By Bob Aston
Lack of financial services is one of
the key challenges faced by youths. This has significantly contributed to lack
of livelihood opportunities among youths.
The Fin4Ag Conference: revolutionising finance for agri-value
chains, which will
take place at the Kenya School of Monetary Studies in Nairobi from 14 – 18 July
2014 is set to provide an opportunity for deliberation on increasing access to
finance for young agro entrepreneurs: Innovation models and replication issues.
Discussions on the issue are set to
take place on 16th July at
Chui Hall during session [S39]. This session will discuss the development and sustained
replication of innovative models of youth inclusive agricultural finance
services, throughout the entire value chain.
Youth farmer tending to his crops |
The session will help to look at ways
of enhancing initiatives aimed at securing capital for young agro
entrepreneurs. The session will also cover key issues such as capacity building
on financial services, promotion of public-private pro-youth financial
services, and opportunities offered by ICTs.
Youths are particularly vulnerable to economic problems. They often do not have access to savings account, credit or insurance but in them also lies a large untapped opportunity that can help address unemployment which has remained one of the most daunting challenges in African, Caribbean and Pacific (ACP) countries. Lack of collateral has also been a big hindrance to young agro entrepreneurs as it has made it difficult for youths to obtain financing. The session will help youths to understand how to overcome such challenges.
Youths are particularly vulnerable to economic problems. They often do not have access to savings account, credit or insurance but in them also lies a large untapped opportunity that can help address unemployment which has remained one of the most daunting challenges in African, Caribbean and Pacific (ACP) countries. Lack of collateral has also been a big hindrance to young agro entrepreneurs as it has made it difficult for youths to obtain financing. The session will help youths to understand how to overcome such challenges.
Financial access would go a long way
towards bringing financial innovation to the youths but this has been a problem
mainly due to restrictions in the legal and regulatory environment, inappropriate
and inaccessible financial products offered by financial institutions and poor
financial capabilities of the youth.
Need to increase the financial
capability of youths is of utmost importance as financial institutions rarely
treat them as “clients” but rather as “beneficiaries.”. Most financial
institutions also prefer to finance businesses with higher and immediate
profitability.
Capacity building on financial
services which is one of the issues that will be discussed will help in viewing
youths as an opportunity rather than risk. It is clear that there is need of
growing interest in youth financial services as a means of financial inclusion.
Inclusive agricultural finance
services, throughout the entire value chain will help to strengthen the credit
worthiness of youths hence leading to improved financial capability.
It will be interesting to hear from
the winner of
ICT4Ag Hackathon on
how to share innovation and find market. Mr. Opio Obwangamoi David, CEO and the
Founder of Ensibuuko Company Limited is set to be among the main speakers
during the session.
Many young innovators who dream of
contributing to agricultural and rural development certainly need to attend the
session to learn how Mr. Opio has managed to provide an ultimate solution to
small scale holder rural farmers.
The session will help young agro
entrepreneurs to learn how to take greatest advantage of the financial services
available. Promotion of public-private pro-youth financial services will
certainly help agro entrepreneurs to access appropriate financial products.
According to a report released by
World Bank in January 2014 titled Youth
Employment in Sub- Saharan Africa, eleven million youths are expected to enter Africa’s labour
market every year for the next decade. The report argues that scaling up
support to access opportunities when they arise is essential in empowering the
youth.
If you will be attending the Fin4Ag
Conference, do not miss this youth session! Join the discussion in Room Chui on
Wednesday 16th July from 16:00 – 17:30. Live tweets will also be sent from the
session with the hashtags #Fin4Ag14 #S39.
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