YOUTH DEVELOPMENT BANK(YDB)

The Youth Development Bank is expected to contribute richly to the achievement of the socio economic goals. The most important of these are economic wellbeing with full employment, high rate of economic growth, socio economic justice and an equitable distribution of income and wealth amongst the youth, stability in the value of money, mobilization and investment of savings for economic development in such a way that a just profit sharing return is ensured to all parties involved. This banking system is to be established under the youth development agenda aimed at developing a comprehensive vision of an interest free banking. The system will be tasked to mobilize financial resources for enhancing social wellbeing by promoting economic development along transparent regulatory framework. It will be dedicated to the elimination of the payment and receipt of interest in all its forms. This aspect makes the Youth Development Bank different in principle to other financial institutions. Profit and loss sharing will replace the interest rate mechanism in our financial framework which will act as a method of resource allocation although a large number of different contracts feature in this kind of financial system such as trustee finance, equity participation, membership fees, mark up methods, banks share capital, and demand deposits also act as a source of funds. Profits and losses on a physical investment are shared between the creditor (YDB) and the borrower according to a formula that reflects their respective levels of participation. The overall objective of the Youth Development Bank is to create an efficient, progressive and comprehensive financial system that will increase access to credit services by the youth and to contribute significantly to the effectiveness of Ugandas financial sector while meeting the economic needs of the nation.

Youth unemployment in Uganda is the highest in Africa with about 83 percent. Uganda has experienced a strong GDP growth averaging 7 percent annually but this has not generated jobs, a trend seen across the continent. Estimates indicate that at least 400,000 youth graduate every year from various universities in the country yet according to Uganda Investment Authority(U.I.A), only 150,000 jobs are created annually leaving 350,000 youth unemployed. It is therefore expected that with introduction of the Youth Development Bank(Y.D.B), there shall be significant increase in access to credit, development of youth enterprises, creation of employment opportunities and hence a rise in economic growth. However, when we decide to carry out an intervention to support the youth, we imply that there is a discrepancy between status quo and what could be or should be. This gap between the existing condition and the desired condition is what we commonly refer to as a need. To understand these needs, we employ the following procedures, using cross-sector assessment to understand our target group, this is because economic opportunities can rarely be understood in isolation but are very much connected in other aspects of life. Also using a market assessment to understand the local economy and given our focus on strengthening youth entrepreneurship, a prime component of context analysis is the assessment of local economy. This typically includes assessing the local market and assessing the market of goods and services.

The following specific recommendations are formulated with a view of
building the capabilities of the Youth Development Bank and operators that will
compete effectively and to increase the significance of their market share in the
financial system. In addition, the underpinning financial infrastructure needs to be
strengthened to support the expansion of youth activities. It is envisioned that the
Youth Development Bank shall evolve in parallel with the interest based banking
and insurance to achieve the following;
Constitute 27.5 percent of the banking and insurance market share
with an effective contribution to the financial sector of Ugandas
economy.
It shall be represented by a number of strong and highly capitalized
banking institutions and operators offering a comprehensive and
complete range of products and services.
It shall be underpinned by a comprehensive and conducive
regulatory framework.
It shall be supported by a dedicated institution in the Judiciary
system that addresses legal issues related to the Youth
Development Bank and its activities.
The Youth Development Bank shall be supported by a sufficient
number of well-trained high caliber youth and management teams
with the required expertise.

I am 23 years of age, born in Uganda and studied up to university, while at university, I did bachelors in science in Quantitative Economics from Makerere University, and I have the passion of developing my country into a middle income economy in the next 5 years by mobilizing my fellow youth who have the energy and capacity to think creatively and also have a goal of economic transformation. I am endowed with skills in visionary leadership, entrepreneurship, creative thinking and financial discipline. I received a gold certificate of recognition from Educate club in 2012 after initiating a community based project that identified a community need and hence became a solution to the problem. I am a CEO of Africa Solar Initiative, a community based organization that is aiming at reducing the rate of carbon emissions from wood fuels by introducing hybrid vacuum tube solar cookers into communities and local households which is currently subscribed under Universities Together Empowering Development(UNITED), a non-profit organization(N.G.O) that focuses on supporting youth initiatives.

start-up stage