Savings and the Poor - The Methods, Use and Impact of Savings by the Poor
Rutherford, S., Mutesasira, L., Sampangi, H., Mugwanga, H., Kashangaki, J., Maximambali, F., Lwoga, C., Hulme, D. & Wright, G.
Publication Date: May 1999
Published by: MicroSave
Document Type: Paper
How do the poor of East Africa manage their money and can microfinance institutions help them do better?
Paper based on country studies of Kenya, Uganda and Tanzania. Mostly provides detailed descriptions of money management devices used by the poor. Fifteen distinct types are examined from informal, formal sector and MFI sources
Results show:- poor have very limited access to formal sector institutions
- have only limited access to new type of MFIs
- most rely on informal sector devices to manage money with ROSCAs being especially popular
- have almost no access to moneylenders
- lack deposit collectors in the region
Conceptual framework has evolved for analysing the role of savings in the money management systems of the poor. Three ways of saving-to-lump-sum ?swaps? are proposed:- saving up
- saving down
- saving through
These can be related to devices and services used in saving mobilisation
Recommends that MFIs should explore how to offer a much broader mix of ?swap? services with more flexibility in length and volume
Available on WWW as a synthesis report and 3 country case studies:
| 
View this Document
Email this Document
