Senegal Low-Income Workers Open Bank Accounts
May 28, 2007
Dakar 19 May 2007 |
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In the West African nation of Senegal, In a Since she is not working now, she has been spending from her savings. But ever since the 25-year-old came to Dakar from her family’s village and began working, she has been putting aside a Two years ago, with the help of her boss, Seck opened an account at one of Senegal’s commercial banks. Seck’s boss advanced to her and three co-workers the 150-dollar necessary papers. Seck goes to a small bedside cabinet and pulls out a simple wooden box with a lock. She unlocks the box and takes out the papers, explaining that before She says she told only her brothers and sisters about the bank Seck says the bank takes money out of her account for various fees. Seck says the bank also debits just over two dollars every three months for maintenance costs. But Despite Seck’s story, most Senegalese do not have bank accounts. Oumar Diene, of the Senegalese non-governmental organization CRESP, He says that banks are directing their marketing campaigns at But obstacles are still keeping many Senegalese from opening accounts. Mohammed Wilson, a director at Senegal’s CBAO bank, says one But even for those who are interested in bank accounts, the minimum Since so many businesses rely on cash transactions, Wilson says his
fewer than 10 per cent of people have accounts at traditional banks.
Such accounts have traditionally been seen as only for the very rich.
But a growing network of branches extending into more remote areas
means that more people than before have access to banks. Naomi Schwarz
visited on the outskirts of Dakar with a new mother who has a savings
account.
Margot Seck
one-room apartment on the outskirts of Senegal’s capital, Dakar, Margot
Seck is cooking lunch on her small balcony. She is using her short
maternity leave from her job as a cashier to set up the apartment.
small portion of her paycheck for just such an occasion. "When I was
paid my salary, I would spend what I needed, and I would bring the rest
to the corner shopkeeper to hold on to for me," she says.
minimum deposit the bank required, and she helped them acquire the
she moved in with her husband, she shared a room with many single
cousins, and the locked box was needed to keep her finances private.
account, and just recently, her husband. "Ah, when you say that you
have an account, people will think that you have a lot of money, even
though it is nothing."
"The first month, they took out 10 dollars. We were shocked, why did
they take out this ten dollars. When we went to the bank, they told us
it was for insurance," she says.
Some Senegalese save money at corner shops like this one
despite these costs, she says the bank account has helped her save more
money than before. "In the house, it is no good, because you can spend
the money. At the boutique it was better, but when you have problems,
you can go straight to the boutique and take the money. But when it is
at the bank, sometimes you are slower to withdraw your savings," she
says.
says this may be changing. "We have the impression that these days,
there is an accent on potential clients who, until now, have not been
taken into account by the big banks," he says.
university students, many of whom have little or no income. He also
notes the increasing number of bank branches across the country.
obstacle is a culture that prefers cash transactions. He says
Senegalese are wary of entrusting their money to someone else, and they
are unfamiliar with how banks work.
deposit can seem overwhelming, especially for non-salaried workers
whose income varies from week to week. Wilson says the minimum deposit
is required for the banks to cover their operating costs. He says if
more people had bank accounts, the banks would be able to reduce the
minimum deposit and also the fees.
branches must be prepared for large cash withdrawals. This would be
less of a burden if more people had accounts, and money could change
hands invisibly, through checks.
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