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Ethiopia: United States (U.S.) Government Launches the Kefeta National Youth Saving and Credit Cooperatives

The United States Government through its Agency for International Development (USAID) launched the Kefeta National Youth Saving and Credit Cooperatives (SACCO) on September 5, a youth-led, youth-managed and youth-owned financial institution that will provide financial solutions friendly to young people and will support young entrepreneurs. The launch took place during the two-day Youth Development Learning Forum held September 5 and 6 at the Skylight Hotel.

Kefeta’s SACCO mobilizes savings and provides access to affordable credit to assist the economic well-being of young people with a creative mix of youth-tailored financial products. The National SACCO puts their member’s interest first and provides a level of service generally unavailable to young people at other financial institutions.

Knowledge of financial concepts like saving, investing, spending and borrowing is the foundation of financial literacy and contributes to a sense of financial security for all people, but most needed by young people as they seek careers and independence. The National Youth SACCO, with branches in 18 Ethiopian cities, has over 7,800 youth members who own more than 38,900 shares and 59,007,640 Birr (USD 531,800) in savings.

The Youth Development Learning Forum brought together key stakeholders, including government officials, youth representatives, and development experts to discuss challenges, opportunities, and best practices around youth access to finance in Ethiopia. The Forum featured panel discussions with successful young entrepreneurs and digital literacy influencers, sharing their experiences and insights.

USAID Mission Director Scott Hocklander, who gave the keynote address at the launch, said that with access to credit and finance, “there will no longer be the kind of hurdles that keep youth from participating in Ethiopia’s future.”

Distributed by APO Group on behalf of U.S. Embassy in Ethiopia.

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