Young people gather at a savings and loans group meeting

In the West Africa region, youth face the problem of unemployment and underemployment. Thus, Plan’s “Making Financial Services and Business Skills available for African children and youth: a Pilot Project” responded to the problem providing an appropriate access to financial services, the development of business skills and life skill training.

Plan’s project is changing youth lives. Youth learn how to save and manage money and to make small investments in income generating activities. They can benefit from short term loans available from the group fund, what allows them to start or expand small business projects.

Making a change

“Before the project, I used to spend the bulk of my time in gaming rooms and bars. I was smoking and I got involved in drugs. I used to lead a bad life,” said Soumana* from Freetown, capital of Sierra Leone. “I promised to never smoke and drink again. I think of starting a family and my future. The project has changed my life,” added Soumana.

Soumana was lucky to be found by a savings and loans group, whose members encouraged him to join and which helped him change his lifestyle. Soumana started to attend meetings and through interaction with other members learned important life lessons that helped him change negative behaviours.

“Thanks to the project and to the money borrowed from the group, not only I am saving money, but I have also changed my behaviour: I abandoned bad language and stopped going out. I buy and resell small items of jewelry and make profit. I am independent,” said Soumana.

It was noticed that as people drop the entertainments, they start to care for their appearance and language more and look hopefully towards the future. Some even think about creating a family.

Youth Microfinance Project

Due to the success of the first phase, the project has moved to a second phase called the “Youth Microfinance Project” which started in January 2010 and runs for 4 years. This project currently works with 70,000 youth in the 3 piloted countries and continues to boost youth potential to encourage them to take loans and start their own business.

Savings and Loans groups allow more people to raise funds and invest their money for the future. The first phase of the project, ran from 2007 to October 2009, had organized 3,093 children and youth, aged 15 to 24, into functioning Village Savings and Loan Associations (VSL) and gave training in business skills to 1,077 VSL association members of 3,000 originally proposed.

Read more about Plan's work in Sierra Leone.

* Name changed for child protection reasons