Saving for one another: the informal economy of subsistence among the urban poor in Ghana

Abstract

Urban space is monetized. Survival in urban areas is therefore largely dependent on the dictates of methodological individualism, capitalist norms and values, which are invariably linked to rent-seeking and instrumentalism in most urban transactions. The urban poor in Ghana, who are mostly informal sector workers, face enormous challenges in transacting with banks and other financial institutions. This challenge, however, does not prevent them from participating in the money market. They devise strategies of savings and acquiring loans largely on interest-free basis. They also invest in informal activities to financially secure themselves and their future. This paper discusses the mechanisms that regulate the institutionalization of informal savings and investments in urban poor communities in Accra and Winneba in Ghana. It is based on a qualitative research conducted between 2014 and 2016 with 133 participants in four Ghanaian communities using purposive sampling technique. The study employs the concept of equality matching to discuss urban financial common strategies. The paper attempts to debunk the hegemony of the capitalist profit perspective in urban transactions, emphasizing that the urban poor in Ghana mobilize their finances through established social relations with largely no profit-making in mind.