Financial services and skills

It is imperative for adolescent girls of the 13-15 age cohort to have reliable means of saving and borrowing. Access to financial services - savings, credit, and insurance - is of particular importance for

adolescent girls, allowing them to support family members; cover basic household needs such as food and clothing; purchase personal supplies; support business costs once girls have graduated from their vocation training programmes; pay for national health insurance; and save for the future.86 However, our research suggests that girls save much less than boys, due in large part to societal expectations of ‘good  girls’  handing  over  money  to  their  families,  rather  than  saving  for  themselves.87

85 http://www.hanga.biz/brec 86 CRS (2011). 87

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The formal barriers for adolescents to access financial institutions – having to be 18 years of age to join an MFI or bank, and the high savings requirements for SACCOs - have created an opportunity for the private sector to intervene. Village Savings and Loan Associations (VSLAs) are tremendously popular

in Rwanda and, according to CARE, can be tailored to meet the needs of the 13-15 age cohort.

Aside from setting up VSLAs, CARE also provides them with intensive training on governance and

money management, enabling them to become self-supporting. Programme participants would have a

safe place to save the profits of their enterprise, and to borrow for personal needs, livelihood expansion, or to meet the costs of their education fees. VSLA meetings can also be utilised as a platform for building other capabilities, for example around Sexual and Reproductive Health and Rights, Sexual and Gender- based Violence, vocational skills, financial literacy, and linkage to financial institutions. Our research re- enforces the importance of safe spaces for girls to build social capital, self-confidence, and lesson-learn from each other. Caritas and Catholic Relief Services (CRS) together   run   a   number   of   “integrated   development  projects”  that  always  include  the  VSLA  methodology.  Further  discussions  with  these  two   organisations during detailed design might also be beneficial.

The VSLA approach is not a silver bullet however, and there are some necessary caveats to the VSLA approach. VSLAs require significant training and support to be sustainable in the long-term. In addition,

VSLAs often do not reach the most vulnerable households, as there are minimal savings requirements that the poorest are often unable to meet. Lastly, the weekly savings requirement often deter the most vulnerable from joining VSLAs - therefore, a cash transfer component (which would help girls meet their savings requirements, amongst other benefits) should be seriously considered.

Unions des COOPECs UMUTANGUHA (UCU)88 have also expressed interest in partnering with Girl Hub Rwanda to provide financial literacy training and savings products for young girls. Given that

commercial banks are more sustainable than VSLAs, a partnership with UCU should be explored in detailed design. Given the age barrier for most adolescents to open up savings accounts, UCU designed a   ‘commitment   savings’   product   specifically   for   those aged 12 – 24 years as a part of the UNCDF YouthStart Programme. Account holders must save a constant amount for at least 6 months, upon which they can borrow four times their savings amount.

Parliament des Jeunes Rwandaises (PAJER) Savings and Entrepreneurship for Out-of-School Girls scheme enables girls aged 16-21 to participate in VSLAs, with loans designated for entrepreneurial purposes. While the PAJER scheme is not currently tailored for work with younger adolescent girls,

tailoring services to this age cohort could be further explored. PAJER is partnering with PLAN International, which demonstrates their ability to work in collaboration with international organisations.

Duterimbere MFI also noted that they offer products that could be adapted for girls, such as their

group loans products aimed at clients without collateral. However, given that this product has not been designed or tested with adolescent girls, and that group lending typically excludes those that lack existing enterprises and lucrative business ideas, this partnership is not recommended for the programme. Adolescent girls require greater flexibility and financial education that group lending

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The below table presents a range of potential financial service partnerships with their associated risks and benefits. It is recommended that partnerships with shaded programmes be explored further.

Table 5: Summary of potential financial service partners

Programme Summary Risks Benefits

CARE’s  VSLA   approach

Weekly savings commitment. As the pool of savings grows, the group begins to advance internal loans to members who request them, which are paid back with interest, thus growing the pool further. Members also pay into a “social   fund,”   effectively   a   micro-insurance scheme for members who encounter financial shocks. At the end of the cycle, the savings pool is shared out between the members, and typically invested in significant household assets such as livestock, tools or improvements to housing. After one or two cycles, many groups decide to link with formal financial institutions. CARE provides VSLs with intensive training on governance and money management, enabling them to become self- supporting.

VSLAs are risky – potentially unsustainable in the long run. Without a cash transfer component, weekly saving in the village bank is difficult.

Eager and ready to tailor

programme to 13-15 year old girls; safe space for girls to meet weekly

UCU A  ‘commitment  savings’  product  specifically  for   those ages 12 – 24 years as a part of the UNCDF YouthStart Programme. Account holders must save a constant amount for at least 6 months, upon which they can borrow four times their savings amount. How are adolescent girls catered for specifically in this programme; no safe space where girls meet

Potentially more sustainable than a VSLA

PAJER A group of up to 30 youth, aged 16 to 21, who join the group by buying small shares for an agreed amount. At each meeting, the teens can buy up to 5 more shares, further investing in the group's savings. Each member has a "Pass" book, which is stamped at each meeting to track shares purchased. Members also give a small amount at each meeting to the "social fund". This fund is used when a member of the group has sudden unexpected expenses, like medical bills, or special food for a family health issue or other emergency.

Not tailored to the 13-15 age group; VSLs are often not sustainable in the long-run Focus on entre- preneurship, safe spaces, and experience collaborating with international organisations (PLAN) Duterim- bere

Offers products that could be adapted for girls, such as their group loans products aimed at

No experience working with

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group lending can be damaging for young girls