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NYDA Complete Funding Guide: Youth Enterprise Finance

Everything you need to know about National Youth Development Agency funding. Covers the Grant Programme, Voucher Programme, and Business Development Support for entrepreneurs aged 18-35.

20 min readUpdated 1 December 2025
Applies to:Youth-owned businesses (18-35) • Youth cooperatives • Young startups

The National Youth Development Agency (NYDA) is South Africa's primary government agency dedicated to youth empowerment and development. For entrepreneurs aged 18-35, NYDA offers grants up to R100,000, business vouchers, mentorship, and comprehensive development support. This guide covers all programmes and how to apply.

2025/26 Budget: NYDA has allocated significant funding for youth enterprise development, with the Grant Programme receiving increased budget allocation for the current financial year.

Who This Is For

  • South African citizens aged 18-35
  • Aspiring entrepreneurs and new business owners
  • Youth cooperatives and group businesses
  • Young people seeking business skills development

About NYDA

The National Youth Development Agency was established in 2009 through the merger of the National Youth Commission and Umsobomvu Youth Fund. NYDA's mandate is to advance youth development through:

  • Enterprise finance and support
  • Job preparedness and placement
  • Education and skills development
  • Health and wellbeing programmes
  • Community development initiatives

NYDA operates through a network of branches across all nine provinces, with a dedicated online portal for applications.


NYDA Funding Programmes

1. NYDA Grant Programme

Active 2025/26Non-Repayable Grant

Overview

NYDA's flagship funding programme providing non-repayable grants to qualifying youth-owned businesses. This is the most popular NYDA programme.

Funding Range

R1,000 to R100,000

Grant Tiers

  • Tier 1 (R1,000 - R10,000): Start-up businesses with minimal requirements
  • Tier 2 (R10,001 - R50,000): Established businesses with trading history
  • Tier 3 (R50,001 - R100,000): Growth businesses with strong track record

Use of Funds

  • Equipment and machinery purchase
  • Stock and inventory
  • Marketing and branding
  • Working capital (limited)

Key Requirements

  • 18-35 years old
  • South African citizen
  • Registered business (CIPC)
  • Complete NYDA Business Skills training
  • No previous NYDA grant recipient
Pro Tip: The training requirement is non-negotiable. Complete the NYDA Business Skills Programme before applying to avoid delays.

2. NYDA Voucher Programme

Active 2025/26Service Vouchers

Overview

Vouchers redeemable at approved service providers for business support services. Easier to access than grants with faster turnaround.

Voucher Values

R5,000 to R25,000 depending on service type

Eligible Services

  • Business plan development
  • Company registration assistance
  • Tax compliance setup
  • Website development
  • Branding and marketing materials
  • Financial statements preparation
  • Quality certification

How It Works

  1. Apply for voucher at NYDA branch or online
  2. Receive approval and voucher code
  3. Select approved service provider
  4. Provider delivers service
  5. NYDA pays provider directly

3. Business Development Support

Active 2025/26Free Training

Overview

Free business training and mentorship programmes available to all qualifying youth, regardless of grant application status.

Programmes Include

  • Business Skills Programme: 5-day intensive entrepreneurship training
  • Market Readiness Programme: Preparing to supply government and corporates
  • Mentorship Programme: 6-12 month pairing with experienced business mentors
  • Business Consultancy: One-on-one advisory sessions

Delivery

  • In-person at NYDA branches
  • Online through the NYDA portal
  • Hybrid programmes
Required for Grants: The Business Skills Programme must be completed before you can apply for an NYDA Grant. Start with this training if you're planning to apply for funding.

4. Youth Cooperative Support

Active 2025/26Grants + Training

Overview

Specialised support for youth cooperatives, with higher funding limits and group-focused training.

Funding Range

Up to R250,000 for registered cooperatives

Requirements

  • Registered cooperative (CIPC)
  • All members aged 18-35
  • Minimum 5 members
  • All members complete cooperative training
  • Active trading for at least 6 months

Additional Support

  • Cooperative governance training
  • Financial management for groups
  • Market linkage support

5. Second Chance Programme

Active 2025/26Rehabilitation Support

Overview

Support for youth who face barriers to mainstream programmes, including those with criminal records or who have previously failed businesses.

Target Groups

  • Young people with criminal records seeking rehabilitation
  • Previous business failure (learning from experience)
  • Youth from vulnerable backgrounds

Support Includes

  • Life skills and rehabilitation training
  • Business skills development
  • Mentorship and ongoing support
  • Small grant funding (case-by-case)

Eligibility Requirements

Age Requirements

All NYDA programmes require applicants to be aged 18-35.

  • Age is calculated at date of application
  • If you turn 36 during processing, you remain eligible
  • For cooperatives, all members must be 18-35

Ownership Requirements

  • Individual businesses: 100% youth ownership
  • Partnerships/companies: At least 51% youth ownership
  • Cooperatives: 100% youth membership (all members 18-35)

Other Criteria

  • South African citizen or permanent resident
  • Valid South African ID
  • Business registered with CIPC (for grants over R10,000)
  • Completed NYDA Business Skills Programme (for grants)
  • Not a previous NYDA grant recipient (one grant per lifetime)
  • Business operating in South Africa
Note: Tax clearance is NOT required for NYDA grants under R100,000, but you must be tax registered if your business is required to be.

How to Apply

Step-by-Step Guide

  1. Register on the NYDA Portal

    Create an account at nyda.gov.za. You'll need your ID number and contact details.

  2. Complete the Business Skills Programme

    Register for and complete the 5-day Business Skills Programme (available online or in-person). You must pass to proceed with grant applications.

  3. Register Your Business

    Ensure your business is registered with CIPC. For grants under R10,000, sole proprietor registration may suffice, but a company is recommended.

  4. Prepare Your Documents

    Gather all required documents (see list below). Incomplete applications are the main cause of rejections.

  5. Submit Application Online

    Complete the application form on the NYDA portal. Select the appropriate grant tier based on your funding needs.

  6. Attend Interview (if selected)

    Shortlisted applicants are invited for an interview at their nearest NYDA branch. Prepare to discuss your business plan and use of funds.

  7. Due Diligence & Site Visit

    NYDA may conduct a site visit to verify your business operations.

  8. Decision & Contracting

    If approved, you'll receive an offer letter and funding agreement to sign.

  9. Disbursement

    Funds are disbursed based on the approved use—often paid directly to suppliers for equipment purchases.

Required Documents

  • Certified copy of ID (not older than 3 months)
  • Proof of residence (not older than 3 months)
  • CIPC registration documents (COR14.3/COR15.1)
  • Business Skills Programme certificate
  • Business profile or plan
  • 6 months bank statements (for existing businesses)
  • Quotations for items to be purchased with grant
  • Proof of business address (lease or utility bill)

Processing Times

  • Vouchers: 5-10 working days
  • Tier 1 Grants (R1k-R10k): 20-30 working days
  • Tier 2 Grants (R10k-R50k): 30-60 working days
  • Tier 3 Grants (R50k-R100k): 60-90 working days
  • Cooperative Grants: 60-90 working days

Note: Times vary based on application volume and completeness of documentation.


Tips for Success

  • Complete training first: Don't waste time applying before you have your Business Skills certificate
  • Start with vouchers: If you need help with business plan or registration, apply for vouchers first
  • Be specific about use of funds: Vague applications are rejected—list exactly what you'll buy
  • Get proper quotations: Official quotations from suppliers strengthen your application
  • Show trading activity: If you have an existing business, provide bank statements showing transactions

Common Mistakes to Avoid

  • Applying without completing Business Skills Programme
  • Expired or uncertified ID copies
  • Vague business plans without specific financial projections
  • Requesting funds for personal expenses disguised as business needs
  • Not following up on application status
  • Missing interview appointments without rescheduling

Key Legislation

  • National Youth Development Agency Act (54 of 2008) - Establishes NYDA and its mandate
  • National Youth Policy 2020-2030 - Framework for youth development in SA
  • B-BBEE Youth Employment Service (YES) - Related corporate youth employment initiative
Explore in Accord: Access the NYDA Act and National Youth Policy in our Accord legal intelligence engine

Next Steps

Ready to Apply?

Browse live NYDA funding programmes in FundingOS. Check your readiness before applying to identify any gaps in your documentation.

Pro tip: Run the Readiness Checker on your target programme before applying. It identifies gaps in your documentation and helps you prepare a stronger application.

NYDA Contact Information

  • Website: nyda.gov.za
  • Call Centre: 0800 52 52 52 (toll-free)
  • Email: info@nyda.gov.za
  • WhatsApp: 076 386 9014
  • Branches: 17 full-service branches nationwide, 40+ local youth offices

Need Help Applying to the NYDA?

Our network of youth business consultants can help you prepare your NYDA application, develop your business plan, and access youth funding programmes.

  • Business plan development
  • Financial projections
  • Funding application support
  • Pitch deck preparation
NYDA Eligibility Criteria & Requirements 2025 | Funding Guide | Okhantu