History

Susu is one of the ancient traditional banking systems found mostly in African countries as a means of funds mobilization for commencement, sustenance and in some cases development of small scale enterprises (SSE) (Alabi et al. 2007).

The system is believed to have been introduced in Ghana by Yoruba traders originating from Nigeria (Aryeetey and Gockel 1991). In Ghana Susu is where a PERSON agrees to make a daily contribution to an ANOTHER (susu collector) for a period of 31 days and the collector retains or takes a day’s contribution as commission.

The collectors sometimes give advances to contributors which is payable in the cause of the month. Due to lack of capital it is limited to few clients.

It is known as Ikub in Ethiopia, Dyangy in Camaroon, Chilemba in Uganda, Esusu in Liberia and parts of Nigeria, Cheetu in Sri Lanka, Susu in Tobago or Sou in Trinidad (Seibel 2001) and as Tontines in Francophone Africa.

Due to the contributions of Susu to the development of SMEs and its ability to mop excess liquidity through its savings mobilization methods, susu is recognized and being incorporated into some formal financial institution, dabbed Susu savings and loans using the same methodology.

In 1994 realizing the need for self-regulation, the Association was formed and registered under the Co-operative Societies Degree, 1968 (NLCD 252), with the name Ghana Co-operative Susu Collectors Association (GCSCA) with the slogan, Good name is better than riches. The Association has 10 affiliated societies in all the regions in Ghana. It has a national secretariat in Accra, regional and 3 district offices in Tema, Swedru, and Akim Oda. The Association was established to self-regulate the activities of Susu collectors and instill best practices which would build customer confidence in their operations.