It all started as a joke. Something to do just to ‘test the waters’, without thinking too much into it. However, a group of young graduates has, five months after the idea was mooted, already set up a promising savings group called Looking into Future Saving Fund (LFSF). Damascene Munyetwari, the fund project co-ordinator, says the idea was an attempt to ‘dare’ save after the group members attended the annual national civic education (itorero) programme last year.

"We started the savings mobilisation among fellow students, but we did not believe we could really accomplish much,” Munyetwari says

He adds that during the national civic education, there were presentations on the role of young people in nation building which "struck a code”. "Being part of the national youth committee, we realised that mobilising savings among the youth could be crucial to achieving national objectives, including promotion of a savings culture to improve opportunities for Rwandans and their lives,” he says.

He says when they started approaching other students who had attended the forum, many embraced the idea. Munyetwari adds, "The level of youth unemployment is high so I thought we could only solve this challenge if we came together to mobilise savings among ourselves that they would invest in the future.”

Five months, 150 members

Innocent Kome, a member of the fund’s mobilisation committee, says the group has already recorded nearly 150 members and set up an office, just five months down the road. Located in Nyarugunga Sector, Kicukiro District, the office is run by a group of 15 youth who are passionate about improving the welfare of young people. The committee oversees all the operations of the fund. Kome says the nearly members have been able to raise Rwf1.7 million in savings.

"This a lot of money if you consider how much members contribute on a daily or monthly basis. We started with a few people, who couldn’t even save Rwf10,000 a month each. However, all this has changed and some members can contribute Rwf20,000 or even Rwf30,000,” says Kome, who is the fund’s business assessment head. According to fund’s regulations, a member can save a minimum of a coin of Rwf100 per day, and currently only a few members save Rwf30,000 per month.

"As young people we still have a mindset that saving Rwf100 per day is sort of shameful, giving one no chance to start up a business. Many youth look at huge projects that require millions to start, but the truth is saving as small as Rwf200 per day can help you start a small income-generating activity. For me, I save Rwf200 daily,” says Patrick Kayiranga, one of the fund members. Kayiranga says the fund is trying to change mindset among young people, who still think that small savings cannot help one start-up a business.

"I used to think that way, too but I have since changed. That’s why I am part of this initiative and, like the biblical Paul, I know I can bring about change among fellow youth,” he points out.

Future plans

According to Kome, the fund targets to recruit at least 1,500 members, who can contribute up to Rwf108 million per month by 2017.

"With this amount of money, we can start up an income-generating project. We will all the platforms to mobilise and reach out to different people in all communities…We are also teaching people how to prioritise their options. For instance, instead of buying an airtime of Rwf500, you could buy that Rwf100 and save the balance,” he explains that group’s approach.

Munyetwari argues that once one has a good amount of savings, banks can always give them loans to kick-start business ventures. "So, if we manage to raise Rwf108 million by the end of next year, banks will be ready to advance us a loan, 18 times that amount. This is enough money start up a silk project and factory, which members have already agreed on,” he adds.

Handling challenges

Like in any other field, the group’s committee faces challenges while doing their mobilisation and sensitisation work for the fund, including costs incurred on day-to-day activities. They also lack enough office space to accommodate all the staff at the small office the hired in Kicukiro.

"However, the challenge is dealing with those who have not understood the importance of saving and convincing youth to embrace initiatives like ours to save a coin a time,” says Kome. He adds that as volunteers, they invest a lot of time and, sometimes, money in running the fund’s activities. Despite all the encumbrances, we have never thought of quitting, and are always working to recruit more members and encourage fellow youth to save either with us or any other savings group in their locality.

"This way, Young Rwandans will be able to overcome challenges of unemployment and lack of start-up capital, for those that want to set up businesses and create jobs for other youth,” Kome points out.

As it is, the sky seems to be the limit for the rookie savers.