Prime
PSFU in drive to promote non-collateralised credit for youth
Ms Ssali and Mr Deo Kateizi, the Pride Microfinance, shake hands after signing the partnership recently. Photo / Courtesy
What you need to know:
- Under the Lead Firm Structure programme, PSFU is targeting to create at least 300,000 jobs by 2025
Private Sector Foundation Uganda has partnered with Pride Microfinance in a move that seeks to create non-collateralised credit to youth.
The partnership, which is part of PSFU’s broader Enhancing the lead firm structure for youth employment programme under the support of Mastercard Foundation, seeks to address Uganda’s unemployment and poverty challenges.
Speaking at the signing of the partnership, Ms Damali Ssali, the PSFU chief of programmes and projects, said the partnership, signed under the Youth Inclusion programme, will tackle challenges related to access to finance by directly supporting youth through structured financial literacy training and access to unsecured loans.
“Through our works with the youth from all over the country, we have found that it is very difficult for them to access capital because most financial institutions require physical collateral in the form of a land title or motor vehicle logbooks, which most of them do not have. The interest rates are also high which leaves youth unable to access financial support,” she said, adding that through the partnership, youth will access capital without the need for collateral and receive financial literacy training.
PSFU under the Lead Firm Structure programme is seeking to enhance youth employment and entrepreneurship to solve the challenge of unemployment.
The programme has so far created more than 90,000 jobs for youth across Uganda, with a target of creating at least 300,000 jobs by 2025.
About 75 percent of Ugandans are below 30 years, majority of whom have no fixed assets or capital.
Youth unemployment in Uganda is estimated at 17 percent with higher rates for females - 20 percent – compared to 14 percent for males.
The state of Uganda population report 2018 reveals that 1.2 million youth between 15 and 29 years, who are out of school, are not engaged in any productive work.
