- 5 Apr 2016
- 8 Apr 2016
Zambia - Digital Saving Groups
Globally, the youth unemployment epidemic has increasingly become one of the most pressing international development issues. In Sub-Saharan Africa, the vulnerable employment rate is estimated at 77.4% in 2013, which is the highest rate worldwide. In Zambia, high numbers of youth face unemployment and poverty. About 71% of the youth live on less than $2 a day.
Zambia’s central statistical office indicates that two of every five urban youths and four of every five rural youths cannot find formal sector employment. Each year approximately 250,000 young people enter Zambia’s labour market with little or no hope of finding formal employment or starting their own enterprise.
Support by Plan
Plan promotes Youth Saving Groups as a transformative approach. It is participatory and empowering for youth; and it can therefore be seen as a platform and enabler of Youth Economic Empowerment and Digital Learning and Digital Skills.
Currently, youth saving groups are using the traditional way of saving, involving a cash box and three keyholders. However, with the evolvement in digitalization and opportunities that come with it, Plan wants to take the saving groups to the next level through collaboration with telecom providers in order to enable them to work with mobile money and an e-wallet. This will provide the youth groups with a modality for secure banking and the opportunity to build a credit history.
Access to internet
New technologies and access to internet can provide many more opportunities for the youth, their employment and businesses. One can think of conducting market research on the internet, information sharing and networking. E-banking or access to mobile money is a first step in bridging the digital divide.
An inception and mobilization phase
The proposed project consists of two phases: an inception and mobilization phase of six months to build on Plan’s previous experience of promoting mobile and e-banking to established saving groups. The second phase concerns the implementation of creating digital learning opportunities and income generating activities for the members of the (selected) saving groups. This proposal focuses on the inception phase.
With support from KP&T a study was carried out to understand how e-recoding functions. Based on the findings the project will be scaled up.
The targeted regions Mansa, Chibombo, Chadiza and Mazabuka have been prioritized by Plan based on the needs of youth, the opportunities and digital infrastructure and the experience of the Plan team and partners in these regions in youth employment.
Sponsors of the project
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