The Youth Finance Scheme (Microfinance)
The Youth Finance Scheme which was hatched in 2015, mitigates youth unemployment, enhances employability and promotes self-reliance, by inspiring and empowering young people to start up their own enterprises.
The Scheme provides tailored but guided loans and enables beneficiaries to lead productive and sustainable livelihoods.
Uganda’s population is growing so fast and the majority are young people aged between 18 - 35 years making up 75% of the total population.
Whereas huge populations could be so nice for development, it is disadvantageous to countries like Uganda where most of the young people are unemployed, often redundant and thus posing as a social threat to society.
The lack of a strong labor market to absorb youth, a mismatch of skills possessed by youth and those required by the available labor market, low levels of education evidenced by the lack of knowledge to start and run own enterprises, and the limited access to loan due to lack of collateral needed by the main financial institutions are some of the reasons behind youth unemployment in Uganda.
How does the Youth Financial Scheme work?
All participants meet quarterly for 3 hours to share business success stories, experiences, offer each other suitable support and learn new and best practices for the success of their businesses.
Mentors are facilitated with a small monthly token for transport and phone calls to make regular supervision on the progress of the business and offer the necessary support and guidance.
This is how your involvement transforms lives
All participants are given a grace period ranging from one month to seven months depending on the nature of the business ( this is on the presumption that after this period their business would have started making incomes to commence monthly repayments) and then a repayment period of one year.
Loan repayment is made in monthly installments. The loan carries an interest of just 2.5% per month! From the monthly paybacks, we enroll new participants to expand the scheme.
Youth opens up a bank account in a provided bank and the mentor is a second signatory to this account.
On completion of all these requirements, the loan money is then transferred into the participant's bank account. To withdrawal the loan money, participants draw a list of business needs to be purchased each time they find it fit and the mentor approves the requisition to make a withdrawal of the money. On the requisition, receipts of the purchased items are attached.
Youth write and present their business idea needs and Youth With A Vision provides an expert. On an individual basis, the expert discusses the presented business idea and develop it into a realistic business plan.
The discussion focuses on helping youth to widen their business orientation, re-design their initial business plans and get equipped with knowledge and skills to start and manage their businesses successfully alongside their business plan.
Youth who successfully completes the business planning process is provided with a mentor, then undergo a one day finance and project management course and a five days internship on the presented business plan.
During the internship, a participant is facilitated with transport, lunch and host costs (for those hosts that ask money) to host our internees.
My business is now expanding day by day and I have generated some profits which has enabled me to start another project of goat rearing and it supplements my shoe business. I started with one goat but now I have four goats. Everything is moving on well as I can help my family and also meet my personal needs.
Thank Youth with a vision for supporting me and changing my life.
Betty's Second hand shoes
Before joining the Scheme, life was hard for me I was jobless, I had an idea though but I had no capital to start my own job.
It was hard for me to pay for my children's school fees.
A friend who was already a beneficiary of the Youth Finance Scheme encouraged me to visit the office of Youth with A vision for help.
I went with a business idea of selling second shoes, and I was helped to turn this idea into a realistic business plan. They provided me with an internship where I learned how to manage the business. I received a start-up loan of UGX 1,000,000, and I started my business which sells second shoes and it is progressing well.
I got enough grace period which helped me to expand my capital.
Be part of our 2025 Goal.
By the year 2025, we want to enhance the employability of 10,000 disadvantaged youth across Greater Masaka region of Uganda, through financial literacy, business planning, and management skills, internship and micro-Loans But we can't do it without your support.
Please get involved.