Working together with partner MFIs, the aim of our project called Young Entrepreneurs is to put in place financial services – loans and saving – and non-financial services -training, financial education, advice on company management, and follow-up and support -, that are adapted to the needs of young entrepreneurs wishing to start up a micro-enterprise or to expand it.
ADA provides support to young Burkinabe in their efforts to start up their professional activities
Despite the promise and potential they represent, young people find it particularly difficult to obtain funding since they are considered to be high risk clients. Indeed, this is why their lack of experience and of a guarantee is are often used by financial organisations as justification for their decision not to target young people as clients. In 2013, the unemployment rate amongst young Burkinabe, who account for 50% of the country’s population, was 25%.
ADA has established a support project within selected MFIs in order to facilitate the integration of young people in Africa into professional life. Accordingly, the “Young entrepreneurs” pilot project has been launched in the RCPB (Réseau des Caisses Populaires du Burkina Faso – Network of Credit Unions in Burkina Faso), a Burkinabe MFI.
Working in collaboration with this MFI, ADA has developed a project called “Créd’art”, which is comprised of three credit products and three savings products, as well as training, which has a particular focus on financial education and entrepreneurial spirt and which is provided to the young Burkinabe before they receive the funding.
These products are made available to young people who are able to fulfil the following specific criteria:
- Aged between 18 and 35,
- Have learnt a trade or have undertaken a vocational training course,
- Require funding in order to start their project,
- Have already started their professional activity and require equipment or additional working capital.
The young people in receipt of the funding are engaged, for the most part, in trades such as hairdressing, dress making, joinery, bricklaying, jewellery making, plumbing or electrical services.
The “Créd’art” pilot project has produced very positive results since its creation at the end of 2011. After five years of testing and evaluation, the RCPB has concluded that this is a good product which provides genuine added value to society, whilst generating financial returns. The figures speak for themselves: in 2015, a total of 760 new credits were accorded to young entrepreneurs in Burkina Faso, representing an overall volume of 425,683 EUR.
Since the Créd’art funding began to be distributed:
- 1,687 young people have been financed and supported in Burkina Faso for a total amount of one million EUR!
- 84% of the micro-enterprises financed in 2008-2009 are still active today.
- The Créd’art project has led to the creation of close to 2,300 jobs in total, including micro-entrepreneurs, apprentices and staff.
- Créd’art is proof of the fact that a correctly supervised credit product for young people can be profitable.