Personal savings in Africa: strengthening the institutional framework (commercial banks, post office savings banks, thrift and credit co-operatives, and savings banks proper)

The United Nations is expressing increasing concern about personal savings mobilisation in underdeveloped countries. Currently attention is focussed on Africa. The purpose of this paper is to try to analyse this concern and to place the question of personal savings mobilisation in a broader economic perspective. Four types of savings institution are discussed in some detail: commercial banks, Post Office Savings Banks, thrift and credit cooperative societies and savings banks proper. The author takes issue with the more common criticisms of commercial banks and Post Office Savings Banks as mobilisers of personal savings in Africa. She also argues that the potential importance of cooperative societies has been exaggerated.