Savings: the importance and challenges

Being able to save is an essential component in moving from poverty to a more secure future, yet safe, effective methods have not been readily available to women in Sierra Leone

It's important to find a safe and workable way to save money

Saving acts as an insurance against the unexpected, such as the illness of a family member. Saving enables a woman to invest in the growth of her own business and can generate a lump sum for costs such as transport and school supplies.

Historically there have been a number of savings options available to women running businesses, however, they are subject to the problems of remote communities and low levels of literacy. These options include:

Osusu

Osusu is one of the oldest and most trusted ways for women in Sierra Leone to save. It’s a traditional, informal savings circle where members agree to contribute a fixed amount of money at regular intervals — often weekly or monthly.

Typically, at each meeting, one member receives the total amount collected, and this continues until every member has had a turn. This simple but powerful system gives participants access to lump sums they can use for school fees, health costs, business investments, or emergencies—without needing a bank account or formal documentation.

It offers simplicity and quick access to funds but lacks flexibility for loans or interest accumulation. Further, the group depends on trust between members to be able to make their contribution each week.

Village savings and loan associations

Village savings and loan associations (VSLAs) are informal, community-based savings groups normally created by a charity, that give young women a structured way to save money and access small loans.

Members contribute regularly to a shared savings pool and can borrow from this fund to meet personal or business needs. Loans are repaid with modest interest, which helps grow the group’s collective savings.

VSLAs often rely on written record-keeping that can exclude or disadvantage members with lower levels of literacy, who rely on trusting the group’s leaders to safeguard their savings.

Mobile money wallets

The rise of mobile technology has opened new doors for financial access. Services like Orange Money and Africell Money allow women to store money securely on their mobile phones, make transfers, pay bills, and avoid the risks of keeping physical cash at home.

This does, of course, depend on having a working phone, phone signal and being able to easily access an agent who processes transactions in or out of your account.

Personal cash savings

Many women continue to save in cash, often keeping money hidden in safe spots at home. This method is straightforward and avoids service charges, but it carries significant risks, including theft, fire, or social pressure to share funds.

Formal bank accounts

Although still rare in rural areas, formal savings accounts are gradually becoming more accessible in towns and cities through microfinance institutions and community banks. These accounts can offer greater security and even generate interest. Yet for many women, banking services remain unfamiliar, intimidating, high cost or simply too far away to be practical.

Working closely with women in communities that face these challenges, Prosper has developed our savings bank system which forms a key part of our programme.

Community savings banks are the backbone of financial resilience