Kumbungu women devise way of saving earnings – in a metal box – to avoid high interest bank loans

Women in the Kumbungu district in the Northern Region have had it with high interest bank loans and have decided to take matters into their own hands; they have devised an indigenous means of saving their daily earnings.

The women, instead of saving with loans and savings companies or rural banks, have decided to mould a metal box with two different money entry points; red and white. The red is meant for high denomination Ghana cedi notes, while the white is for the lower denominations such as coins.

The metal box saving, according to the women, was as a result of what they called high interest rates being charged by loans and savings financial institutions and banks. Sharing of the booty from the box is done on yearly basis in the presence of all contributors, who have their names in the records book.

The women have since formed an association called ‘Adakabila’ (small box) with members drawn from over 24 womens’ groups in the district. Explaining the rationale behind saving in the box to Zaa News, the treasurer of the association, Hajia Nafisah Osman said they have been relying on loans from banks which are not helping them to improve their economic activities.

The 2014 savings were shared among all contributors at Kumbungu two months preceding the 2015 savings. Each member takes her share according to her contribution in their record book.

The metal saving idea was introduced to the women by SUŋ Foundation, in collaboration with one Sakina Iddrisu Agaaga, who convinced the women to accept the idea.