Ghana

When YouthSave began, Ghana’s formal financial sector was comprised of 28 registered banks along with an active microfinance network, a rural banking segment, and an informal sector involving susu collectors. Despite the number of banks in Ghana at the beginning of the YouthSave project, 80 percent of the adult population lacked access to any financial services such as savings, loans and insurance investment. In order to encourage financial inclusion, the Bank of Ghana, the country’s regulatory body, had made significant stridesin an effort to promote branchless banking, financial literacy and consumer protection. With financial inclusion and youth development increasing in importance, the Government of Ghana also put into effect a National Youth Policy and created the National Youth Authority, initially the National Youth Council . That Council was charged with and continues to promote youth development, enabling participation through existing youth associations by addressing health issues, unemployment, and limited education and training opportunities.

See the Ghana Country Assessment for Youth Development Accounts from the Center for Social Development here.

Financial Partner: HFC Bank Ghana Ltd

Established as a wholly owned subsidiary company, Home Finance Investment Fund Limited (HFIF) later became HFC and in 2003 was issued a Universal Banking License by the Bank of Ghana. At partnership, HFC offered a full range of retail banking, investment products and services including various deposit accounts; housing, education, and consumer loans; and Ghana’s first mutual fund. In addition to diversifying its product offerings, HFC had expanded down the socio-economic ladder with Boafo Microfinance Services, a joint venture with NGO, CHF International. A microfinance service company, Boafo operated out of HFC’s branches but utilized delivery channels appropriate for low-income clients, including roving deposit (susu) collectors. When YouthSave began, HFC had 22 branches in seven of Ghana’s 10 regions, and planed to have a branch on the campus of every tertiary educational institution in the country by the end of 2010. For this older youth market, HFC offered Students Plus savings accounts, which were a zero-balance, ATM-equipped savings account designed for use in conjunction with an educational loan. Upon graduation, this account was designed to become eligible for automatic conversion into a Life Starter account, HFC’s deposit product for young working adults. These products habituated high school students to saving and banking. To learn more about HFC today visit: www.hfcbank.com.gh.

Research Partner: Institute of Statistical, Social, and Economic Research (ISSER)

A semi-autonomous institute within the Faculty of Social Studies at the University of Ghana, ISSER was one of the nation’s leading research institutions in social and economic development when it partnered with YouthSave. It had conducted nationwide studies for the government of Ghana, the United Nations, and the World Bank. Faculty experience included conducting field experiments (both randomized and quasi-experimental), analyzing data and producing comprehensive reports, and publishing in top quality journals. ISSER researchers had been involved in research and consultancy projects on economic growth, financial and monetary policy, trade and exchange rate policy, household consumption behavior and patterns, poverty, gender, and livelihoods, among others. Researchers at ISSER had also published savings and banking-related publications. For YouthSave, ISSER, with the support of the Center for Social Development, would design and conduct an experimental impact study to produce robust data on the economic, psychological, social, and health-related effects of youth savings on young people and their households. To learn more about ISSER today visit: www.isser.edu.