The Role and Impact of Savings Mobilization in West Africa: A Study of the Informal and Intermediary Financial Sectors in Benin, Burkina Faso, Ghana, Guinea, Mali and Togo (Volume 1)

Publication Date: Mar 1999
Published by: MicroSave
Document Type: Case Study

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A comparative analysis of savings mobilization practices in six countries of West Africa

This study was undertaken by MicroSave Africa (MSA) to promote savings services for poor people in Africa. The purpose of the study was twofold:

• To understand how poor people save in West Africa;
• To see the response of microfinance institutions as well as the informal sector on the issue of saving services.

Further, the study:

• Provides a brief description of autonomous/ informal mechanisms at work in West Africa, and lessons they can provide;
• Establishes a typology of institutions;
• Provides a comparative analysis of decentralized financial systems;
• Presents the factors that explain the development of savings mobilization;
• Analyzes the role and impact of savings;
• Makes recommendations for improving savings products and services.

The document points out some trends of recent years:

• The informal sector remains dynamic, despite the adaptability and inventiveness of this sector its resources remain limited;
• Banking systems remain concentrated in capital cities and large secondary towns;
• While there exists a relatively diversified range of credit products, savings products are few and simple;
• The primary motive for saving is access to credit.

The study makes some recommendations for the future:

• Having a precise strategy for savings mobilization by institutions will help;
• Inventing new products and developing new alliances with the autonomous and banking sectors are areas that must be explored;
• Improving observation and research efforts should further contribute to refining strategies and monitoring their effects.