London-Based Barclays Bank Expands Reach into Microfinance Investing Through Partnership in Ghana

Headquartered in London, Barclays Bank is a financial services group engaged in banking, investment banking and investment management with a very large international presence in Europe, the USA, Africa and Asia. Barclays is one of the largest financial services companies in the world with over 25 million clients and reported ‘05 pre-tax profits of å£5,280m.

In December of 2005, Barclays entered the microfinance sector via a pilot program in the west African country of Ghana. This initiative combines modern financial services with Susu collection, a form of ancient African banking in which collectors personally gather income from their clients and return it at the end of each month åö minus a fee (p.56). This collection method ensures greater security for the money than the clients could other wise guarantee themselves. The Susu also lend small amounts of money and make monthly payments on behalf of their clients. The Barclays microfinance initiative has three parts:

– A specialized bank account for Susu collectors, including the provision of capital for on-lending to their clients;
– Training programs for Susu collectors; and
– Financial literacy and education programs for Susu clients
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