Nnoboa and Rotated Susu as Agents of Savings Mobilization: Developing a Theoretical Model Using Grounded Theory

In this study, I investigate nnoboa and rotated susu systems and how they operate as indigenous co-operatives that mobilize savings from its members. The nnoboa system, according to oral tradition, evolved out of the communal way of living in Africa, particularly Ghana. Nnoboa is a form of cooperative society whereby members of the society help to weed one another’s farm on rotational basis. Rotated susu is a group of two or more people who come together to save money and the lump sum (bulk money) is given to each of the group members on rotational basis. Both systems operate like the formal banking savings and loans systems. I employ a qualitative approach, comprising seven focus group meetings in seven communities in the Bibiani-Anhwiaso-Bekwai Municipality in the Western North Region of Ghana. The findings show that the rotated susu concept emanates from the nnoboa concept and the two systems are underpinned by the following values: trust, synergy, flexibility and empathy, commitment, tolerance and punctuality and promptness. Another finding of the study is that the nnoboa and rotated susu systems offer participants a lot of mileage: helping them to generate income, raise capital, increase their savings, providing them with a source of cheap labor (all nnoboa group members provide free labor for each other in turns so that it becomes affordable for each member to weed his/her farm or clear a parcel of land during the farming season since it is expensive to hire farm laborers), increasing their production, offering them opportunities for networking and bulk purchasing, the groups serving as collateral securities or guarantors as well as the display of love and affection. Based on these findings, I develop a theoretical model for nnoboa and rotated susu systems using grounded theory. The theoretical model of nnoboa and rotated susu systems has implications for researchers, practitioners and the unemployed in terms of how the poor can form groups and access cheap labor or raise capital for any venture. Therefore, the significance of this study is that extant literature on nnoboa and rotated susu with emphasis on their values and benefits and a theoretical model that supports such a system seem to be non-existent.