Financial Literacy
A better future with financial education.
Financial security is a concern for most people in the world. “How can I make money to support myself and my family, how much can I spend every month, and how can I make sure that there is enough money in case of an emergency such as the sudden illness of a family member?” This is where financial education has answers. It helps people to make sound financial decisions and learn how to generate, save, invest, and spend money – both at home and in their business.
This where German Sparkassenstiftung Eastern Africa (DSIK) has a lot of expertise being the developmental wing of the German Sparkassen Finanzgruppe (Savings Bank Finance Group) that first introduced financial education with the World Savings Day in 1924.
Today financial education is one of the main focus areas of DSIK in Eastern Africa. The target groups vary from country to country, but usually include adults as well as children and adolescents. A special emphasis is put on the support of particularly vulnerable groups such as women, young entrepreneurs, refugees and the population of rural areas.
Financial education must start early
DSIK supports beneficiaries in developing the skills required to manage their personal and business finances and be better prepared for handling financial uncertainty. Our approach focusses on introducing financial education to children as early as primary school by teaching them how to budget their money, and how to save it for future personal projects. This is a very important life skill.
DSIK, together with its partner organizations, is currently implementing financial education in schools in Uganda, having previously established programs in Burundi, Rwanda and Tanzania. Plans are underway to initiate similar efforts in Kenya to further expand the impact of financial education.
Burundi
DSIK Burundi in its former partnership with Réseau des Institutions de Microfinance (RIM), which is the Burundian association of Microfinance Institutions (MFIs), have joined forces since 2012 to strengthen the professionalism of the Burundian microfinance sector. Together, RIM and DSIK have built the capacity of microentrepreneurs and farmers who are clients of the MFIs, through various training that promote financial literacy.
The rural savings mobilisation campaigns were organised every year at the time of the big harvest in May, by the MFIs to sensitise farmers to save money during the period of crop sales as they need it during the growing season.
Financial education clubs have been introduced in basic schools, International Savings Day was celebrated every year, and the so-called Sangwe Cooperatives were trained in financial education.
Additionally, a website “www.menya.bi” was set up as an online platform offering comprehensive information about the microfinance sector in Burundi. The platform also serves as a resource for financial education, catering to both existing and potential clients of MFIs, enhancing their understanding and engagement with these services. The partnership was successfully concluded in September 2024, with all activities being handed over to RIM.
Within the framework of the current project SESA - Isoko Irama, DSIK manages subsidized loan funds provided by AVSI. DSIK pairs the funding with comprehensive business and financial education for the beneficiaries. By equipping communities with the knowledge and tools needed to manage these resources effectively, DSIK empowers the beneficiaries to make informed financial decisions, fostering sustainable development.
Kenya
Through our partnership with the Association of Microfinance Institutions -Kenya (AMFI), we are collaborating with Caritas Microfinance Bank, to introduce financial education in schools across Kenya. After developing and structuring a comprehensive syllabus, we selected five schools in Nairobi, with the support of Caritas, to launch the pilot phase of the program. As part of this initiative, we have established savings clubs within the schools.
Additionally, in partnership with AMFI, we also launched the Wanji Game, a digital financial literacy tool. This voice-controlled, interactive audio game provided users with prerecorded scenarios, allowing them to make decisions using their phone keypad. Designed for basic mobile phones, it was accessible to individuals who were illiterate or lacked internet access. The game enhanced digital and financial literacy by delivering engaging, localized audio stories that helped players make informed decisions about spending, borrowing, credit, savings and investments. During its pilot phase, it surpassed its target, reaching 4,619 microfinance clients instead of the expected 3,000. Due to its positive reception, discussions were held on expanding its reach and incorporating additional learning content.
World Savings Day is also celebrated annually as part of these efforts to instill a culture of savings among the population, fostering financial discipline and awareness.
Rwanda
DSIK jointly with its partner the Rwandan Institute for Cooperatives, Entrepreneurship and Microfinance (RICEM) are currently implementing a Digital Financial Education program to address the gaps in financial literacy among Rwanda’s population, particularly in rural and cooperative-based communities. The program focuses on equipping individuals with the knowledge, skills, and confidence to engage effectively with digital financial products and services.
Additionally, various trainings on financial education for adults were conducted with RICEM, the Rwanda Cooperative Agency (RCA), and other stakeholders, reaching various beneficiaries. A Financial Education program was also implemented in schools previously.
World Savings Day is also celebrated annually in Rwanda, emphasizing financial literacy and fostering a culture of saving among the population.
DSIK in its former partnership with the Association of Microfinance Institutions in Rwanda (AMIR) also developed an adult product named Tinyuka Wigire Munyarwandakazi for women from 18 to 65 years of age who have a challenge of accessing finance (loans) without collateral like physical assets. This product helps women to access loans without necessarily having to present collateral but instead use their accumulated micro savings as collateral and be able to access 70% of needed loan amount at a very low interest rate.
Beyond financial access, beneficiaries received training in savings, budgeting, debt management, and loan handling, equipping them with essential financial literacy skills. By 2020, Tinyuka Wigire Munyarwandazi had reached 5,800 women in 30 institutions, 2000 had already taken loans of about 340 million Rwandans Francs.
Tanzania
DSIK in Tanzania has successfully implemented financial education programs in schools through the students' savings club approach in partnership with various stakeholders. In Karagwe District, about 3,500 students were taught weekly financial education through these clubs. The initiative expanded to Mwanza in 2019, where over 7,800 students from both private and government schools joined savings clubs, gaining essential financial knowledge and fostering a culture of savings. The program is projected for nationwide expansion.
To support these efforts, DSIK developed Financial Education Books that have been distributed across schools. World Savings Day is also celebrated annually, engaging students, teachers, and community members in financial education activities, further fostering awareness and participation in financial literacy initiatives.
DSIK Tanzania has also extended financial literacy training to adults, with a particular focus on SACCOS members. By 2024, 864 SACCOS members had been trained, with plans for further training through Bank of Tanzania-certified freelancers.
We are also implementing a Digital Financial Education program designed to empower women and youth in rural Tanzania by providing accessible and practical financial education through digital channels. Using both podcast and radio formats, the initiative aims to increase outreach and impact by delivering engaging, relevant content to rural population.
Uganda
Recognizing the critical importance of financial literacy for long-term economic empowerment, DSIK partnered with the Uganda Cooperative Savings and Credit Union (UCSCU) and the Association of Microfinance Institutions in Uganda (AMFIU) to implement a comprehensive Financial Education (FE) Program in schools across the Central, Lango, and West Nile sub-regions of Uganda.
Our FE Program extends beyond just saving. We also incorporate activities such as:
- Celebrating the annual World Savings Day: Raising awareness about the importance of saving and promoting financial literacy through engaging events.
- Skilling Initiatives: Providing children with opportunities to learn income-generating skills like beading and craft making. This empowers them to earn money that can be put towards their savings goals, fostering a sense of entrepreneurship.
Financial Literacy through Business Games
A financial education approach very popular with adults and DSIK’s partner organizations are the Business Games. Depending on the characteristics of the target audience, the focus is either on saving (Savings Game), managing a micro business (Micro Business Game), managing a farming venture (Farmers Business Game) or building resilience in the face of climate change (Managing Climate Resilience Game). In the 2-day to 4-day simulation trainings, trainees acquire essential skills that help them identify problems and analyze correlations. “It’s a playful way to learn how to improve the success and sustainability of their enterprise”, says Edith Niyuhire, a Micro Business Game trainer from Burundi, and Mrs. Bernadette, one of the 1,700 Game participants in 2019 in Burundi, adds “The Micro Business Game helped me to master my business finances. Now I am able to receive loans to strengthen and expand my business.”
