Chapter 3: Exploring Leadership Competences in Informal Savings Groups in Sub-Saharan Africa

Informal savings groups contribute to financial inclusion and socio-economic development across sub-Saharan Africa. Non-governmental organisation (NGO) initiatives are aimed at promoting informal savings groups and leadership competences. The concept of Village Savings and Loan Associations (VSLAs) is considered a tool for financial education (Niyibizi, 2014). Academic literature on informal savings groups has only sparsely touched on the aspect of leadership competences in informal savings groups. Financial literacy as a competence is an exception. Kyazze (2010), for instance, found that SACCO members lacked financial literacy. Ndjeunga and Winter-Nelson (1997) refer to leadership abilities to screen members and enforce rules.

Informal savings groups rely on volunteers (Allen & Panetta, 2010), with many members assuming some leadership role. The objective of this chapter is to identify a set of competences relevant to informal savings group leaders by devising a conceptual structure to a set of competences and laying a conceptual foundation for future research. The competences identified through the research are shown – as a preview – in Table 1, along with a selection of the main empirical elements constituting each competence discovered.