This study challenges the basic proposition that “the poor cannot save”, through its study in Uganda, where there is a vibrant and diverse informal financial sector. This report shares findings that improve knowledge and understanding of how poor people in Uganda save like in the formal sector—with the informal mechanisms like banks, moneylenders, pawnbrokers, money guards, deposit collectors, ROSCAs, ASCAs etc. which are the most commonly preferred by the poor. In between, MFIs constitute the semi formal sector. The study highlights the impact of savings on the poor people’s lives through which they can meet their life cycle needs, cope up with exigencies and opportunities to build up their wealth. It also presents impact of savings on various kinds of institutions.

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