Empowering Women and Youth-Owned Businesses Through Financial Literacy Initiatives

Africa is home to the world's youngest population, with more than 60 percent of its people under the age of 25. However, many of them face challenges in accessing decent employment opportunities, especially women and youth in the informal sector.?

According to the International Labour Organization (ILO), the youth unemployment rate in Africa was 19.8 percent in 2020, more than three times higher than the adult unemployment rate. Moreover, the youth underutilization rate, which measures the share of young people who are unemployed or willing to work but not actively seeking a job, was 37.9 percent. The situation was worse for young women, who had a youth underutilization rate of 45.2 percent, compared to 31.5 percent for young men.

One of the main barriers to youth and women employment in Africa is the lack of financial literacy, which is the ability to understand and manage one's personal finances effectively.?

Financial Literacy

In recent years, there has been a growing recognition of the importance of financial literacy in driving economic empowerment and growth, especially among women and youth-owned businesses.

Financial literacy is a crucial skill for entrepreneurs who want to start, grow and sustain their businesses. However, many women and youth in Africa lack access to financial education and services that can help them achieve their entrepreneurial goals. That is why Equity Group Foundation, in partnership with Mastercard Foundation and Equity Group, launched the Young Africa Works Kenya Program in 2019.

One of the key components of the program is the financial literacy training, which equips women and youth entrepreneurs with the knowledge and skills to manage their finances effectively.?

The training covers topics such as budgeting, saving, investing, debt management, taxation and financial reporting. The training also helps entrepreneurs to develop a business plan, identify market opportunities, conduct market research, set realistic goals and monitor their progress.

After completing the financial literacy training, women entrepreneurs are eligible to access funding from Equity Bank to support their business growth. The funding ranges from KShs 10,000 to KShs 5 million, according to the Young Africa Works program depending on the size and nature of the business. The funding is offered at affordable interest rates and flexible repayment terms. The funding also comes with additional benefits such as insurance cover, business advisory services and linkages to markets and networks.?

Young Africa Works Kenya Program

The Young Africa Works Kenya Program, a public-private partnership between the Mastercard Foundation, the private sector and the Government of Kenya is a five-year initiative that aims to support five million young Kenyans through micro, small and medium enterprises (MSMEs) across all sectors of the economy.?

The program targets women and youth MSME entrepreneurs who have the potential to scale up their businesses and generate employment opportunities for others. The program provides them with comprehensive support, including financial advice, mentorship, entrepreneurship training and access to financial and business development services.

The program has so far supported over 500,000 MSMEs through capacity building, extended loans valued at KShs 200 billion and created and preserved over 1.26 million jobs.?

The program has also contributed to the empowerment of women and youth entrepreneurs, who have increased their income levels, improved their living standards, and enhanced their social status.

1. Training and Capacity Building:?YAWK offers a range of training programs and workshops designed to enhance financial literacy skills. These programs cover various topics, from basic financial concepts to advanced financial planning.
2. Access to Financial Services:?YAWK, through Equity Group, facilitates access to financial services, including savings accounts and credit facilities, for women and youth-owned businesses. This fosters financial inclusion and helps entrepreneurs put their financial literacy into practice.
3. Mentorship and Networking:?YAWK connects young entrepreneurs and women-owned businesses with mentors and networks that can provide valuable insights and guidance on financial matters.
4. Promotion of Entrepreneurship:?YAWK's support goes beyond financial literacy to encourage entrepreneurship and innovation. It helps individuals translate their financial knowledge into actionable business strategies.

The Young Africa Works Kenya Program is a testament to the power of partnerships in advancing financial inclusion and economic development. By working together, Equity Group Foundation, Mastercard Foundation and Equity Group are transforming the lives of millions of women and youth entrepreneurs in Kenya and creating a more prosperous and inclusive society.