Free Financial Education in Africa, New Media & Old Converge

• 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 youtube.

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.”

View the film

http://youtu.be/9DbJVjjp4F0

View the trailer

http://youtu.be/k_zFtzoH6so

Notes
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[1] Consumers International (CI) is the world federation of consumer groups that, working together with its members, serves as the only independent and authoritative global voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international movement to help protect and empower consumers everywhere.

CI is a not-for-profit company limited by guarantee and registered in the UK (company no. 4337865). We are also a registered UK charity (no. 1122155).

[2] Against a baseline survey conducted within Nairobi’s Korogocho slum; interviews with 250 people who have received FE through the project show a 39% rise in those who say they are saving; a 125% rise in the number of people sticking to budgets; and a 50% fall in those admitting to sometimes skipping loan repayments. Further details and data: http://bit.ly/wuwviw

[3] Financial Education Counselling: Counsellor’s Handbook (3.6MB pdf): http://bit.ly/yxKba0

[4] The creation of the handbook and the pilot stage of the project was supported by the Financial Education Fund (FEF). FEF is funded by the UK Department for International Development (DfID).

[5] Microfinance Opportunities is an NGO that develops ideas and solutions that help the financial community better serve the low-income consumer. http://microfinanceopportunities.org/

[6] Know your money: how to provide financial education in Africa: http://youtu.be/9DbJVjjp4F0

ENDS

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