Plan’s Youth Microfinance Project: Building effective youth financial inclusion programming John Schiller, Global Savings Group Advisor, Plan International Ibrahim Ben, Youth Representative, Niger Isatu Veronica Sesay, Youth Representative, Sierra Leone
Program Approach • Youth participation in design, outreach, training, technical assistance and monitoring resulting in youth leadership development • Savings groups as the entry point and organizing mechanism • Other services to develop skills & knowledge and sustain interest • Vigorous use of youth community volunteers • Strong learning component
Take-Aways (Overall) • SGs highly appropriate for youth (urban & rural) - 3.5 year outreach: 81,000+ - Member retention per cycle: 97.1% - Loans past due: 1.1% - Average annualized return on assets: 23.5% • Involve youth in market research, start with existing youth groups, involve parents and community leaders and use youth as ambassadors • Avoid training centers; take advantage of village and neighborhood affinities • Have an answer ready when youth ask, « And now what? » • Need to logically integrate services instead of just « mixing » them
Take-Aways (Overall) – cont’d • Community volunteers need more coaching and financial support than adults who play this role • Need to revisit « sustainability »; SGs for youth more of an educational asset than community institutions • Linkages between SGs (or SG members) and formal financial institutions still very preliminary and inconclusive • Youth play a substantive role in project implementation – a key determinant in project success • Much of the learning still to come (financial diaries and household survey results)
Take-Aways (rural) • Project not designed to produce a rural/urban comparison – so more research needed • We can nevertheless say anecdotally: - SGs even more appropriate in rural areas because of greater lack of financial institutions - Stronger rural social affinities lead to stronger groups - More reluctance to borrow (probably because of more limited economic opportunity) - More limited economic opportunity may lead to higher out-migration
Youth experience in the Youth Microfinance Project Ibrahim Ben’s Story President of the Project’s Youth Advisory Board in Niger, representing 29,000+ youth project participants in the country • Prior to the Youth Microfinance Project there were few opportunities for youth in Niger. • With the information I received on the Youth Microfinance Project, I understood that the objectives included empowering youth and enabling them to become primary stakeholders in the project implementation.
Ibrahim Ben’s Story • My participation in the project was facilitated through the awareness raising sessions conducted by project field agents in my community. • Having read all the information relating to the objectives of the project, my peers and I created our own savings groups called Wafakay (Together). I was designated group secretary since I am able to read and write and due to my involvement in other youth organizations at the district level. • One year later, I became a member of the Youth Advisory Board where I had the opportunity to interact with other youth savings groups members, the project partners and Plan. • In 2012 I was elected as the president of the Youth Advisory Board which came with a number of new responsibilities.
Ibrahim Ben’s Story In undertaking these new responsibilities I was able to: • Believe in myself. • Develop technical and communication skills. • Develop the qualities of a manger and leader. • Benefit from the trust and respect of the project partners after early challenges in collaboration (they now respect and take into consideration the recommendations of the Youth Advisory Board). • Benefit from the respect and trust of Plan Niger. Recently Plan Niger entrusted me to provide life-skills training to 750 female Malian refugees. I was also a part of Plan Niger’s organizing committee for the launch of the Because I am a Girl campaign.
Youth experience in the Youth Microfinance Project Isatu Veronica’s story • Joined the project to mobilize funds to pay for university tuition • Chairperson of her savings group – United Youth in Action, in Freetown • Community Volunteer in Freetown, providing training to peers on HIV/AIDS and gender equality • President of the Project’s Youth Advisory Board in Sierra Leone, representing 16,000+ youth project participants in the country
Youth Participation - The role of the Youth Advisory Board • Youth governance structure operating in each country, includes key management positions elected by existing VSL group members • Participate in the Project Steering Committee as a voice for all project youth at the management level • Undertakes sensitization drives and experience sharing visits to ensure retention of youth in the project • Conducts monitoring and provides reports on best practices, strengths, weaknesses and recommendations for project quality and sustainability
Youth Participation – The role of Community Volunteers • Highly motivated youth selected by the project to support scale-up and promote project efficiency • Trained and supervised by project staff • Responsible for identifying and forming new savings groups and rolling out training in the VSL methodology, life-skills and financial education to their peers • Ensure quality and sustainability of the project
Youth Success stories Youth are using the funds they Domestic violence decreasing due mobilized to return to school to gender trainings Creation of income generating Strengthening of community opportunities for youth solidarity
Opportunities for Rural Youth Given the lack of opportunities available to rural youth the project has: Provided access to financial services where they were not readily available Enabled youth to remain in rural settings rather than migrating to urban areas Enabled youth to return to school Promoted economic opportunities through collective community initiatives Malimba Youth Development Association
Looking Forward
Contact Information John Schiller Global Savings Group Advisor, Plan International john.schiller@plan-international.org Joanna Melymuk Program Manager, Plan Canada jmelymuk@plancanada.ca
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