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Increasing access to finance for youth

Active

Since 2010, UNCDF has been actively working to increase youth financial inclusion by supporting the development of affordable, relevant and accessible financial products for youth coupled with complementary non-financial services in LDCs. UNCDF tested its approach by launching YouthStart Pilot Programme, which more than tripled the original target of providing A2F to 200,000 youth. UNCDF is now expanding this approach to LDC’s in Africa and Asia with the objective to increase the number of youth (in particular young woman, youth living in rural areas and out-of-school) engaged in entrepreneurship, decent employment, school, or further education and training.

Entity

United Nations system entity
  • Technical assistance, expertise and implementation
  • Policy, advocacy and convening power
  • Financial and/or in-kind contribution

Sustainable Development Goals & targets

  • 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
  • 8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training
  • 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

Themes

  • Digital skills for youth
  • Transitions to the formal economy
  • Youth entrepreneurship and self-employment

Achievement At Glance

To date, UNCDF has partnered with three financial institutions and one mobile money operator to develop financial services for youth. Each of these institutions has: received training in conducting market research for youth financial services using human-centred design approaches resulting in the development of a research report; developed four savings products for youth; and opened accounts for close to 400 youth. In addition to this, UNCDF has supported the development of a financial education app for each of these partners to be deployed before the end of the year.

UNCDF has focused its efforts in building the capacity of the partners to enable them to develop products for youth.

Description

UNCDF will provide integrated financial (e.g. savings, loans, insurance, payments, etc.) and non-financial services (e.g. financial education on savings or debt management) to at least 800,000 youth in LDCs, to either secure decent work or start/expand their own business. It will do this through the implementation of the following 4 strategies: 1. Improve coordinated action of youth serving organizations, NGOs working with youth and for youth, and FSPs to design and deliver financial and non-financial products and services for youth in ways that complement each other; 2. Promote a bundle of services that will impact youth in a direct and indirect manner; 3. Promote a bundle of services that motivate youth to seize economic opportunities in sectors with the greatest potential (e.g. agriculture, house hold enterprises, digital jobs); 4. Partner with others to improve policies and regulations to facilitate youth transitions to economic independence. In parallel, UNCDF is also piloting alternative and innovative approaches with governments and local partners that could be crucial to promote youth employment and inclusion in LDCs.

http://www.uncdf.org/youthstart

Deliverables and links to SDG targets

  • 800000
    Young people supported through entrepreneurship training, advisory services, access to markets or access to finance
    8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
    Increased access to integrated financial and nonfinancial services for 800k youth; complementary integrated services for at least 400k youth
    BY:
    Dec 2022
Afghanistan
Angola
Burundi
Benin
Burkina Faso
Bangladesh
Bhutan
Central African Republic
Côte d'Ivoire
Democratic Republic of the Congo
Republic of the Congo
Comoros
Djibouti
Eritrea
Ethiopia
Guinea
Gambia (Republic of The)
Guinea-Bissau
Equatorial Guinea
Cambodia
Kiribati
Lao People's Democratic Republic
Liberia
Lesotho
Madagascar
Malta
Myanmar
Mozambique
Mauritania
Malawi
Niger
Nepal
Rwanda
Senegal
Solomon Islands
Sierra Leone
Romania
South Sudan
Sao Tome and Principe
Chad
Tonga
Timor-Leste
Tuvalu
United Republic of Tanzania
Rwanda
Vanuatu
Namibia

Start

27-Oct-2017

End

31-Dec-2022

390

young people to benefit directly from this commitment

Target: 15-19, 20-24, 25-29, 30-35

Primarily:
  • Young people in rural areas
  • Young women
  • Low-income individuals
  • Young people with low levels of education and/or drop-outs

Gallery

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