How GOAL is Promoting Youth Financial Security in Uganda

The Importance of Youth Savings Groups  

Village Savings & Loans Associations (VSLA) serve as a lifeline for communities with limited access to formal banking services. These groups meet on a weekly or monthly basis to deposit their savings. When emergencies or unforeseen circumstances arise, members can request loans. This builds financial acumen and independence in vulnerable communities. It also promotes youth financial security.  

Christine is the founder of her local youth savings group. Initially, the majority of members were secondary school students who were saving money to pay for their tuition fees. Each member of the group saved UGX 500 (approx. $0.13) per week. Members could take out small loans at an affordable interest rate. Most of these loans were used to purchase food or school supplies.  

Changing Youth Mindsets 

A representative from GOAL’s Markets for Youth programme approached Christine’s group and connected them with Kabarole Research and Resource Center (KRC), a Uganda-based civil society organisation dedicated to youth advocacy and mindset change. KRC offered them training on business management and group dynamics. 

In partnership with Mastercard Foundation, the Markets for Youth programme facilitates positive relationships between youth groups and private sector businesses, formal financial institutions, and civil society organisations in Uganda. In return, the youth gain business and financial knowledge, vocational skills, and access to input and output markets. 

The training changed the group’s mindset. Instead of simply saving money, the group decided that they wanted to earn money through a sustainable business entity.  

Overcoming Adversity 

Initially, the group was interested in commercial agriculture. This is when the group adopted their new name: Ihani Lower Youth Farmers Agro-Business Group. However, a very limited number of young people in Uganda own agricultural land. Gaining access to this land is a persistent challenge for young, aspiring farmers.  

Christine and the other group members were determined not to give up, so they decided to venture into the coffee business instead. In August of 2023, four of the group members decided to take a leap of faith and each invested UGX 10,000 (approx. €2.45) into the budding business. This initial investment generated UGX 37,600 (approx. €9.20) in profits. 

With a renewed sense of optimism, the group reinvested UGX 170,000 (approx. €41.65) in February of this year. So far, the group has earned UGX 200,000 (approx. €49) and expects to earn more than UGX 300,000 (approx. €73.50), which would generate a profit of over UGX 150,000 (approx. €36.75). 

Youth Financial Security  

“I’m glad that we have started making some money, unlike before where we were simply saving with no goal,” Christine said, smiling. “I feel good about where we are today, and I believe that the future is bright because we are now business oriented.”  

Today, the group is experimenting with value addition on a small scale. Members are locally roasting and grinding coffee, to develop a unique flavour and aroma. The group then packs small portions of this specialty coffee and distributes samples to grocery stores.  

Each package of coffee is sold for UGX 1,000 (approx. €0.25). The group is looking forward to developing their own branding and experimenting with bulk-buying coffee on a larger scale. The Markets for Youth Programme is monitoring their progress and providing technical support to the group as required.  

“Hard work and persistence are the only way,” Christine insists. “There are no short cuts!” 

About Markets for Youth 

In partnership with the MasterCard Foundation, GOAL is promoting youth financial security in Uganda via the Markets for Youth programme. Over the course of five years, the programme will help 300,000 young Ugandans access dignified and fulfilling work – including 70,000 women and 30,000 refugees.  

The programme works through private sector actors, including financial institutions like banks, input and output market actors, ICT solution providers, business development service providers, and formal and informal training providers and government institutions, to achieve the following outcomes: 

• Improved access and utilisation of financial services and products. 

• Improve access and utilisation of skills training information. 

• Improve access and utilisation of inputs and output markets. 

• Amplify youth voices and engagement. 

Today, over 261,000 Markets for Youth participants have secured dignified and fulfilling work, 53% of whom are women.

Learn more about the Markets for Youth programme.