Tuesday, July 28, 2009

combo banking and pensions for informal workers

What a great idea.

AllAfrica offers news of a new plan in Ghana that offers savings and pensions for informal merchants. The plan launched as a pilot in 2005 and now has 40,000 members. Contributors are given a pass book. Half their contributions are held to provide pensions while the remaining 50 per cent can be used as a bank account from which the contributor can make withdrawals.

Officials estimate that 600,000 people in Ghana could join in the coming five years. This hybrid approach, recognizing the need for retirement money and the need to reinvest in businesses might have legs!

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