Generation Z, born between the mid-1990s and mid-2000s, is the first generation to grow up in a fully digital world. In Africa, where the youth population is the largest in the world, Gen Zers are facing unique financial challenges that threaten their financial well-being.
According to a recent report by the African Development Bank, African youth have poor financial literacy, low access to financial services, and limited opportunities for entrepreneurship. These factors contribute to the poor financial life of African Gen Zers.
One of the major issues that African Gen Zers face is a lack of financial education. Most of them do not receive any formal financial education in schools, and their parents may not have the knowledge or resources to teach them about money management. As a result, many African Gen Zers lack basic financial skills, such as budgeting, saving, and investing.
Moreover, African Gen Zers often have limited access to financial services, such as bank accounts, loans, and insurance. According to a report by the World Bank, only 24% of Sub-Saharan Africans have a bank account, compared to the global average of 69%. This lack of access to financial services makes it difficult for African Gen Zers to save, invest, and build credit.
Another issue that African Gen Zers face is the lack of opportunities for entrepreneurship. Despite having a high entrepreneurial spirit, African Gen Zers often struggle to start or grow a business due to limited access to capital, skills, and networks. This limits their ability to create wealth and build financial stability.
To address these challenges, African governments, financial institutions, and educators need to work together to improve the financial life of African Gen Zers. This could involve providing financial education in schools, expanding access to financial services, and creating more opportunities for entrepreneurship.