Susu: A Dynamic Microfinance Phenomenon in Ghana

Abstract

Susu is a popular form of savings in most developing economies. It is practiced in different forms and under different names in both developing and developed countries. In spite of its contribution to the socio-economic development of both developing and developed countries, it remains under-researched. There is therefore the need for further research into this complex financial phenomenon. This paper thus, critically examines existing literature on Susu and other micro savings phenomenon. It shows that Susu is a complex and dynamic social phenomenon. In substance, it discovered that susu shares similarities with other micro savings schemes such as rotating savings and credit schemes, accumulating savings and credit associations as well as Christmas hampers and Christmas clubs in England and the United States respectively. It establishes that similar to other micro savings schemes, the object of Susu is to help rural, poor and low income earners meet their economic, social or communal needs.

Keywords: Microfinance, Susu, Ghana, Informal Finance, Micro Savings, Rural Economies