free. The beneficiaries shall not be expected to contribute neither up front deposit nor collateral. This is aimed at maximising access to credit by youth entrepreneurs.

Coaching & Mentorship

Post funding, coaching and mentorship of the young entrepreneurs on an ongoing basis is one of the fundamental prerequisites to ensure performance and repayability of loans by the youth. The youth is often still immature and lacks experience in business management, therefore the fund will facilitate mentorship and coaching through local business development service providers.

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Israel Wellington Jeremiah is the Admin and publisher at Empowerment Opportunities. A seasoned online publicist and an entrepreneur.

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