Bridging the gap between youth and access to financial services

Bridging the gap between youth and access to financial services

Social norms, product suitability and lack of collateral are some of the hindrances to inclusive finance for women and youth cited by the Mastercard Foundation partners under the Young Africa Works Program in Uganda.

This was discussed during the launch of the Young Africa Works community of practice on inclusive finance in January 2023. Inclusive finance means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way.

The community of practice on inclusive finance will provide a platform to convene and share ideas, resources, and lessons on a wide range of topics related to financial inclusion. It is one of many collaborative and intentional approaches of the Mastercard Foundation Young Africa Works program to ensure more impactful delivery and achievement of benefits for young people.

“The ultimate intention of the community of practice on inclusive finance is to deepen understanding of the various aspects of inclusive finance and drive a more collaborative and intentional approach to program implementation,” said Arnold Byarugaba the Foundation’s MSME Finance Lead during the launch.

Composed of all partners under the Young Africa Works program in Uganda, the community of practice on inclusive finance will review ongoing challenges, gains, and opportunities affecting financial inclusion within the Young Africa Works interventions in Uganda and pivot accordingly to achieve greater impact.

During the first gathering, partners learnt from each other what others are doing to sustainably enable young people in work. Group discussions brought to light the financial inclusion gaps for each partner as well as recommendations on how these can be filled or addressed for that matter.

Even though the community of practice on inclusive finance membership is primarily for Young Africa Works partners, bridging the gap between youth and access to financial services isn’t exclusive to the partners. Establishment of the community is evidence that all stakeholders seeking to impact youth need to reflect on their financial inclusion gaps, come up with solutions on how they can be bridged and implement them.

A steering committee was set up and is responsible for both governance and technical aspects of running the community of practice on inclusive finance, including tasks such as setting or reviewing the community’s objectives. Going forward, meetings will be held on a quarterly basis tackling different themes that are relevant to the impactful implementation and deepening access to finance amongst women, youth and refugees under the Young Africa Works Programs funded by the Mastercard Foundation.

Since its launch, one quarterly meeting has been held in March 2023. The theme of the meeting revolved around ‘unlocking access to finance partnerships for program participants’.  A key highlight from the meeting is acknowledgement that traditional financial institutions are not sufficient to meet the needs of startup enterprises yet majority of these make up the Young Africa Works target group. Partners agreed to intentionally craft solutions on how to meet the finance and growth needs of businesses at ideation and start up stage.


About the Young Africa Works Program

The Young Africa Works Program works closely with key stakeholders to enable young women and men, including refugees, internally displaced youth, and those living with disabilities, to acquire the skills needed to find employment or create work opportunities. Financial sector Deepening Uganda is leading the partnership on financial inclusion.

Share:

IRA Regulating for Innovation – Case study

IRA Regulating for Innovation – Case study

    Download Case Study

    The enactment of a new Insurance Act, which came into operation in early 2018, expanded the Insurance Regulatory Authority (IRA)’s mandate from market soundness and consumer protection to also include market development. As part of this new mandate, the IRA is committed to encourage and facilitate innovation in its market. However, encouraging innovation may introduce new risks, thereby leading to conflict between the different mandates. To strike the right balance, the IRA recognised that it needed to update some of its existing supervisory processes and regulations, plus introduce new tools to steer its interaction with the market.

    Share:

    The Overall Impact of COVID on The Economy; An Agile Scenario Analysis

    The Overall Impact of COVID on The Economy; An Agile Scenario Analysis

      Download Report

      This agile scenario analysis conducted in partnership with the Ministry of Finance, Planning and Economic Development and The Bank of Uganda explored the potential short and mid-term economic effects the pandemic would have on the key labour segments. Using additional insights from ongoing economic recovery efforts, the team also identified the potential role various sectors could play in strengthening the inclusiveness of the country’s recovery efforts.

      Share:

      Assessing the Economic Resilience of Ugandan Households During COVID

      Assessing the Economic Resilience of Ugandan Households During COVID

        Download Report

        This phone-based survey conducted between April 2020 to September 2020 over five waves provides a detailed analysis on the resilience of the sample surveyed. It demonstrated:

        Share:

        Highlights: Impact of COVID-19 on the economic resilience and financial behaviour of Ugandans

        Highlights: Impact of COVID-19 on the economic resilience and financial behaviour of Ugandans

          Download Report

          FSD Uganda partnered with the Ministry of Finance, Planning & Economic Development and undertook a COVID-19 tracker survey which traced the impact of COVID-19 on livelihoods, financial behavior, and social responses of Ugandans. The phone-based survey was conducted in 5 waves between April and September 2020.

          Similar surveys were conducted by the FSD Network in Kenya, Rwanda, South Africa, Nigeria, Zambia, and Ghana. The COVID-19 Tracker explored composite data sets from across the continent.

          This highlights document is based on an analysis of data from the five waves of the tracker survey and presents insights on how the pandemic continues to affect Ugandan adults across several domains.

          Share:

          Unlocking the Potential of Uganda’s Housing Value Chain Through Strategic Partnerships and Collaboration

          Unlocking the Potential of Uganda’s Housing Value Chain Through Strategic Partnerships and Collaboration

            Download Presentation

            By Jimmy Ebong and Maria Nkhonjera
            Uganda’s Financial Sector Development Strategy (FSDS) estimates the country’s housing deficit to be 1.6 million units, with an annual requirement between 180,000 and 210,000 units. Given rapid rates of population growth and urbanisation, a widening housing need may overwhelm cities in the near future. Uganda has the third highest population growth rate in Africa (at 3.6%), while the country’s urbanisation rate is projected to be 5.6% per annum. Urban households are expected to grow to 3.8 million in 2025, from 2.9 million in 2020 – a 31% increase. Uganda’s urban areas are therefore poised for a rapid increase in households, implying a huge demand for adequate, affordable housing. Only 44% of the urban population own their dwellings[1], while the 2018 FinScope Survey indicates 19% of adults aspire to acquire a house.

            Share:

            Regulating for Innovation Supervisory Toolkit

            Regulating for Innovation Supervisory Toolkit

              Download Toolkit

              The fast-paced changes in the financial sector are primarily driven by innovation and advancements in technology. Proactive engagement with the market will help policy makers and regulators build their understand of trends and allow them to effectively assess the opportunities new technologies present against any emergent risks.

              Share:

              Cooperatives as Engines of Transformation

              Cooperatives as Engines of Transformation

              By Anthea Paelo

              Cooperatives continue to be an important engine for economic productivity and growth in countries like Uganda. They play a critical role in mobilizing savings, increasing access to credit, and facilitate various activities along production value chains, including procurement, storage and distribution. Where, for example, a farmer might find it challenging to access a tractor to plough his fields, or credit to purchase seeds, as a part of a cooperative he can access these inputs more readily and at much better terms. It is perhaps for this reason that as of January 2020, agricultural cooperatives numbered over 9,000, double the number just twelve years ago1.

              Share:

              Determinants of Interest Rate Spreads in the Ugandan Banking System

              Determinants of Interest Rate Spreads in the Ugandan Banking System

                Download Presentation

                FSD Uganda Executive Director made a presentation as a discussant at the Bank of Uganda (BoU) and International Growth Centre (IGC) Policy Seminar on lending rates. Download the presentation to find out about why we should care about bank interest rate spreads and how it affects every day Ugandans and Ugandan businesses.

                Share:

                Insurance Innovation Dialogue; Opportunities in the time of COVID-19

                Insurance Innovation Dialogue; Opportunities in the time of COVID-19

                By The FSD Uganda Team

                The Insurance Regulatory Authority (IRA) of Uganda, in partnership with FSD Uganda and the Innovation Village, hosted an interactive virtual workshop on 19th November 2020, to discuss the opportunities and challenges to innovation in the Ugandan insurance market.

                Share:

                Government to Person (G2P) Payment Guidelines

                Government to Person (G2P) Payment Guidelines

                  Download Report

                  Financial Sector Deepening (FSD) Uganda is the country’s leading institution on financial inclusion and inclusive financial market development. FSD Uganda provides technical assistance and catalytic grants to enable innovation and scale.

                  Share:

                  Market Research on Unsecured Lending for MSMEs

                  Market Research on Unsecured Lending for MSMEs

                    Download Report

                    Micro, small, and medium enterprises (MSMEs) (including smallholder farmers) struggle to access formal credit due to a lack of collateral and poor record keeping preventing them from making productive investments.

                    FSD Uganda works to build inclusive credit market infrastructure to address the retail and business credit gap. FSD Uganda commissioned a study about unsecured lending to MSMEs in high density markets in Kampala, aimed at understanding the demand and supply challenges in accessing working capital. Examples of high-density markets include: Owino, Nakawa and Kalerwe markets.

                    Share:

                    Informal Sector Pensions: Protecting millions of East Africans from old-age poverty

                    Informal Sector Pensions: Protecting millions of East Africans from old-age poverty

                    By Joseph Lutwama.

                    It is everyone’s desire to retire with a roof over their head and a decent income that will sustain them through their old age. However, very few ever realize that ideal, and it remains a dream that eludes millions in the region. Many East Africans never retire but die while toiling away as their productivity decreases. Economists and financial experts tell us that it is possible for one to save for retirement, and if those savings are invested well, they stand a better chance of reducing their old-age vulnerability and living their retirement dream. However, this is not the case in East Africa. Kenya, which has the highest pension sector coverage, sees only two out of every 10 working adults save for retirement. What could explain this paradox? In East Africa, the pension system is predominantly focused on the formal sector, leaving the informal sector largely unattended to. With levels of informal employment in East Africa as high as 91 percent, it follows that there would be such low levels of formal retirement savings.

                    Share:

                    Strengthening the effectiveness of Uganda’s consumer protection framework

                    Strengthening the effectiveness of Uganda’s consumer protection framework

                      Download Publication

                      An assessment of credit cost disclosures
                      There is a need to promote trust in the financial sector by putting robust consumer protection measures in place – this will help protect lower-income borrowers from poor market conduct and bridge the credit gap in the market.

                      Share:

                      Message from FSD Uganda Executive Director on COVID-19

                      Message from FSD Uganda Executive Director on COVID-19

                      Uganda confirmed its first case of COVID-19 this weekend. The Government of Uganda, together with private sector actors, continue to demonstrate great leadership by putting in place and adopting progressive measures aimed at protecting Ugandans and limiting the impact of the pandemic.

                      Share:

                      Guest blog – Harnessing the power of data to create relevant products and services for consumers

                      Guest blog – Harnessing the power of data to create relevant products and services for consumers

                      The 2019 Financial Inclusion Week themed Financial Inclusion: For What? Is being recognized globally between October 21 and October 25. The Financial Inclusion Week (FIW) is aimed at getting stakeholders to revisit their fundamental purpose and renew efforts to achieve financial inclusion. FSD Uganda will share a series of reflections from our technical experts and stakeholders. Today, we hear from the Uganda Communication Commission about opportunities that exist to protect and empower consumers through information…

                      Share:

                      Our Donors & Partners

                      European Union Logo
                      Report a concern anonymously

                      FRAUD AND ETHICS HOTLINE

                      Subscribe to our PUBLICATIONS

                      OUR CONTACTS

                      ADDRESS:
                      Plot 7A, John Babiha (Acacia) Avenue, Kololo
                      P.O. Box 608 Kampala, Uganda
                      TEL: +256 393 231260/2

                      © Copyright FSD Uganda 2015 – 2022. All Rights Reserved.