Uganda has one of the youngest populations and highest youth unemployment rates in the world, with over 78% of its population below the age of 30. Eight million of these youth are between the ages of 15-30.
To mitigate the economic ‘push’ factors of unemployment, OBs and OGs of Kagadi People’s Secondary School have developed a savings and credits scheme to help them create wealth using their own mobilized resources.
Prof. Frank Kabuye, from Makerere University Business School and also chairman of the association of OBs and OGs of Kagadi People’s Secondary School said youths’ mindset has been locked to an extent that they see saving as a threat to their money and that this has hindered their saving culture.
Kabuye said many people have started small and grown into big investors but only through savings.
Kabuye said they have started the model of savings as old students dubbed KAPOSA SACCO to ensure that everyone has been enrolled to save for their future.
Kabuye further said several control measures have been put in place to ensure that there is transparency and accountable leadership.
He said this will help the youth to access financial services with minimal interests to avoid money lenders who charge exorbitant interests.
The SACCO aims to reduce youth engagement in hazardous labor and to increase decent work opportunities for adult youth in Uganda.
Ponsiano Tumwesige, the Kagadi district Senior Commercial officer said the youth are challenged by financial constraints but also lack the saving culture and this has limited them from accessing financial services to develop themselves.
He said youth should have a feeling that saving is the key to development.
Ponsiano said the government is interested in seeing Ugandans work together in groups and this makes it easy for it to support them.
Lawrence Ssesanga, the Head Teacher Kagadi People’s SS said he is optimistic that the SACCO owned by old students will prosper given the level of exposure; training and experience they have in leadership and other fields.
He said the government is emphasizing the same and this will help them match in government standards.
This SACCO will help to explore the successes and challenges of the youth-led Savings and Investment Clubs and youth/adult saving models; understand how to effectively mobilize and retain youth in savings groups; explore the relationship between adolescent savings and engagement in hazardous labor; and explore how gender shaped youth participation in savings groups can work.
Recently, the same association donated an assortment of items to Kagadi district general hospital as a way of giving back to the community and showing love for health and saving lives.