Federation of the Agricultural Savings and Credit Unions, Benin (Case Study)

Publication Date: 1999
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Case Study (PDF)

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What are the key factors responsible for successful savings mobilisation?

Using the Federation of the Agricultural Savings and Credit Unions in Benin as a case study, this paper presents the findings of the Consultative Group to Assist the Poorest (CGAP) on savings mobilisation

Overviews the macroeconomic context of Benin, the financial sector, and the social and cultural context

Undertakes institutional analysis of FECECAM's (Federation of the Agricultural Savings and Credit Unions) network system, particularly of its characteristics, governance and organisational structures

Explores its demand-oriented savings products and technologies. Specifically looks at the characteristics of FECECAM's classic savings passbook account which contributes for the bulk of its savings mobilisation. Further looks at current accounts and term deposits. FECECAM has also designed two new products (patriot term deposit and investment savings plan) to meet the varied needs of their customers

Concludes that confidence is the key factor in enabling this network's activities to grow and is based on: reputation and outreach of the network, accountability, democratic selection of managers, training of elected members of the network, and efficient inspection and supervision. [Adapted from the author]