Non-governmental organization Financial Literacy Foundation (FLF) African has launched the Financial Literacy for Coronavirus Alleviation (FLICA).
The virtual launch on Monday, July 13 was done by Executive Director of FLF Richmond Kwame Frimpong.
FLICA is expected to provide financial literacy to the formal and informal sectors on how to handle the economic and financial hardship arising from the Covid-19 pandemic for financial wellness.
As part of its strategic goal to reduce extreme poverty in sub-Saharan Africa, FLICA will help achieve four critical objectives namely educate individuals on personal financial prudence to mitigate financial crises emanating from reduced incomes, sudden job losses, and increased health costs due to the Covid-19 pandemic, assist in closing the financial inclusion gap and help low income earners as well as micro, small and medium enterprise (MSMEs) to achieve financial wellness, access available stimulus packages, make the most of their cash flows, tax returns, savings, credit, investments, mortgages, insurance and pensions, avert the risk of making ineffective financial decisions, increasing debt and becoming victims of abusive financial practices and potentially strengthen the efficiency of financial markets in Africa.
Consumers who are better informed about financial risks and opportunities, and who are more aware of their own rights and responsibilities in relation to financial institutions can contribute to developing better functioning financial markets (alongside appropriate regulation and consumer protection), Mr Frimpong said.
This continental project is geared towards all the 46 countries in sub-Saharan Africa and aims to achieve financial independence for eight out of every 10 individuals by 2030.
As a deliberate strategy, FLF’s Informal sector reach will cover the mass rural (farmers, fisher folk, deprived communities) and mass urban (market women, street hawkers, traders, retail sellers, etc.).
The formal sector will also reach workers in the private, public, social sectors (mass, middle class, and high net worth), pensioners, entrepreneurs, students across primary, secondary, tertiary, vocational and technical levels.
“Our “IES” approach will Inform, engage and support people through practical and impartial education to build their financial awareness and encourage informed money decisions for their financial wellbeing especially in these hard-economic times of Covid-19,” he said.
“This strategic approach will address attitudinal and behavioural barriers to our goal of financial wellness through public education (audio, visual, online and on-air channels with resource materials) in both official and local country languages.
“It will also engage governments in addressing structural barriers to achieving long-term, continental improvements in institutionalizing financial literacy.”
FLICA is expected to employ consistent, strategic and collaborative partnerships with institutional stakeholders such as donor agencies, ministries of finance and economic planning, regulatory bodies, community service, education service, health service, security service, academia, industry and professional bodies in achieving our financial wellness for all objective.