2.2 Formalizing Informal Methods of Financial Intermediation: Microfinance in Africa - Experience and Lessons from Selected African Countries
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Free PDF Download References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund |
(IMF Working Paper, Prepared by Anupam Basu, Rodolphe Blavy, and Murat Yulek1, September 2004)
Traditional informal systems for the collection of savings and for lending have provided
substantial insight for the operations of licensed MFIs in African countries. The use of
informal traditional methodologies by licensed MFIs has been instrumental in mobilizing
savings from lower-income households and giving them access to financial services that are similar to those provided by the formally regulated financial system. In particular, licensed
MFIs have benefited from interacting with informal players in two ways:
• First, savings mobilization methods developed by informal savings collectors have
been widely replicated. One example is how the susu collector function was
expanded in Ghana by licensed MFIs with “Mobile Banking” services, with officers
visiting rural markets on specific days (Box 2).
• Second, informal institutions have been integrated into the saving and lending
operations of licensed MFIs. Informal savings collectors that place their deposits
with the larger MFIs, may be considered a part of the saving mobilization effort of
the latter; notably, they provide an additional layer in the structure of the
microfinance system. This is the case for example in Ghana, with licensed MFIs
working with Susu clubs (Box 2).
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Free PDF Download References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund |
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About the Author: International Monetary Fund RSS for International's articles - Visit International's website The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy. Click here to visit International's website. V A Markets for Exports AID VS COMMERCE FACTORS INFLUENCING THE GROWING TIES VII B Demutualization PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA V B African Demand for Infrastructure AID VS COMMERCE FACTORS INFLUENCING THE GROWING TIES VII A Automation PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA Introduction Fiscal Dimensions of Sustainable Development |
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