The Domestic Savings Shortfall in Sub-Saharan Africa What Can Be Done About It?

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Domestic Savings Shortfall in Sub-Saharan Africa aims to increase knowledge about the key drivers of domestic saving rates in Sub-Saharan Africa (SSA), as well as whether alternative approaches, such as pension funds or fintech, could provide new solutions to increase domestic savings. The book also examines the lessons learnt from the experiences so far in different countries in SSA, and what can SSA learn from the experience of other regions which have been more successful in raising savings rates.

The book consists of two parts: thematic studies and country studies. The thematic studies examine the implications of new developments in African financial markets on savings behaviour, the role of sovereign wealth funds, pensions, and capital markets in augmenting savings and in economic development, the challenges of the debt crisis in Africa, the implications of financial liberalization for private saving in SSA, and lessons on how to increase savings rates from East and South Asia. The four country studies-Tanzania, Cameroon, and Ghana-examine the determinants of domestic savings. The countries were selected based on criteria that capture the diversity of savings performance in SSA. Each case study uses a common conceptual framework drawn from the life-cycle theory of savings and the same empirical methods to test for the determinants of savings using time-series data for the country in question. The findings of the book provide clear recommendations on how to increase savings in Sub-Saharan Africa.

Rose Ngugi senior researcher and Executive Director, Kenya Institute for Public Policy Research, Kunal Sen, Director of UNU-WIDER, Helsinki, Finland, and Professor of Development Economics, Global Development, University of Manchester

Rose Ngugi is a senior researcher and Executive Director, Kenya Institute for Public Policy Research and Analysis, where she manages research and capacity-building activities at the institute. Her research interests include financial sector developments, macroeconomic issues, and sustainable development. She has published widely in peer reviewed journals and discussion papers.


Kunal Sen is Director of UNU-WIDER, Helsinki, Finland, and Professor of Development Economics, Global Development Institute, University of Manchester, UK (on leave). He has over three decades of experience in academic and applied development economics research. He has performed extensive research on the political economy of growth and development, international finance, the dynamics of poverty, social exclusion, female labour force participation, and the informal sector in developing economies. His research has focused on India, East Asia, and sub-Saharan Africa. He was awarded the Sanjaya Lall Prize in 2006 and the Dudley Seers Prize in 2003 for his publications.

PART I: INTRODUCTION1. The domestic savings shortfall in sub-Saharan Africa: What are the key issues?, Rose Ngugi and Kunal SenPART II: THEMATIC STUDIES2. Fintech, savings, and financial inclusion in sub-Saharan Africa, Njuguna Ndung'u3. Accelerating capital markets development in sub-Saharan Africa, Githinji Njenga, Josphat Machagua, and Samwel Gachanja4. Old-age savings in sub-Saharan Africa, Owen Nyang'oro and Githinji Njenga5. Sovereign wealth funds in Africa, Tony Addison and Amir Lebdioui6. Public debt challenges in sub-Saharan Africa, Maureen Were7. The effects of financial liberalization on private savings in sub-Saharan Africa, Elizabeth Asiedu, Fafanyo Asiseh, Theresa Mannah-Blankson, and Jones Arkoh Paintsil8. Economic growth and savings transition in Asia: Unity in diversity, Prema-chandra Athukorala and Wanessa SuaninPART III: COUNTRY STUDIES9. Drivers of domestic saving in Kenya, Rodgers Musamali, Cecilia Mutia, and Rose Ngugi10. Determinants of domestic savings in Tanzania, Maureen Were and Cornel Joseph11. Understanding domestic savings in sub-Sahara Africa: A case study of Ghana, Charles Godfred Ackah and Monica Lambon-Quayefio12. The determinants of domestic savings in Cameroon, Abrams Tagem and Desiree Sama-LangPART IV: CONCLUSION13. Conclusions and policy implications, Rose Ngugi and Kunal Sen