Efforts stepped up to boost financial literacy, inclusion

STAKEHOLDERS in the financial services sector have carried out several initiatives to boost financial literacy and inclusion in the country in view of the Global Money Week (GMW) 2024 and beyond.

The GMW ran from March 18 to 24 under the theme “Protect your money, secure your future”, emphasising on driving safe money management and highlighting the importance of adopting a responsible and informed approach to personal finances.

Outside the GMW, the initiatives are also in line with the National Financial Inclusion Strategy II (2022-2026), which seeks to empower Zimbabweans and facilitate financial capability of the underserved through high-quality financial knowledge and skills.

This, in turn, should influence consumer attitude, behaviour towards financial matters and facilitate informed financial decisions.

The 2022 FinScope Micro, Small and Medium Enterprises (MSME) Survey identified low levels of knowledge in four key areas of financial capabilities: managing money, planning, choosing products and using them, and accessing information.

Now, stakeholders and institutions from banking, insurance and capital markets are intensifying outreach programmes to boost financial literacy, especially among rural communities, where about close to 70 percent of the country’s population lives; secondary schools; and tertiary institutions.

In view of the GMW, institutions like Old Mutual, using its financial education programme On the Money, has been conducting workshops with Girls in STEM (Science, Technology, Engineering and Mathematics). The initiative targets girls in high schools and tertiary institutions who are studying STEM subjects.

“During the April Easter holidays, Old Mutual will be hosting online financial literacy bootcamp sessions, which is a programme that targets children in primary and high schools. The bootcamp seeks to instil financial literacy knowledge in children and youths, equipping them with essential skills like planning, saving, budgeting and investing,” said Old Mutual.

Outside the GMW, these initiatives are expected to eventually lead to increased participation in financial services.

In an interview with The Sunday Mail Business last week, Mrs Nyaradzo Nyemba from the Investment Professionals Association of Zimbabwe, which is the local unit of CFA Society South Africa, said they support scholarships and an annual research challenge in universities covering financial services as they prepare students for participation in the sector after graduation.

“We hold several programmes to educate the young, especially women, on investments and financial inclusion. We go out to universities, running outreach programmes explaining the CFA programme, the opportunities available,” she said.

“Our annual CFA Research Challenge is another initiative. We want to provide an opportunity, especially for undergraduates, to interact with people from the industry and mentors so they get an appreciation of the work environment and be equipped with the requisite skills that encourage their inclusion,” she said.

According to the Reserve Bank of Zimbabwe’s annual financial literacy report, financial literacy in Zimbabwe is generally considered to be low, and this has militated against increased usage of financial services by marginalised and underserved groups.