9.30.09 Catholic Relief Services Rwanda Presentation


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9.30.09 Catholic Relief Services Rwanda Presentation

  1. 1. Global Youth Enterprise Conference, Focus on Finance September 30, 2009 CRS Rwanda Empowering Rwanda youth through savings-led microfinance
  2. 2. CRS Rwanda and OVC • There are 220,000 children orphaned by AIDS in Rwanda • A child is considered vulnerable if they have lost one of their parents • Rwanda has a unique challenge with child headed households (CHH)
  3. 3. CRS Rwanda and OVC • CRS has been operating in Rwanda since 1963 • Under the PEPHAR program, CRS supports OVC • CRS Rwanda provides a comprehensive package of services to over 3,151 OVC including micro-enterprise • Support is provided to vulnerable children and youth between the ages of 12-18, though some services extend to youth up to age 22
  4. 4. Rwanda: Youth Inclusive Financial Services Why Youth-Inclusive Financial Services? – Youth in Rwanda, especially OVC have little or no access to formal credit to start or expand micro-businesses. – Many child-headed households are responsible for the wellbeing of their siblings – Vulnerable youth are already engaged in building their livelihood and need financial resources to grow their businesses – OVC are responsible financial managers once they are taught basic financial literacy skills
  5. 5. Introducing Financial Services to OVC in Rwanda (the SILC Model) • In 2008, CRS Savings and Internal Lending Communities (SILC) methodology was introduced to the CRS OVC program •The program was designed to complement the financial needs of OVC participating in vocational training and apprenticeship program
  6. 6. SILC Methodology • Self-selected groups of no more than 25 individuals • Groups operate for a cycle of 8-12 months • Members save weekly and borrow from each other • After the end of the cycle a share-out takes place of savings and dividend • Groups are made up of both youth and adults to allow for mentoring and transfer of life skills • Some groups are made up primarily of youth which helps to strengthen their social networks • No special adaptations were made for OVC participating in SILC however a more structured financial literacy curriculum is being targeted for trainings
  7. 7. SILC Outcomes • OVC learn basic financial literacy and financial management skills • Through SILC, OVC have built trust among group members which has led to greater social cohesion • While OVC receive mentoring support from adults in their SILC groups, they are able to assist adult participants with complex bookkeeping • Improved access to financial services has resulted in: – 90% of participants being able to contribute to the national insurance scheme – Improvements in nutrition whereby 81% of participants are able to eat at least two meals, up from 60.9%. – Decrease in school drop-outs from 20.7% to 14.8%
  8. 8. Integrating SILC and Vocational training • OVC youth undertake vocational training courses where they learn practical skills for self- employment and gain basic financial literacy skills through participation in SILC • Formal apprenticeship opportunities follow the vocational training • CRS provides start-up kits, business skills training and basic accounting • Costs: – SILC alone: $50.00 – SILC with integrated vocational training: $318.00
  9. 9. Targeting and Delivery Channels • CRS and Caritas Rwanda invests in large-scale community awareness events to target youths and caretakers • Once the youth show interest and are ready to self-select into groups, CRS provides training on the SILC
  10. 10. The Result • 23% of the current 27,233 SILC group are OVC participants • The majority of participating OVC are child heads of households and OVC enrolled in vocational training • Repayment rate for all other SILC groups was 99.9%
  11. 11. Monitoring and evaluation considerations for youth- inclusive financial services • CRS has developed an OVC Wellbeing Tool (OWT) • The OWT provides insight on the holistic “wellbeing” of adolescent children • The OWT is a self assessing tool from the child’s vantage point • It is used for monitoring change in the wellbeing of a child over a period of time • Another combined M&E tool to help understand the impact of SILC on participating OVC and their caregivers is currently being developed and will be tested in early 2010. • All tools are shareable!
  12. 12. Murakoze Cyane! Thank You!