New and old media help provide financial education in Africa
Consumers International press release
- Print-outs and online video guide help consumer groups deliver financial counselling in poor communities
- Simple approach is delivering remarkable results in East Africa
Consumers International (CI)[1] is pioneering free financial counselling for poor communities in East Africa with a mix of photocopied materials and YouT Image by Consumers International
Know Your Money
The initiative, which has helped set up financial education counselling services in slum and rural communities in Kenya and Tanzania, has already seen a 125 per cent rise in the number of people sticking to budgets and a 50 per cent fall in those skipping loan repayments[2].
The project is focused around a free-to-use financial counsellor’s handbook[3], designed to be printed-out and photocopied by both counsellors and community volunteers.
Supported by the UK Department for International Development (DfID)[4], and developed for CI by financial education experts Microfinance Opportunities[5], the handbook provides practical advice in a way that non-experts can understand and convey.
The approach seeks to embed financial education within the community by training counsellors from scratch. While these counsellors are by no means financial experts, the accessible design and structure of the handbook means that, with a little training, they are now providing free, impartial financial advice within rural and slum communities.
While the handbook is full of easy-to-understand sections on savings, budgeting and debt management, at 249 pages, it can appear daunting at first. So CI has produced a short film[6] explaining how to use the handbook effectively. Launched on youtube and promoted via CI’s 48 member organisations in Africa, the aim of the film is to convince other financial education advocates across the continent to get involved.
Luke Upchurch, Head of Communications at Consumers International:
“After seeing the success of the handbook in Kenya and Tanzania, we asked consumer groups around Africa to tell us what would be the most effective way of getting them involved in the project. They all liked the idea of a how-to guide on youtube, which is not surprising, as consumer organisations in Africa are very active on the internet”.
The human impact of financial education
To accompany the impressive figures from the evaluation of the project, the film explores the impact on individuals in Korogocho, a large slum community in Nairobi, Kenya.
Jane Kimaru, a Korogocho resident, explains how it has helped her manage her money. “The education has taught me I need to ask questions before I take a loan; it has removed fear from my heart… Now I can sit with my family and decide if the loan I take will be a benefit or not.”
Jacinta Wangechi, another resident, spoke of the sense of empowerment gained from the counselling. “I have learnt I have rights as a borrower. I won’t be oppressed again. Understanding the interest rates of different banks means I won’t burden my family with expensive loans.”
Luke Upchurch, from Consumers International: “People from slum communities like Jane and Jacinta, are often neglected as consumers of financial services. The big banks and financial providers have little concern for the rights of consumers in these deprived areas.
“But, as our film shows, managing personal finances and knowing how to engage with financial services are fundamental consumer rights that can play a major role in alleviating poverty and improving living standards.”
More reaction to CI’s financial education project
Alyna Wyatt, Financial Education Fund: “This project has taken financial education into the heart of the communities. It is building awareness about money management and, most importantly, sharing knowledge and skills so that vulnerable and often exploited populations can make informed decisions about the financial products and services they choose.”
Monique Cohen, Founder-President, Microfinance Opportunities (MFO): “MFO is excited by the success we've seen from this collaboration. Low income households are welcoming financial education, recognising its benefits and seeking financial education in-person from counsellors. The project is demonstrating that multimedia financial education, including video, can stimulate changes in financial behavior among low income households.”
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View the film
View the trailer
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