Time to Explain Susu

Susu is a traditional, and cultural thing here in Ghana. Probably something you wouldn't learn simply in coming to visit, but working in loans and money susu (pronounced sue sue) is very important.

In its simplest form, susu is a savings program. Each day people bring their susu (some amount of money they can afford to give) to a susu collector. The amount can vary from 1 cedi per day ($ .70) to 10 cedi $7.00) and higher. The hope or intention is to pay in every day, although people frequently miss. They turn in their susu, and the susu collector brings it all to the bank for them. In payment, the Susu collector takes one day's worth of susu for each month. The individuals can come and ask for their money from the collector at any time, and many come to collect it at the end of the month. Then they use the money to buy more inventory, or whatever they choose. so.. even though it is savings, most people, like 90+% people, are not using it for any kind of long term savings.

The question then arises - why do people even give their money to these people? Part is that they don't want to have the money from their business all at home where it may be unsafe. Also, out of sight out of mind allows people to save just a little bit every day, and then have enough at the end of the month to purchase their next batch of inventory. Second question - why pay someone to take your money to the bank for you? A lot of this is due to the small amount.. banks are large and very official institutions, and bringing in 2 or 3 cedi a day would be an embarassment.. and the banks would get annoyed with the people.

Many of the Susu collectors are now taking on the responsibility of giving small loans to those they collect from. (Again, just like our customers, usually to buy inventory to finish selling the current batch.) The loans being required of the Susu collectors are turning some of them into Kingsbridge to seek their loans. This is a new market for us, and one that we are trying to explore more.