Barclays has begun working with traditional banking agents in Ghana as
part of a new programme to loan small sums to poor people.
The UK-based bank is working with local entrepreneurs, known as Susu
collectors, to provide loans to market traders and small business
owners.
In the Susu system, which has existed in Africa for 400 years,
collectors charge a small commission on daily cash deposits made by
individual savers. They then return the money to customers at the end
of the month as a lump sum.
As part of the pilot project, Barclays Ghana is providing bank accounts
for Susu collectors, enabling them to keep the collected money secure.
In addition, Barclays is loaning money to collectors to lend on to
their clients.
‘Traditionally [in Africa] Barclays has targeted big business and few
people, but the logic behind this is that we wanted to start moving
downwards and work within the traditional financial system,’ said
William Derban, Barclays’ financial inclusion manager.
Barclays is also committing £150,000 ($260,000) for training and
awareness-raising. Working with the Susu collectors’ national
association and the Ghana Microfinance Institutions Network, the bank
is supporting one-day education workshops for low-income savers and is
training Susu collectors to manage credit risk. At present, the project
involves 100 collectors.
‘The financial inclusion aspect of the programme is the most important
part, because it involves changing people’s attitudes,’ said Derban.
‘That’s why financial awareness and capacity building are key.’
James Laing, a development specialist with London-based consultancy
Africa Practice, said the scheme is an example of ‘leapfrog
development’ because it has applied lessons learned from UK
microfinance projects.
‘It would be interesting to see them develop this into a process where
they take micro-entrepreneurs and grow them into small enterprises,’ he
said.
An estimated four in every five people in Africa have no access to
banking services. Ghana’s Susu system is operated by about 4000
collectors, who collect £75million in savings a year.
