Nnoboa and rotated susu as agents of savings mobilization: Developing a theoretical model using grounded theory

Abstract

In this study, I investigate nnoboa and rotated susu systems and how they operate as indigenous cooperatives that mobilize savings from its members. I employ a qualitative approach, comprising seven focus group meetings in seven communities in the Bibiani-Anhwiaso-Bekwai Municipality in the Western North Region of Ghana. The findings show that the rotated susu concept emanates from the nnoboa concept and the two systems are underpinned by the following values: trust, synergy, flexibility and empathy, commitment, tolerance and punctuality and promptness. Another finding of the study is that the nnoboa and rotated susu systems offer participants a lot of mileage: helping them to generate income, raise capital, increase their savings, providing them with a source of cheap labor, increasing their production, offering them opportunities for networking and bulk purchasing, the groups serving as collateral securities or guarantors as well as the display of love and affection. Based on these findings, I develop a theoretical model for nnoboa and rotated susu systems using grounded theory.