I am thinking of a model that tries to solve Youth unemployment.
It's called Youth Inclusive Entrepreneurial Program.
It's a fund.
According to the 2015/2016 BASIC LABOUR FORCE REPORT, released in March 2018, it's estimated that 1.22 million Kenyans aged 15-34 are unemployed. This makes 11.4% of 10.7 million Kenyans aged 15-34 who are part of the Labour Force. But this is just the standard unemployment i.e it represents people who are actively looking for jobs. The same study shows that 85% of unemployed Kenyans are below 35 years.
United Nations Development Programme placed Kenya's Youth unemployment rate at 26.2% in 2017 for the ages between 15-24.
How Does it Work?
In Kenya, 98% of the Youth of 20-35 years own phones and/or Mpesa accounts. Here they transact in a number of ways. More often they have some little remaining as Mpesa or cash balances. These small balances, when they lack what to do are either changed into airtime and/or sent to betting companiess. What if we placed interest on these small balances?
I have come up with clusters, savings target for the different saving models.
KES 16,500. Savings of upto KES 16,500 from the 12th month of your first deposit attracts a monthly payment of 4500 from the 15th month of your first deposit, for 14 months.
Any balances (over payments get refunded).
KES 23,800. Savings of upto KES 23,800 from the 12th month of your first deposit attracts a monthly payment of 6500 from the 15th month of your first deposit for 22 months.
Any balances to be refunded.
KES 37,000. Savings of upto KES 37,000 from the 12th month of your first deposit attracts monthly payments of 10,000 from the 15th month of your first deposit 26 months.
Any balances will be refunded.
KES 55,000. Savings of upto KES 55,000 from the 12th month of your first deposit attracts a monthly payment of upto KES 15,000 from the 16th month of your first deposit for 33 months.
Any balances will be refunded.
These clusters, simply means saving as little as KES 45, KES 65, KES 100 AND KES 150 daily, respectively. For 12 months.
Accounts that do not meet the threshold savings target ( KES 16,500) do not qualify for any monthly payments but their balances at the end of 12th month from first deposit attract interest of 30%.
Accounts that plough back upto 35% of their total monthly payments qualify for monthly payments above the cluster they qualified for previously, for 48 months.
Individuals and groups have total control over their savings, to withdraw and/or transfer.
The target of Youth Inclusive Entrepreneurial Program is
(a) The youth who is working so hard to save something.
(b) The youth who wants to take a challenge in saving
(c) The youth who has aspirations for the future, and wants to take care of them.
(d) The youth group that is struggling to raise funds for it's amazing life-changing project
(e) The youth who has a problem in finding a youth group that shares in their ideas/skills/creativity or innovativeness
(f) The youth who has challenges in investing
(g) Youth groups/Individuals living with disabilities
Youth Inclusive Entrepreneurial Program seeks to promote;
-Youth groups by giving interest free loans for projects in Tech and Agriculture
-It also seeks to become an interaction platform for idea and experience sharing between individual and Youth group, individual and individual, Youth group and Youth group. This brings healthy competition.
-It will also form a basis of information sharing, of opportunities for jobs and skill development.
-Loans at the lowest interest rates are also availed to individuals who plough back more than 40% of their total monthly payments.
-Individual accounts can be able to kick-start their friends through account to account transfer on our App.
-Promoting and encouraging youth ideas and investing in them
Youth Inclusive Entrepreneurial Program is a financial institution.
It seeks to invest these funds in profitable ventures in the different sectors of the economy being;
Oil and Gas
Telecommunication and Tech
Recreation and Entertainment
Transport and Infrastructure
Health Care and Nutrition
Agriculture and Agribusiness
Banking and Insurance
Stocks and Bonds
Advertising and Marketing
-Partnering with local banks and money transfer institutions e.g Mpesa
-Working exclusively with the youth of 20-35 years by ensuring 95% inclusivity in jobs and job opportunities
-Giving interest free loans to fund group projects in tech and agriculture
- Giving loans to individuals and groups at the lowest interest rate
-Promoting groups of persons with disabilities
-Awarding individual accounts that kickstart group accounts of people with disabilities
We intend to invest in opportunities that demand youth skills and qualifications, ideas and projects, lifestyle and everything youth.
Youth Inclusive Entrepreneurial Program also seeks to partner with local and international organizations to connect, inform and empower the African Youth.
Youth Inclusive Entrepreneurial Program App/Website will have the following on the menu
News and Newsletter
Investment opportunities for registered youth groups
Advertising and Events
Banks and Financial Institutions
Loans and Savings
On the App, users get to manage account (Transfer, Withdraw, Save, Kickstart other account/s). Users also get to track and assess their trajectory and challenge other accounts.
Having an account is very simple;
USSD (to be formed)
APP (to be created)
Paybill (to be formed)
Making first deposit makes one a legal member.
Connect with me on WhatsApp (+254 718 839715) or Text (+254 759 300839).
You can also write to me via email [email protected]
Donate now and let's solve unemployment.