Press Release
New media and old converge to provide free financial education in Africa
31 Jan 2012
- Print-outs and online video guide help consumer groups
deliver financial counselling in poor communities
- Simple approach is producing 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
advocates 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
Accompanying the impressive figures from the evaluation of the
project, the film explores the impact of the CI project 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."
-ends-
View the film
http://youtu.be/9DbJVjjp4F0
View the trailer
http://youtu.be/k_zFtzoH6so
Notes to Editors
[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
Press contacts
London: Luke Upchurch
lupchurch@consint.org
+44 20 7226 6663