KfW Develoment Bank has organised a workshop for actors in the finance industry aimed at promoting a savings culture among low-income earners.

The event, which was in collaboration with the Bank of Ghana, was an exchange event between practitioners and experts in the microfinance industry. It was dubbed “Creating an Efficient and Sustainable Savings Culture in Ghana.”

Topics discussed include “50 pesewas Do Matter – The Case for Savings”, “The Savings Culture in Ghana”, “Creating an Efficient and Sustainable Savings Culture – The Benefit of a Deposit Insurance Scheme”, and “Creating an Efficient and Sustainable Savings Culture – Innovative Savings Products”.

In a statement, KfW Development Bank said savings instruments that are designed for low- income customers promise a high impact on the welfare of these individuals and households.

It said apart from these individuals and households, financial institutions within the microfinance sector also stand to reap significant benefits from an environment characterised by a high savings culture.

“These institutions gain access to a pool of funds which allows them to expand their micro-lending business as well as reduce their cost of doing business, as savings is the cheapest source of funds for these institutions.

“Again, at the macro level, high levels of deposits in local currencies can help to alleviate liquidity and exchange risks and significantly increase institutional stability given the ongoing turmoil in international financial markets.

“KfW Banking Group has an enviable track record in supporting the development of the financial markets of many countries around the world through its equity holdings in ProCredit Holding and Advans Holdings,” it said.

In Ghana, KfW Development Bank is equally active in the financial sector through its 15% equity holding in Advans Ghana and the ongoing preparation of the Rural Microfinance Programme. The programme will provide key microfinance institutions like ProCredit and Sinapi Aba Savings & Loans with refinancing facilities to enable them expand their rural lending activities. The objective is to provide access to responsible finance.

KfW is one of the world´s leading and most experienced promotional banks. Established in 1948 as a public law institution, KfW is owned 80 per cent by the Federal Republic of Germany and 20 per cent by the federal states (“Länder”).

It carries out Germany´s Financial Cooperation (FC) with developing countries on behalf of the Federal Government.