The Potential for Savings and Financial Innovation in Africa

The paper examines the first experiences in savings mobilization achieved in Africa by specialized financial institutions during the 60s and the structural changes brought about in financial systems during the 70s. Opportunities for financial innovations as well as institutional reforms to be implemented in the future are presented and suitable innovative proposals are discussed. More confidence on the part of the Africans themselves and more efficient mobilization of the continent's vast untapped potential of natural resources, manpower and savings will be the key factors in fostering its economic and social development. In this scenario savings and credit institutions can play a crucial role in mobilizing household savings and in financing productive investments. A prime objective of governments at the national level, and, on wider dimension, at international level, should be to encourage these financial institutions to multiply and strengthen in all African countries. The co-operation that can be provided by savings banks and other European financial institutions devoted to savings mobilization can be of greatest importance in this respect particularly as regards research, technical assistance and, above all, personnel training