Our money, our rights: - Consumers International

An introduction from Joost Martens, Director General of Consumers
International.
Access to stable, secure and fair financial services is important for consumers
everywhere, including Africa. Despite relatively low levels of coverage by the formal
banking sector, studies show that African consumers are willing and able to use a
variety of financial services. Commonly held myths that poor consumers present
too great a risk or are simply not interested in financial services are not borne out
by the facts. Indeed, the phenomenon of micro-finance has firmly taken hold on the
continent and is set to grow significantly. Nevertheless, despite demand, the
financial services market is still significantly under-developed, and consumers go
under-served. The evolution of financial services provision in Africa presents a
number of interesting questions. Will African consumers be spared the negative
consequences of mistakes made by others? Will governments promote the right
conditions for this sector to thrive and work with all stakeholders to ensure that the
consumer interest is upheld?
This briefing explores the latest developments in this ongoing story. It is produced
by Consumers International (CI) as part of celebrations for World Consumer Rights
Day 2010.
Poor people are interested in financial services.
Savings ratios (ie the percentage of household income put aside), for example, are
higher in middle-income countries (26%) than in high-income countries (23% 2 ). In
Sub-Saharan Africa (SSA) the level is far from negligible at 15%. In 2000, Uganda
had a rate of 3.5% (a similar level to that of the United States before global financial
crisis), while the figure for the wider COMESA (Common Market for Eastern and
Southern Africa) region was 18% 3 . This indicates a significant variability within and
between regions.
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