The recent findings from the Finscope 2024 Youth Financial Inclusion Thematic Report present a hopeful yet complex picture of youth financial inclusion in Rwanda.

With financial inclusion among young people rising from 88% in 2020 to 94% in 2024, it is evident that significant strides have been made.

This growth is commendable and reflects the effectiveness of efforts from financial institutions, policymakers, and development partners to extend financial services to the country’s youth.

However, the progress also highlights enduring gaps that cannot be ignored.

One of the most notable findings is the decreasing disparity between rural and urban youth, with the financial inclusion gap narrowing from 10% in 2020 to a mere 1% in 2024.

This is a remarkable achievement and speaks to the impact of inclusive financial policies and services such as mobile money and SACCOs, which are critical in reaching underserved populations.

Similarly, the near-equal inclusion rates between male (95%) and female youth (94%) indicate progress toward gender parity in access to financial services.

Despite this progress, there are still hurdles. The report reveals that secondary students and unemployed youth face an exclusion rate of 14%, compared to the 100% inclusion rate among formally employed youth.

This underscores the need for targeted interventions for students and unemployed youth, who are less likely to be banked and face greater barriers in accessing financial services.

The financial system must develop more inclusive products for these vulnerable groups, especially in a country where youth unemployment remains high.

Moreover, while access to credit has improved, with 54% of youth having accessed credit, only 18% of that is from formal institutions.

This points to the ongoing challenge of securing collateral, which remains a significant barrier for young entrepreneurs.

Efforts such as portfolio guarantees of up to 70%, offered by institutions like Access to Finance Rwanda, are promising.

However, more needs to be done to streamline these processes and make them more accessible to a wider segment of the youth population.

The government and financial institutions must not only focus on financial inclusion but also on financial literacy and digital skills, as recommended in the report.

Equipping youth with the knowledge to navigate the financial landscape is critical for sustainable economic development.

Additionally, creating a one-stop service center for youth finance, as suggested by some industry leaders, would go a long way in reducing the fragmentation and inefficiencies young entrepreneurs face when seeking capital.

While the numbers in the report are encouraging, the work is far from over.

Rwanda must continue to build on these gains and ensure that every young person, regardless of employment status, gender, or location, can access the financial services they need to succeed.