By Ishmael Koroma & Synthia Lateu
The Founder and Chairman of Trinity Group, Akol Ayii has applauded the United Nations, UN Women, and United Nations Development Programme-UNDP, Africa Development Bank and Stanbic Bank’s move to provide financial services to women and youth-led enterprises from seven states in South Sudan.
Speaking about the launch of the UNDP’s Youth Enterprise Development Capacity Building Project YEDCB and UN Women’s Private Sector Development in Fragile Context, PSDFC Financing Facility on August 01, Akol Ayii expressed satisfaction with an initiative that looks forward to assisting 2.2 million food-insecure individuals and enabling them to start or expand their enterprises.
“I am thrilled about this new partnership where M-gurush are the implementing partners of an initiative aimed to address acute food insecurity and malnutrition in South Sudan. Together with The African Development Bank, in collaboration with the UN Development Programme (UNDP) and UN Women the partnership will provide crucial financial support to youth and women entrepreneurs in South Sudan,” Akol Ayii said. “Creating opportunities and empowering our women and youth is critical to sustain peace and stability of our nation. Additionally, technical support will be provided to formalize their businesses, develop business plans, and ensure long-term sustainability. This speaks to our vision and philosophy as Trinity Group where we aim to be an impactful business through all our subsidiaries,” Akol enthused.
Youth unemployment in South Sudan is both a cause and a consequence of fragility. It is a source of political instability and social upheavals. With the growing number of returnees, the government is challenged to ensure that more South Sudanese are absorbed into the labour market. Reintegrating South Sudan’s 1.6 million internally displaced, 2.3 million refugees, and members of armed groups into the labor market is a major challenge. The government is challenged to ensure that more South Sudanese are absorbed into the labour market. Experience has shown that in areas where youth are engaged in productive undertakings, such areas do not experience widespread conflict. Therefore, the development of micro and small enterprises (MSEs) and job creation through this project will not only address youth employment but it will also contribute to peace building. To sustain peace and development in South Sudan, widening the opportunities for youth who account for 72% of the population, and engaging them through entrepreneurial skills enhancement and economic empowerment are essential. With micro and small enterprises (MSEs) accounting for about 92% of total businesses in the country, it serves as one of the few avenues for youth to have jobs and income.
The United Nations Development Programme (UNDP) and UN Women with support from the African Development Bank and in partnership with Stanbic Bank and mGurush, along with leadership and oversight from the Ministry of Finance, the Ministry of Youth and Sports, and the Ministry of Gender, Child, and Social Welfare are providing the financing facility components of UNDP’s Youth Enterprise Development Capacity Building Project (YEDCB) and UN Women’s Private Sector Development in Fragile Context (PSDFC) project.
According to a press statement shared with PAV, ‘’The financing component of both UNDP’s and UN Women’s projects provides financial services to women and youth-led enterprises from seven states in South Sudan. Women and youth who meet the loan requirements and who are organized in Village Savings and Loans Associations (VSLAs), or establish micro and small enterprises (MSEs), or form a business cooperative will receive start-up capital in the form of interest-free loans ranging between $2,000 USD and $10,000 USD from the revolving fund currently hosted with Stanbic Bank,’’ the release noted.
According to UNDP, the money will help them to start an enterprise, grow and add value to an existing business, and/or link them to wider markets adding that the VSLAs, MSEs, and Cooperatives will also be provided with technical support to formalize their business venture, to develop their business plans, and to execute a sustainable business.
‘’With funding from the African Development Bank (AfDB) along with leadership and oversight from the Ministry of Finance, the Ministry of Youth and Sports, and the Ministry of Gender, Child, and Social Welfare, UN Women and UNDP are committed to ensuring that youth who have the potential to grow as entrepreneurs are self-employed and/or create employment for others through their sustainable businesses,’’ the release noted.
The release added, at the end of the project, the revolving fund will be invested in the Youth Enterprise Development Fund, which will be established by the Government of South Sudan and administered by the Ministry of Youth and Sports.
‘’Stanbic Bank, UNDP, and UN Women hosted the “YEDCB and PSDFC Financing Facility Launch” on August 1, 2023 at the Multi-service Training Centre (MTC) in Juba. The event highlighted the contribution of the private sector partnership and the collaborative efforts being made by development agencies and the private sector to improve lives of youth and women entrepreneurs in South Sudan through the financing facility. Stanbic Bank is the current provider of the financing facility that provides the interest free loans to MSEs, VSLAs, and Agricultural Cooperatives. MGurush will deliver the loans to the recipients and receive loan payments through their mobile money transfer service,’’ the release added.
“Stanbic Bank’s involvement in UNDP’s and UN Women’s economic empowerment projects underscores our strategic commitment to investing in the untapped potential of youth and women. By facilitating access to resources such as work opportunities, leadership roles, financial services, credit, technologies, and markets, we are not only empowering these individuals but also fuelling the expansion of their businesses. This, in turn, catalyses sustained economic growth and development in South Sudan. Our investment in financial inclusion and economic empowerment aligns seamlessly with Stanbic Bank’s ethos which is ‘It Can Be’. This creed stands for the unwavering belief in the realm of possibilities and the actualization of dreams and aspirations of our partners, clients, and our wider communities.” said Lorna Mwangi, Head, Corporate Investment Banking, Stanbic Bank Ltd, South Sudan during her opening remarks.
“The route out of poverty is through financial inclusion and our product allows citizens to better manage their existing financial resources. Greater financial inclusion also has indirect impact on promoting shared economic growth (SDG 8), innovation and sustainable industrialization (SDG 9), and equitable and peaceful societies (SDG 10 and 16). mGurush aims to bridge the financial gap by empowering women and youth through availing access to financial services in a convenient, affordable and secure way. We offer a customer-oriented user-friendly interface that is easy to understand and operate real-time and instant transactions at an affordable rate. Our work takes a multi-dimensional approach to financial inclusion and provides a framework on how to incorporate and link financial literacy to digital literacy” said Hon. Mou Ambrose Thiik, Chief Operating Officer, mGurush.
Dr. Rukaya Mohammed Deputy Country Representative of UN WOMEN spoke about the significance of these projects to the work of UN WOMEN in South Sudan. “Economic empowerment of women is fundamental for growth, sustainable development, durable peace building, and achievement of the Millennium Development Goals (MDGs). Expanding women’s ownership and control also has benefits for their families, communities, and the country. UN Women’s Private Sector Development in Fragile Context (PSDFC) project in Western Equatoria and Western Bahr el Ghazal supports the establishment of and growth of 300 micro and small enterprises (MSEs) through business development services, technical training, links to markets, and facilitating access to financing. The partnership with Stanbic Bank will ensure women and youth have access to financing, thus allowing them to diversify and sustain their MSEs.”
Dr. Samuel Doe, Resident Representative of UNDP in South Sudan also stressed the importance of such projects for South Sudan, “Youth have tremendous potential to grow as entrepreneurs and create employment for others through their sustainable businesses. UNDP’s Youth Enterprise Development Capacity Building Project (YEDCB) aims to enhance employability and create jobs for more than 3,000 youth, half of whom are young women aged 18-35 years in five states. Working together with private sector financing facilities, such as those currently provided by Stanbic Bank, we are strengthening the private sector, building entrepreneurship skills, and improving the enabling environment. UNDP is committed to fostering economic recovery and peace building through private sector development and youth economic empowerment.”
A small marketplace featuring a selection of MSEs showcased a small selection of products and services provided the beneficiaries. The local implementing partners, such as SPEDP (Support for Peace and Education Development Program), VOSDO (Vocational Skills Development Organization), and SAADO (Smile Again Africa Development Organization) who work directly with the MSEs to provide training and business development support were also on hand and interacted with donors, VIPs, and invited guests. Representatives from VSLAs, from MSEs, and from cooperatives also spoke about the impact the financing facility loans has on their efforts to improve their ability to generate income.
June Ojukwu Joseph from the Pure Organic South Sudan Honey was on hand to receive her loan and spoke on behalf of the cooperatives and women entreprenuers.
“This opportunity to be part of this program will ensure that the women working at Pure Organic South Sudan can support their families, and more than that, it encourages us to build our business so that we can contribute to the development of South Sudan.”
