Sierra Leone Needs Assessment Report

FINANCE, COMPETITIVENESS & INNOVATION GLOBAL PRACTICE

FinancialFINANCIAL EDUCATION Education PROGRAM (FEP) Programin Guinea, Liberia, Sierra Leone Program “CASH for ” SierraWORK Leone NeedsSSN Sierra Assessment Leone Report Trainers ’ Manual

June 2018

SIERRA LEONE, June 2017

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Acknowledgements This needs assessment report was prepared by a team led by Siegfried Zottel (Senior Financial Sector Specialist)1 from the World Bank Group’s (WBG) Finance, Competitiveness & Innovation Global Practice and included Fares Khoury (Economist and President of Étude Économique Conseil, EEC Canada). Douglas Pearce (Practice Manager, GFM2B), Massimo Cirasino (Advisor, GFM2B), and Harish Natarajan (Lead Financial Sector Specialist, GFM2B) provided overall guidance to the team. The team is grateful to the peer reviewers of this content – Suleiman Namara (Senior Social Protection Specialist, GSP07), Laura Ralston (Economist, GSP07) and Mack Capehart Mulbah (Social Protection Specialist, GSP07) - for their valuable comments. The team benefited from the valuable inputs provided by Jessica Lee Massie (Financial Education Consultant, GFM2B). The team is also grateful to Julie Lee (Financial Education Consultant, GFM2B) who provided technical advice and inputs at early stages of this project as well as to Nina Rosas Raffo (Senior Economist, GSP07) and Abu Kargbo (Operations officer, GSP07) for their support and valuable contributions at each step of the curriculum design process. The team expresses its deepest appreciation to the Sierra Leonean National Commission for Social Action (NACSA) for their cooperation and collaboration during the needs assessment phase as well as during the testing and piloting of this content. In particular, the team wants to extend its sincere gratitude to the following officials and experts from NACSA who provided invaluable support and strategic guidance: Dr Susan Robert, Idriss Turay, Abraham Kailie, Akheem William Garber, Farama J. Bangura, Musa A.M. Dauda, Abdulai Kamara, Mohamed Lansana, Idrissa Mansaray, Mohamed I. Kamara, Mohamed Ganda Bah, Harold U. Koroma, N’gardie Konteh, Lawrence Sahr Sumana, George Roberts, Moriba Foday, Annie Gbateh. The team would also like to express its gratitude to EEC Canada’s core and field team, led by Isabelle Leyder (Deputy Project Director of the project). We are grateful to Prudence Ndayishimiye, (Country Manager at EEC Canada), to Nicolas Megelas (Regional Coordinator for EEC Canada) as well as all national team members of EEC Canada in Sierra Leone whose efforts and commitments made this project possible. The team’s sincere appreciation is further extended to Linda Bergeron, of Développement International Desjardins (DID) who provided pragmatic guidance during the preparation of this material.

This report was produced under the National Payments System Development in Ebola Affected Countries project (P155002) funded by a grant from Ebola Rapid Response Trust Fund (ERRTF).

1 Can be contacted at: [email protected]

NEEDS ASSESSMENT REPORT SIERRA LEONE

TABLE OF CONTENTS

1 INTRODUCTION ...... 1 2 PURPOSE OF THE NEEDS ASSESSMENT ...... 1 2.1 NEEDS ASSESSMENT MAIN OBJECTIVE ...... 1 2.2 NEEDS ASSESSMENT METHODOLOGY ...... 1 2.2.1 Detailed methodology ...... 1 2.2.2 Sampling of focus group participants ...... 2 3 KEY ELEMENTS ON TARGETED GROUP IN SIERRA LEONE ...... 4 3.1 RAPID EBOLA SOCIAL SAFETY NETS (RE-SSN) CASH TRANSFER BENEFICIARIES PROFILE ...... 4 3.1.1 Profile of beneficiaries ...... 4 3.1.2 Beneficiaries Profile and Curriculum Considerations ...... 4 3.1.3 Financial knowledge and inclusion of beneficiaries ...... 6 3.1.4 Knowledge, skills and abilities of beneficiaries ...... 7 3.1.5 Training considerations ...... 7 3.2 UNDERBANKED AND UNBANKED POPULATIONS PROFILE ...... 7 3.2.1 Profile of beneficiaries ...... 7 3.2.2 Financial knowledge and inclusion of beneficiaries ...... 8 3.2.3 Knowledge, skills and abilities of beneficiaries ...... 8 3.2.4 Training considerations ...... 8 4 MAIN ACTIVITIES OF (FINANCIAL) EDUCATION FOR TARGETED GROUPS ...... 9 4.1.1 Best practices for training of beneficiaries ...... 9 4.1.2 Proposed timeline ...... 9 4.1.3 Potential financial education topics and rationale for recommendation ...... 9 5 VARIOUS MEDIA PARTICIPATING IN FE ACTIVITIES ...... 12 6 CONCLUSION AND RECOMMENDATIONS ...... 12 APPENDIX 1. LIST OF INDIVIDUAL MEETINGS HELD ...... 14 APPENDIX 2. KEY INFORMANT INTERVIEWS - LIST OF PARTICIPANTS AND SUMMARY ...... 15 APPENDIX 3. FOCUS GROUP MEETINGS - LIST OF PARTICIPANTS AND SUMMARY ...... 21

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TABLES TABLE 1. NACSA’S FRAME OF BENEFICIARIES OF THE RE-SSN PROJECT FROM PORT LOKO AND BO DISTRICTS 2 TABLE 2. BENEFICIARIES PROFILE AND CURRICULUM CONSIDERATIONS 4 TABLE 3. ACTIVITIES AND ESTIMATED TIME REQUIRED 9 TABLE 4. MAIN TOPICS BY TARGET GROUP 10 TABLE 5. LIST OF INDIVIDUAL MEETINGS HELD 14 TABLE 6. SUMMARY OF FOCUS GROUP DISCUSSIONS HELD IN SIERRA LEONE – OVERVIEW OF BLOCKS 16 TABLE 7. RAPID EBOLA SOCIAL SAFETY NETS (RE-SSN) CASH TRANSFER BENEFICIARIES – FINANCIAL CAPABILITY FOCUS GROUP DISCUSSION 22

FIGURES FIGURE 1. DISTRICTS AND CHIEFDOMS SELECTED FOR THE FG DISCUSSIONS WITH RE-SSN BENEFICIARIES 3 FIGURE 2. FINANCIAL LITERACY TRAINING CASCADE 7

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1 INTRODUCTION

The recent Ebola crisis in Sierra Leone, Liberia and Guinea required mobilization of a large number of health and other related workers (e.g. contact tracers) to respond to the crisis. In addition, to deal with shock associated by the disruption of economic activity, authorities needed to ensure and/or expand the social support programs. In both cases, a key challenge was to provide swift, secure, auditable and low-cost disbursement of payments to recipients throughout the country. In response to these challenges, the World Bank Group (WBG) launched the project Supporting National Payment Systems in Ebola Affected Countries (SNPS), to provide technical assistance to current interventions in the Ebola Emergency Response and future initiatives as the countries recover from the crisis. The Financial Capability component of the SNPS aims at improving the chances for successful implementation of payments and increasing confidence in new payment approaches (phone-based, cards, etc.). Under this Financial Capability component, the WBG will provide targeted technical assistance to social protection programs in the three countries to develop tailored financial education modules for their target populations and strengthen the capacity of their trainers to effectively deliver financial education. Against this background, the Financial Education Content Development Project in Sierra Leone, Liberia and Guinea aims to develop tailored financial education modules for the target populations all three countries. The primary target populations across the three countries are: • beneficiaries of social protection programs, such as cash transfers and public works (cash for work) projects, and, • unbanked and under-banked populations

2 PURPOSE OF THE NEEDS ASSESSMENT

2.1 NEEDS ASSESSMENT MAIN OBJECTIVE

The needs assessment portion of the Financial Education Content Development Project in Sierra Leone, Liberia and Guinea outlines the needs specific to each country in terms of financial inclusion. The main objective of the needs assessment was to conduct a detailed qualitative analysis of and make recommendations for optimal financial education delivery mechanisms (i.e. classroom training, multimedia presentation, individual consulting, etc.) and financial education module content for each country, allowing for the development of national-scale financial awareness or sensitization campaigns for consumers. The needs assessment will furthermore outline the expected outcome of additional financial education campaigns such as, for example, potentially promoting fundamental principles for sound personal/household money management, raising awareness on the types of financial services available, and sensitizing the public on their rights and responsibilities as consumers of financial services. The module on financial education will either be added to or expanded under already existing face-to-face training programs targeting beneficiaries of social protection programs.

2.2 NEEDS ASSESSMENT METHODOLOGY

2.2.1 DETAILED METHODOLOGY In order to thoroughly conduct the needs assessment phase of the Financial Education Content Development Project in Sierra Leone, Liberia and Guinea, the following detailed methodology was used. The process involved qualitative research in the respective countries, consultations with local stakeholders, and desk-based research. 1. local and international best practices on financial education delivery mechanisms were investigated

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2. an assessment of the capacities of the various implementation partners in each country was performed to deliver financial education trainings (including staff capacity and technological constraints) 3. qualitative research was performed by way of informant interviews with key stakeholders such as the Central Banks, the National Commission for Social Action (NACSA) and financial service providers, as well as through focus group discussions with beneficiaries of various of social protection programs, and unbanked and under-banked populations 4. existing financial education programs in all three counties were identified that were relevant to target populations and could be scaled-up or complemented with a new module, and, 5. field research was performed in order to appropriately contextualize the materials for the local population

2.2.2 SAMPLING OF FOCUS GROUP PARTICIPANTS Sampling of participants for the SSN beneficiaries focus group discussions was drawn using RE-SSN beneficiaries (considered a proxy for SSN beneficiaries) from the districts of Bo and Port Loko. From the National Commission for Social Action (NaCSA)’s list of 449 beneficiaries, 50 were sampled to participate in 4 focus group discussions of approximately 10 persons each (over sampling of 10 participants was done in case of refusals). Table 1 outlines the distribution of participants by district, chiefdom and age group while Figure 1 below shows districts and chiefdoms from which participants were chosen to participate in the focus group discussions. Furthermore, given all participants of the focus group discussion for RE-SSN beneficiaries were unbanked (no account at any financial institution, formal or informal) or underbanked (no formal account, light use of informal saving club such as Osusu), answers were also used to reflect the reality of the unbanked and underbanked

TABLE 1. SELECTION OF BENEFICIARIES OF THE RE-SSN PROJECT FROM PORT LOKO AND BO DISTRICTS

20- 40 41-60 61- 90 District Sex Chiefdoms Localities Total years years years Ngeagboiya 0 0 1 Bumpe Ngao Bumpe 0 0 0 M Gelehun 0 0 0 Tikonko Sembehun 17 0 0 0 Bo District 22 Ngeagboiya 0 2 0 Bumpe Ngao Bumpe 1 6 3 F Gelehun 0 3 1 Tikonko Sembehun 17 1 2 2 Konta 0 0 0 Maforki Robat 1 0 1 M Konta-kuma 0 1 0 Masimera Mayombo 1 0 1 Port Loko District 20 Konta 0 1 1 Maforki Robat 1 2 0 F Konta-kuma 1 2 2 Masimera Mayombo 2 3 0 Total 8 22 12 42

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FIGURE 1. DISTRICTS AND CHIEFDOMS SELECTED FOR THE FG DISCUSSIONS WITH RE-SSN BENEFICIARIES

Map of Sierra Leone

Map of Port Loko chiefdoms

Bo chiefdoms

Source: Adapted from various sources: https://sabisalone.wordpress.com/2011/10/sl_chiefdoms

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3 KEY ELEMENTS ON TARGETED GROUP IN SIERRA LEONE

3.1 RAPID EBOLA SOCIAL SAFETY NETS (RE-SSN) CASH TRANSFER BENEFICIARIES PROFILE

3.1.1 PROFILE OF BENEFICIARIES The Sierra Leone Social Safety Net (SSN) Project (“Ep Fet Po (Support to Fight Poverty)”) is a program funded by the World Bank, UNICEF and the Government of Sierra Leone to provide unconditional cash transfers to extremely poor households in Sierra Leone. The development objective is to establish the key building blocks for a basic national safety net system and to provide income support to extremely poor households in Sierra Leone. Cash transfers under this project target extremely poor households, giving priority to those affected by the Ebola Virus Disease (EVD) and are made to the female member in the household with the most knowledge or responsibility for household spending and in decisions related to maternal and child health. However, given the SSN project had not yet begun when focus group discussions were taking place in Sierra Leone, RE-SSN (Rapid Ebola Social Safety Nets) beneficiaries were chosen to represent them instead. Furthermore, and to accurately represent the future beneficiaries of SSN Cash Transfers, 90% of participants to focus groups with RE-SSN beneficiaries were women heads of their household. The large majority of participants were also illiterate.

3.1.2 BENEFICIARIES PROFILE AND CURRICULUM CONSIDERATIONS

TABLE 2. BENEFICIARIES PROFILE AND CURRICULUM CONSIDERATIONS FOR SSN BENEFICIARIES

Profile Curriculum Recommendation / Consideration - Content should have a basis of managing the cash transfer as part Unconditional cash transfer beneficiaries in Sierra Leone under the SSN program, approximately of planning (simple budgeting) 12,000 households in approximately 400 participating communities in the four districts: Kono, Bombali, Moyamba and Western Rural - Content should not take basic financial knowledge for granted but Extremely poor households offer refresher modules to ensure all participants are on the same page - According to good practices, content should be presented in an Females in household with most decision-making authority will receive transfer, most are illiterate auditory and/or visual manner, very simple, and not require reading and writing - (As per recommendation in report) Linkage of beneficiaries to basic literacy and numeracy programs could be important in growing past most foundational skills - Financial education that builds basic skills is likely to help with the Low levels of confidence in general and specifically related to money management issues, and feeling issue of confidence, as long as it is designed with realistic learning that they cannot negotiate on financial issues objectives that will allow participants to truly experience small “wins” - Add basic financial negotiation skills (not bank level, but market level) to sessions

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Profile Curriculum Recommendation / Consideration - Set specific financial goals for their cash transfer and other income Largest income sources are the cash transfers with some supplemental income from farming - Start sessions on planning with an overview of income sources and amounts– that is, separate out sessions on earning and Low knowledge of day-to-day spending needs spending before moving on to budgeting. Seasonality and/or (lack of planning behaviors on any timeframe) irregularity of income flow should be taken into consideration with Short-term perspective on money management, planning. little long-term planning (reactive vs. proactive - Basic record-keeping (even with “X”) should be part of the behaviors), spend money “before” it comes in planning section of the curriculum - Very low level budgeting sessions, thinking first about income flow – quarterly basis for SSN cash transfer and/or seasonal basis for farming income - then breaking down income into smaller planned increments,.e.g. what can roughly be spent per month, week etc. - Build savings into budget as part of proactive risk management strategy - “Osusu” savings clubs should be formed with beneficiaries as a Save mostly at home and deal in cash (and express a preference for managing money in this way to provide them access to organized saving. Saving together way due to access) as a group could be a teachable moment, or an opportunity to get people to act upon what they have learned during the financial Little bank access, with banks and formal financial service providers located far from beneficiaries education training (as with similar CARE VSLA programs, for example) - An early session on short- and long-term goal-setting to set a rationale in the minds of participants for being part of an Osusu club is necessary - A session with a comparison of saving at home vs. saving in a club, and the advantages and disadvantages of each, should be developed - A session on saving for certain, but unexpected, expenses that will arise - Simple investment should be part of the content (whether by Living mostly off of cash transfer money, hand to mouth, plan expenditures months in advance, household or by group) as well as IGAs, as income building will be make decisions to spend less on necessities like essential for financial stability food to put money away for future risks - At the end of the program, a session on introductory bank services Low understanding of formal financial products and services (combined with low access) could be considered, provided access to banks is available in the county where training is given - At the end of the program, a session on basic borrowing could be Borrow from relatives and friends when the need arises (0 borrowing from formal institutions) considered - Start education delivery in workshops overseen by NaCSA Primarily get new information from neighbors, local councilors and village chiefs (low access to mobile - SSN project team should also explore alternative delivery linkages phone and to radio reported) with other like-minded or relevant partners, such as Concern, if these organizations are working in the same communities as the SSN project. - Consider training local councilors and village chiefs during the TOT phase, and make sure they are part of at least some level of the training, given their status in the community as information hubs

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3.1.3 FINANCIAL KNOWLEDGE AND INCLUSION OF BENEFICIARIES

Use of media and communication tools In general, most participants do not have access to mobile phones (due to high costs of phones, low access to electricity, poor mobile network, etc.). Many participants also said they do not have direct access to radios, which does not facilitate their access to information. As a strategy for adaptation to this problem, they get information from neighbors or local councilors and their village chiefs.

Saving and Use of Financial Services Most participants are also unbanked and mentioned their low income and the absence of banks close to where they live as a major obstacle. Despite most of them managing farms to supplement their income, the cash transfers represent their main source of income. A World Bank report on the financial sector of Sierra Leone confirms that “transactions are mainly cash based with very limited use of electronic systems”. Though the Bank of Sierra Leone has installed modern payment systems in 2013, this effort has yet to trickle down to retail payments. Furthermore, settlement processes across banks are not yet automated thanks to lack of a “national switch system and inadequate power and IT systems”. It is therefore not surprising that only 15% of the adult population are thought to have an account with a formal financial institution2. Given their profile and lack of knowledge and understanding of formal financial products, participants mostly save money at home as they feel this is the most secure method allowing them to get access to their cash at any moment without constraints. Purchases are typically paid for exclusively in cash, exacerbating the perceived absence of need for products that constrain spending freedom. The prevalent financial behavior of participants is often reactive, responding to immediate problems and needs with little time to consider options, trade-offs, and longer-term consequences. When participants do decide to borrow funds because they have no other choice, they mostly go to their relatives or friends to do so. None of the participants tried applying for a loan at an institution because they feel they don’t have enough money nor do they understand how to go about applying.

Spending, Money Management and Budgeting For most participants, money is spent as it comes in with only very few of them being able to set money aside, yet most of them having a clear idea of what they need to spend money on. Spending is typically decided a few weeks in advance, even though most participants live from “cash flow to cash flow” and over 70% of them confirmed that before money even came in it had already been spent. Nevertheless, some participants understand the need to put a portion of their income aside for unexpected expenses and try to set aside even some money. Participants with a farm declared using the money received for food and agricultural purposes while others use it to pay school fees. Some participants who have saved in the past indicate that they keep the saved money at home. The money is usually saved to hire agricultural workers during high seasons. None of them have money deposited in a financial institution. Most participants do not set aside money for the unexpected and none of the participants have money in any financial institution because none of them are clients. Some saved money at home while others do not save at all. All of them admitted that while emergencies do not occur frequently in their families, they do not know how they could manage an emergency if it did occur. Some participants said they save money but not on a regular basis and estimated these to be between 5% and 15% of their earnings. Those that mentioned not saving, cited lack of funds as the main obstacle. Unfortunately, most participants mentioned they often have nothing left after paying for food, agriculture and household items. Few beneficiaries (less than 15%) know how much money they have for day-to-day spending, while most (over 80%) do not know how to plan their day-to-day expenses.

2Sierra Leone: Financial Sector and Access to Credit, World Bank Group, Cyrus P. Talati, p.4

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Preparing for the Unexpected and Borrowing Furthermore, local communities do not often know to save for future needs. According to them when unexpected things happen, they will use informal channels to borrow money even if they have to pay high interests to reimburse their debts. Participants also said that they borrow money mainly to cover basic needs (food and children school fees) and usually borrow more money than their earnings. Money borrowed from friends or relatives however, does not usually accumulate interest, at most gifts in kind are traditional additions to reimbursements. They therefore often try to borrow from friends to increase their business and benefit from advantageous terms. Something interesting mentioned by participants is that if they are not able pay money borrowed, they may do “hard labor” to pay off the debt.

3.1.4 KNOWLEDGE, SKILLS AND ABILITIES OF BENEFICIARIES A related issue that emerges from the assessment of the needs in FE is the sense of powerlessness many participants feel, especially women, in dealing with financial issues in banks and in their business relationships. This affects not only to knowledge of financial concepts, but also manifests itself as a lack of negotiation skills. Many participants mentioned they would be interested in learning more about day-to-day money management as well as formal saving and borrowing products. Participants also revealed that they learned about managing money informally through personal experiences and through their family, friends and peers rather than through formal education. While most recognize the negative consequences of poor money management and the importance of financial literacy, they tend to see “financial education” as something that is inaccessible to them.

3.1.5 TRAINING CONSIDERATIONS From the point of view of training, workshops for SSN beneficiaries were already launched by NaCSA who are spearheading the initiative. Beneficiaries completed the first training module, that is the SSN program orientation. The financial education will be delivered as part of face-to-face workshops on a quarterly basis by Community Identification Committee (CIC) representatives, who are already working with the SSN project and will also deliver the SSN project overview sessions as part of the workshops. One CIC representative per participating community will participate in the training delivery. The financial literacy training cascade is illustrated in Figure 2.

FIGURE 2. FINANCIAL LITERACY TRAINING CASCADE

NaCSA District CIC World Bank NaCSA Master Beneficiaries Coordinators representatives Group Trainers (12,000) (14) (400)

NaCSA trainers typically have various profiles, depending on their level. The person responsible for training at a district level has a university degree, while other CIC trainers are mostly social workers with college level education. Aside from this group of professionals, local counselors are mostly chosen by their community with very different levels of training.

3.2 UNDERBANKED AND UNBANKED POPULATIONS PROFILE

3.2.1 PROFILE OF BENEFICIARIES Underbanked and unbanked populations are an important reality in Sierra Leone, given in 2014, only 14.1% of the adult population declared using formal financial institutions3. Focus group discussions targeting

3 World Bank report, Demirguc-Kunt et al., 2015, http://data.worldbank.org/indicator/WP_time_01.1?locations=SL 7 NEEDS ASSESSMENT REPORT SIERRA LEONE specifically Re-SSN Cash transfer beneficiaries included participants that were considered unbanked and underbanked. This sub-group of beneficiaries were also profiled in order to develop education modules and solutions catered to their specific reality. Participants considered underbanked vary in age with the youngest having 20 years and going up to 65 years old. They have a low level or no education at all and are illiterate. Most of them have an occupation though very few are able to develop it; their level of income is generally quite low with many living off monies received from the cash transfers or from their families.

3.2.2 FINANCIAL KNOWLEDGE AND INCLUSION OF BENEFICIARIES

Saving and Use of Financial Services As meetings with the Bank of Sierra Leone have revealed, Sierra Leoneans have modest savings habits and unfortunately don’t tend to understand the need to save despite their low income. This also seems to be exacerbated by cultural practices that encourage lavish spending on traditional ceremonies and numerous statutory holidays. People are therefore desperate to take out loans to keep up with their obligations but don’t understand the right way to do this. Very few participants declare being able to set money aside on a regular basis, mostly because of their very low income. Those that do set money aside, do so at home and given the very definition of this group of participants, do not use any formal mechanisms or even mobile money account, given the lack of mobile coverage in their areas. Participants mentioned their expenses are always paid in cash, to justify why they don’t think having their money tied up in any sort of account or saving club is a wise idea. Others also explained they don’t understand the way accounts work and think they need much more money for these products to make sense for them.

Spending, Money Management and Budgeting Most participants understand the need to track their savings but declare not usually knowing how much money they had available for daily spending. Beneficiaries receiving cash transfers understand the importance of making this money last until the next cash flow, but the end of these transfers would put them in a dire situation. When unexpected expenses do arise that participants are unable to cover, they declared turning to friends or family for support. Not being a client of any financial institution or savings club means they are unable to get a loan elsewhere.

3.2.3 KNOWLEDGE, SKILLS AND ABILITIES OF BENEFICIARIES Unfortunately, underbanked or unbanked participants lack important knowledge, skills and abilities in terms of financial inclusion, further exacerbating their isolation and preventing them from improving their situation. It is therefore of prime importance for the training module to take into account this fraction of the population and give enough information on basic financial concepts (such as the reason for saving, and using accounts instead of keeping money at home) as well as more advanced ones (such as creating and following a budget).

3.2.4 TRAINING CONSIDERATIONS

Mobile Money Sensitization Campaign A radio mobile money sensitization campaign will be developed to adequately reach the unbanked and underbanked population in Sierra Leone and explain the benefits of the service for keeping aside and tracking money, spending, simplifying purchases as well as sending and receiving money across the country. The various efforts of many local development partners such as the FAO, World Food Program, and CONCERN, to name a few, could be pooled to this global communication effort in order to reach as many people as possible. In addition, some targeting of communities may help deliver additional custom- training directly at various schools, at community conversation clubs developed by CONCERN, and finally piggybacking on women empowerment activities which use various communication channels such as

8 NEEDS ASSESSMENT REPORT SIERRA LEONE awareness campaigns and newspapers advertisement campaigns would be an effective way for this sensitization campaign to reach additional people.

4 MAIN ACTIVITIES OF FINANCIAL EDUCATION FOR TARGETED GROUPS

4.1.1 BEST PRACTICES FOR TRAINING OF BENEFICIARIES The team at NaCSA will deliver the financial education module for SSN Cash Transfers beneficiaries as they have experience in delivering such trainings, not to mention the financial education module would be delivered during the training that beneficiaries will attend as part of their obligation to participating in the project and receiving cash transfers. The training for SSN beneficiaries will cover three topics: SSN program overview, health and nutrition and financial education. As for the unbanked and underbanked populations outside beneficiaries of the SSN program, the best way to reach them will be through partnerships with development organizations and NGOs currently organizing discussion groups and events on other topics. The financial education module will be delivered alongside these various efforts. More importantly, a mobile money sensitization campaign will furthermore be developed in order to explain the main advantages and outline the simplicity of using this important service in Sierra Leone.

4.1.2 PROPOSED TIMELINE Table 3 below presents the remaining activities until the Training of Trainers and an estimate of the time they require to complete. It is noteworthy to mention that the availability of stakeholders affects directly the lead time and completion of each of these tasks.

TABLE 3. ACTIVITIES AND ESTIMATED TIME REQUIRED

Activity Estimated time required Content development 2 weeks Content translation 2.5 weeks Pilot 1 week Training of Trainers 1 week

4.1.3 POTENTIAL FINANCIAL EDUCATION TOPICS AND RATIONALE FOR RECOMMENDATION Main topics by target group should include the various potential topics outlined in Table 4.

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TABLE 4. MAIN TOPICS BY TARGET GROUP

Program Objectives Profile / Observations during FGs Rationale Potential Topics (country) characteristics of or KI or other basis – on target group attitudes, behavior or capabilities

Social Protection Beneficiaries

SSN To effectively manage their SSN Cash transfers The large majority were Participants are The benefits of financial inclusion and the Cash Transfers financial resources and build beneficiaries: Female women heads of their underbanked with low difference between accumulating cash «under assets which can help them member of extremely family and mainly illiterate. schooling and literacy and the mattress» and interest earning accounts Sierra Leone to reduce their vulnerability poor households, don’t understand the They work in agriculture and use cash transfer to including those affected advantages of dealing with and use their savings to Basic numeracy skills invest in human capital, e.g. by the Ebola Virus banks. grow their business health and nutrition, child Disease (EVD), with the education most knowledge or Keeping track of expenses and money saved in Beneficiaries do not responsibility for Osusu and how to keep and use records on understand the need or the household spending money matters way to set financial goals or and in decisions related manage their money on a to maternal and child daily basis health. Budgeting and managing money on a weekly basis, prioritizing spending

As focus group participants have mentioned they do not Managing cash flow to meet day-to-day needs plan or budget household expenses, How to manage debt and credit and how to build trust in a community and a sound Focus group participants reputation to be able to receive a loan when have mentioned their saving needed, habits are close to inexistent Options for saving mechanisms and strategies Beneficiaries often need to and how to evaluate them borrow money but lack the tools and knowledge to do so adequately Preparing for unexpected (and expected) expenses and how to normalize fluctuating income

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Program Objectives Profile / Observations during FGs Rationale Potential Topics (country) characteristics of or KI or other basis – on target group attitudes, behavior or capabilities

Unbanked and Underbanked

Broad base of Increase awareness and Participants considered The unbanked have very As part of the mobile money The benefits of financial inclusion and the consumers - understanding of mobile unbanked / limited means and sensitization campaign, offer difference between accumulating cash «under low-income money/e-payments and underbanked vary in knowledge, not to mention a complete guide to Mobile the mattress» and interest earning accounts consumers in potential ways it can address age with the youngest lack of access to formal Money including its use for and tying this into mobile money as a tool to particular money management needs having 20 years and financial services sending, receiving money, achieve this going up to 65 years Sierra Leone Lack knowledge, skills and old. abilities of financial Increase trust and Tie in the services offered by mobile money to They have a low level inclusion, isolating and willingness to try using financially sound behaviors such as keeping or no education at all preventing them from The underbanked do not mobile money and ease money aside, prioritizing spending, keeping and are illiterate. improving their situation have understanding of the acceptance of non-cash track of expenses need for or advantages of payments Most of them have an saving occupation though very

few are able to develop Ways in which it can be used to manage and it; their level of income store money and potential benefits

is generally quite low with many living off Many underbanked people monies received from do not own a mobile phone How to keep transactions safe, e.g. the cash transfers or safeguarding PIN code from their families. Explain a mobile money account should only be shared with great caution, and suggest where low cost phones can be found

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5 VARIOUS MEDIA PARTICIPATING IN FE ACTIVITIES

In order to ensure that financial education activities have the best level of success possible, it would be important to create picture cards for participants to take home or other visual material illustrating and recapping various financial education subjects discussed during training sessions and hang them in public assembly areas such as church halls, town halls, schools etc. These should also eventually include the name and contact details of the local trainer or of another competent and designated person so that questions on the subject may be answered. These posters should also be displayed in other public areas where radio mobile money sensitization campaign programs will be aired, always in main assembly points, but without contact details, in order to illustrate concepts discussed during radio segments. These posters should take the format of a storyboard and be easy to follow, with either no or very little text, recapping the information given during the program. In many ways, an idea to explore, that would serve as reinforcement, would be to have the posters and story lines, illustrate the radio sketches that would form the radio program. Furthermore, the various efforts of the many local development partners such as the FAO, World Food Program, and CONCERN, to name a few, could be pooled in to this global communication effort in order to reach as many people as possible. In addition, some targeting of communities may help deliver additional custom-training directly at various schools, at community conversation clubs developed by CONCERN, and finally piggybacking on women empowerment activities which use various communication channels such as awareness campaigns and newspapers advertisement campaigns would be an effective way of reaching additional people. The mobile money sensitization campaign programs will take the form of short radio segments lasting between 3 and 5 minutes and aired on community radios, then expanding to the entire country. This campaign should cover topics such as the reasons and advantages of using this type of account, how to use a mobile money account, how to deposit money in it, how to withdraw money from it, how to pay for good or services using the mobile money account and how to transfer money using the mobile money account.

Key success factors expressed It will be important to evaluate the success of this initiative. First, the stakeholder's feedback on the financial education initiative as being successful or unsuccessful. Second, trainers should visit the places where posters will be displayed or assembly points, and the various venues where the training will be given, to get feedback from the population and ensure the trainings are understood by the intended audience.

6 CONCLUSION AND RECOMMENDATIONS

In order for the financial education program have the intended scope and success, the first step will be to focus on the training of Re-SSN Cash Transfers beneficiaries as this group of beneficiaries will already be receiving training in order to get their cash transfers. Mainly, it will be important to focus financial education topics on the importance of financial inclusion, on numeracy skills, on saving, on budgeting and managing day to day spending, on managing risk, on managing credit and on preparing for expected and unexpected expenses. These topics will give recipients the basic tools necessary for them to improve their situation and manage their cash transfers in the most beneficial way possible. These topics will form part of a 2-hour training session covering topics in an interactive way, ensuring that participants are asked to explain and demonstrate what they have been taught. The financial education will be delivered as part of face-to-face workshops on a quarterly basis by CIC representatives chosen by NaCSA, who are already working with the SSN project and will also deliver the SSN project overview sessions as part of the workshops. One CIC representative per participating community will participate in the training delivery.

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A mobile money sensitization campaign taking the form of short radio segments lasting between 3 and 5 minutes will also be developed and aired on community radios, then expanding to the entire country. Partnerships with development organizations and NGOs will be sought to deliver these mobile money sensitization materials alongside their various efforts. Constant feedback from stakeholders and beneficiaries of the financial education programs will be sought in order to ensure success and adjust content depending on results.

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APPENDIX 1. LIST OF INDIVIDUAL MEETINGS HELD

TABLE 5. LIST OF INDIVIDUAL MEETINGS HELD

Names Institutions District/ Town

Abdul Wurie NERC Freetown

Daniel Osei Antwi SPLASH Freetown

Rami Dleikan Africell Freetown

Richard Ghoussoub Africell Freetown

Joseph Saffa Tengbeh Airtel Freetown

Soriba Yansanneh NACSA – Port Loko District Port Loko

Hawanatu Turay NACSA – Assistant Coord. Port Loko Port Loko

Moussa Daouda NACSA – Bo district Bo

Mr Paul Idriss Councillor Masimera chiefdom Port Loko

Mr Hassan Kamara Councillor Maforki Chiefdom Port Loko

Mr Michael Mowendeh Councillor - Bumpe Ngao chiefdom Bo

Mr Mohamed Jalloh Counillor – Tikonko chiefdom Bo

Mrs Fatimata Mansaray Councillor - Sembehun 17 Bo

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APPENDIX 2. KEY INFORMANT INTERVIEWS - LIST OF PARTICIPANTS AND SUMMARY Table 6 presents summaries of key informant interviews held in Sierra Leone, for reference purposes.

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TABLE 6. SUMMARY OF KEY INFORMANT INTERVIEWS HELD IN SIERRA LEONE – OVERVIEW OF BLOCKS

Key Informant Block B1: (if applicable) Block B2: (if applicable) Block B3: (if applicable) Block B4: (if applicable) Information Identify the needs of one or both groups Identify, if any, existing Provide vision/perception on key issues to Feed a benchmark approach + main perceived obstacles of mobile education program (financial be addressed when offering mobile money, to analyze and build upon Main topics money usage and general behavior vis- or not) targeting one or both electronic payment (Operational lessons learned on mobile discussed a-vis money usage groups of project’s framework: delivery mechanism, main money operational framework during the beneficiaries + provide key obstacles faced, needs and gaps...) and financial education meeting success factors in delivery content program mechanisms to adopt, identify development/awareness pending local needs and gaps campaign delivery • Beneficiaries cash out only. Concept of • Main complaints are customers say they didn’t AFRICELL saving is not there. Africell trained GT bank receive their PIN, but they didn’t know how to staff and encouraged the staff to upsell their change their PIN. Africell had to reset their PINs bank services to hazard pay recipients. But for some customers every month. Customers still recipients all cashed out everything. keep forgetting the process. Africell shows customers how to change PIN through flyers and “I can’t see them saving. One week they posters. Agents are trained to teach customers receive their salary, and then ask for help the about PIN. But still customers always forget what next week. You can see at any location, their PIN is. young people dance, drink alcohol and spend money. Every corner, they party, but do not Sometimes customers complain that their PIN save. People take care of things like, rent, doesn’t work and this is because there is a food and school fees”. blockage in the network. Blockage can last for 5- 10 minutes and it occurs because there too many MM transaction requests from customers happening at the same time, during the hazard pay payout period. • Banks” are perceived as only for high level • Advise Central Bank to sit with AIRTEL • MNOs wouldn’t contribute resources to a public people”. Need to have mass sensitization by sensitization campaign unless they see that they MNOs to develop a sensitization commercial banks and show people that get something out of it.” campaign – large scale. banks accounts are for everyone. • • FE could be done at the • “People don’t save. No mindset for saving.” Airtel trained brand ambassadors in groups and secondary school level and post- Salaries completely gone in one week. Have sent them into different region, secondary no awareness of saving. They also have so • Example of messages to encourage people • The Bank of Sierra Leone and many demands on their money. saving: “ Keeping your money on your mobile MNOs needs to look at how to • Airtel also had a call center where they called phone keeps you from “the temptation of ensure a certain percentage of Airtel customers to try to convert them into spending randomly.” If you have cash in your money [in the financial system] MM customers. Also sent SMS, e.g. steps for pocket, you might spend your money on goes through the MM system. changing pin, to customers. However, some anything”. people don’t read the messages because they • Face to face communication is much better than Yes, there are problems with MM think they are marketing messages mass media. ecosystem, but Central Bank needs to get involved

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Key Informant Block B1: (if applicable) Block B2: (if applicable) Block B3: (if applicable) Block B4: (if applicable) Information Identify the needs of one or both groups + main Identify, if any, existing Provide vision/perception on key issues to be Feed a benchmark approach perceived obstacles of mobile money usage and education program (financial addressed when offering mobile money, to analyze and build upon Main topics general behavior vis-a-vis money usage or not) targeting one or both electronic payment (Operational framework: lessons learned on mobile discussed during groups of project’s delivery mechanism, main obstacles faced, money operational framework the meeting beneficiaries + provide key needs and gaps...) and financial education success factors in delivery content program mechanisms to adopt, identify development/awareness pending local needs and gaps campaign delivery • No formal mechanism for saving, no savings culture, • Use small community-based GUARANTEE • Main MM. users are mostly unbanked population. they don’t have enough money to save. They use organizations and TRUST BANK Banked people do bank transfers instead of MM. Osusus, which is a group of 10 people who contribute associations, like Osusu But now with Airtel Money accounts linked to to a pool of money until it’s time to withdraw. groups. They can spread the bank accounts, the use of service is increasing • The target group always borrows in either goods or messages to their members. among the banked. cash. They use informal moneylenders. Sometimes they must pay as much as 20% on top of loan You should start with small at the • Education of consumers how to use MM and how principal – the lenders don’t call it loan interest, “but it community level and then scale it makes lives easier. is a kind of a spread.” up to mass media. • You need to look at the retail market. The main users will be petty traders who need turn over their money quickly. They can’t wait at bank branches to deposit and withdraw money. • GT bank has planned who to target first with their MM service: SMEs, and how they will do the sensitization: through all media, send brand ambassadors to go to market places and work places. • They have a poor savings habit. People should still • UT bank and other banks are • Need to teach FE in schools BANK OF save even if they’re not earning enough money. Poor doing FE. Most MFIs are doing and target workers, both SIERRA savings behavior is linked to cultural practices. training also. informal and formal. Should LEONE Example: If a father will initiate his 3 sons into secret • West Africa is currently behind train microentrepreneurs. societies, he will spend a lot of money. Elaborate in MM compared to other • We need to formalize the naming ceremonies are another big expenditure. regions of Africa. The informal sector – to bring They have no idea about budgeting. workshop was a learning illiterate people to feel • People are so desperate to take loans. The rates are exchange with South Africa, comfortable and welcomed in so high, but people don’t know. Lenders (MFIs) do East Africa on their financial institutions. reckless lending which feeds into people’s experiences with MM. Need for It takes two weeks to process overdebtedness. Even elites don’t know how to use stakeholders to come on a loan at a bank, but that is banks loans; they use the loan money for non- board. too long a waiting period for a productive use, e.g. buy a big car. microentrepreneur • [“Rotating savings and credit associations (ROSCAs) are common throughout the country and serve as a mechanism for people to save for medical, dowries, or school fees.” FE Framework”]

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• Our trainers were working in topics: the health sector and do not • We need to deliver tailored Financial - How to manage money, have an adapted experience in Education content through - How encourage savings financial education. appropriate communication tools. behavior, - How to using savings to invest, - How to manage small business, etc.

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Key Informant Block B1: (if applicable) Block B2: (if applicable) Block B3: (if applicable) Block B4: (if applicable) Information Identify the needs of one or both Identify, if any, existing education Provide vision/perception on key issues Feed a benchmark approach to groups + main perceived obstacles of program (financial or not) to be addressed when offering mobile analyze and build upon lessons Main topics mobile money usage and general targeting one or both groups of money, electronic payment (Operational learned on mobile money operational discussed behavior vis-a-vis money usage project’s beneficiaries + provide framework: delivery mechanism, main framework and financial education during the key success factors in delivery obstacles faced, needs and gaps...) content program meeting mechanisms to adopt, identify development/awareness campaign pending local needs and gaps delivery • Targeted groups were mostly health • Essentially the rural uneducated • It seems too early for lessons learnt in • To ensure a successful replication we NERC Workers (men and women) mobilized people. Our initiative helped them financial education initiatives. need to diversify the training content to figth Ebola within the country. They and contributed effectively to be and reaching all the needs of different are from all categories from doctors to familiar in using of electronic • However, education program could categories of Health workers uneducated workers, rurals and payment. achieve more to promote mobile money (educated and uneducated) e.g. urbans. Banked and unbanked also. • We delivered basic trainings for services. introduce training on how to use those who had no received yet savings, to manage small business, • Heath Workers received consistent money in rural area etc. amount and they use it for education, • By using radio programmes, housing and business also posters with highlights of the main steps and sensitization of beneficiaries. Specific text, TV, radio, how to manage budget, etc. • Splash mobile money services do not • To ensure widespread of the mobile • Ensure the mobile coverage (close to SPLASH have saving service. Actually, the money solution, we need: universal). No mobile network in rural Splash members can pay some bills • To offer mobile phone for cheap to large area for now. like DSTV and electricity. “We have to people in provinces • Strengthen the distribution system develop the system to allow large • To extend the mobile network coverage (agent network to support mobile opportunities to our members for their (universal) money. With enough liquidity). day to day purchases”. • To extend the electricity network also, • Support the IMF in mobile money • Actually, people just want to cash out because large people in rural area do not solutions (they are closed to start with their Electronic money,. If we can get have access to electricity mobile money services (not yet started the terminal to use mobile day to day • To develop solar energy in rural area as with us) and villages associations (but purchase, maybe people can achieve alternative, and do not have enough cash). other financial goals like saving and • To increase the number of our agent • Community banks also are active, but borrowing for example. network in the country. Splash have to provide liquidity. • To develop also linkages between • Ecobank, Zenith bank and GT bank various stakeholders involved in the (our main partners (only in urban mobile money solutions (interoperability areas. But Ecobank and GT bank are between MMOs) trying to get their own mobile money services.

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Other limits to the expansion of mobile • The absence of a saving culture is banking are: linked to • Low revenue in poor households • Weak coverage in remote areas which doesn’t allow for saving or • High cost of mobile devices putting aside money • Absence of mobile money financial • Culture and daily life promotes the products other than money transfer use of cash services • Weak presence of financial • Absence of electricity outside institutions in rural villages and secondary urban centers remote areas • Low level of literacy particularly in poor • Lack of financial education areas and beneficiaries of the cash program in the country transfer program

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APPENDIX 3. FOCUS GROUP MEETINGS - LIST OF PARTICIPANTS AND SUMMARY

Table 7 presents summaries of focus group discussions held in Sierra Leone, for reference purposes.

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TABLE 7. RAPID EBOLA SOCIAL SAFETY NETS (RE-SSN) CASH TRANSFER BENEFICIARIES – FINANCIAL CAPABILITY FOCUS GROUP DISCUSSION

Group General life and access to financial Day to day money management Savings behavior / Planning for Borrowing behavior / institutions unexpected expenses Concluding questions

General characteristics: Before receiving cash transfers, money was Savings behavior: Borrowing: earned: Group 1 • 3/10 participants are heads of their • Only 2/10 declared having saved • 10/10 participants declared household • 10/10 own farm money in the past 12 months and said they did not borrow money Port Loko District • 10/10 participants earn money on a Households spend most of their money on: they set aside 15% of their income from any financial regular basis from the cash transfer • The 8/10 participants who don’t save institution in the past 12 • All participants plan their expenditures with program and receive their money declared their low income and high months food is the top expenditure for all with 5/10 regularly expenses was their main obstacle • All those that borrowed Aged 30-65 also mentioning agriculture while 4/10 also • 2/10 participants have a mobile phone • 0/10 of participants declared having money did so from friends mentioned tuition. which is only used for texting lost money in a financial institution or family 2/10 participants succeed in setting aside • 10/10 participants declared • 8/10 do not have a mobile phone money: • 0/10 participants declared using Cash transfer mostly because they have no network mobile money or informal clubs to they did not apply for a • beneficiaries of where they live These participants keep this money at home save money, the 2/10 participant loan as they did not know Re-SSN and usually for paying farm expenses how to apply for a loan or • 4/10 participants listen to the radio having declared regularly saving • how loans worked. sporadically When running short of money: money said this was done at home for the sake of convenience and simplicity Topics of interest for • 0/10 participants watch TV - 10/10 participants say they run out of money and 9/10 participants mention of use training: • Financial Institutions No schooling, borrowing money from their colleagues Planning for unexpected expenses • 10/10 participants showed unbanked and - 10/10 participants do not have a - 4/10 participants currently have to repay (participants are underbanked): great interest in learning farmers financial institution close to home debts • 10/10 participants declared having to about formal savings, credit nor know what products are offered • 4/10 participants borrowed money to pay off deal with emergencies quite often and and mobile money - 0/10 participants are members of a debts because their creditors were about to always related to their family It seemed the preferred length financial institution Rural report them to the chief while 3/10 had • If an emergency were to happen, of training was around 1-2 - Reason invoked by 3/10 borrowed money and did hard labor to repay 10/10 participants have declared they hours, without specific

participants is that they don’t know their debts would borrow money from their preference for a time of how financial institutions work, 7/10 • 10/10 participants said they knew how often relatives as they are used to in their day/week participants said they didn’t have they would receive money and what they culture. 10 participants enough money to save would spend it on but only 2/10 participants 8 women • 10/10 participants pay bills in cash and said they knew how much money they claim it works fine for them currently had for day to day spending • 10/10 do not use mobile money though Only 4/10 participants mentioned they still would they would all like to hear of the service be able to borrow money in their opinion as they do not know how it works

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Group General life and access to financial Day to day money management Savings behavior / Planning for Borrowing behavior / institutions unexpected expenses Concluding questions

General characteristics: Before receiving cash transfers, money was Savings behavior: Borrowing: earned: Group 2 • 10/10 participants are heads of their • Only 3/10 declared having saved • 10/10 participants household • 10/10 own farm money in the past 12 months and declared they did not Port Loko District • 10/10 participants earn money on a regular Households spend most of their money on: said they set aside a small portion borrow money from any basis from the cash transfer program and of their income financial institution in • All participants plan their expenditures with receive their money regularly • The 7/10 participants who don’t the past 12 months food is the top expenditure and also save declared their low income was • All those that borrowed Aged 40-70 • 4/10 participants have a mobile phone mentioning agriculture and business which is only used for texting their main obstacle money did so from expenditures • 0/10 of participants declared having friends or family • 6/10 do not have a mobile phone mostly 3/10 participants succeed in setting aside lost money in a financial institution • 10/10 participants because they have no network where they money: Cash transfer live • 0/10 participants declared using declared they did not • These participants keep this money at home apply for a loan as they beneficiaries of • 3/10 participants listen to the radio mobile money or informal clubs to Re-SSN and usually for paying farm expenses did not know how to regularly as “background noise” while save money, the 3/10 participant • apply for a loan or how doing other activities When running short of money: having declared regularly saving money said this was done at home loans worked. • 0/10 participants watch TV - 10/10 participants say they run out of money and all participants mention for the sake of convenience and Topics of interest for • Low informal Financial Institutions borrowing money from their friends or simplicity of use training: schooling, - 10/10 participants do not have a family Planning for unexpected expenses • 10/10 participants unbanked and all financial institution close to home nor (participants are underbanked): farmers - 6/10 participants currently have to repay showed great interest in know what products are offered debts • learning about formal 10/10 participants declared having - 0/10 participants are members of a • 5/10 participants borrowed money to pay off to deal with emergencies quite often savings and mobile financial institution debts because their creditors were about to and always related to their family money Rural - Reason invoked by 10/10 participants report them to the village chief while 4/10 had • If an emergency were to happen, It seemed the preferred is that they don’t know how financial borrowed money and did hard labor to repay length of training was 10/10 participants have declared institutions work, and 5/10 participants their debts they would borrow money from their around 1-2 hours also said they didn’t have enough • 10/10 participants said they knew how often relatives as they are used to in their money to save 10 participants they would receive money and what they culture. • 10/10 participants pay bills in cash and would spend it on but only 3/10 participants 7 women claim it works fine for them said they knew how much money they • 10/10 do not use mobile money though currently had for day to day spending they would all like to hear of the service as Only 2/10 participants mentioned they still would they do not know how it works be able to borrow money in their opinion

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Group General life and access to financial Day to day money management Savings behavior / Planning Borrowing behavior / institutions for unexpected expenses Concluding questions

General characteristics: Before receiving cash transfers, money was earned: Savings behavior: Borrowing: Group 3 • 10/12 participants are heads of their • 12/12 own a farming business • 2/12 participants declared • 8/12 participants household saving money and declared declared they did not Bo District Households spend most of their money on: • 12/12 participants earn money on a regular saving it at home and putting borrow money from any • For 9/12 participants, food is the top expenditure basis from farming aside about 15% of their financial institution or • For 3/12 participants, school tuition was mentioned income other source in the past Aged 45-75 • 1/12 participants have a mobile phone as top expenditure • 12 months which is only used for texting 0/12 of participants declared having lost money in a financial • 4/12 borrowed money • 4/12 participants succeed in setting aside money: 11/12 do not have a mobile phone mostly institution as none have an from family or friends because they have no network where they • When it comes to planning what to do with the account • Cash transfer live money put aside: 12/12 participants beneficiaries of Planning for unexpected declared they did not • Re-SSN 4/12 participants listen to the radio - The main goal mentioned by participants for expenses: apply for a loan mainly regularly as “background noise” while setting money aside is to have a cushion in case because they did not • 12/12 participants declared doing other activities of unexpected emergencies know how to apply for a having to often deal with • 0/12 participants watch TV - The 4/12 participanst that succeed in setting loan or how loans emergencies to do with family Low informal aside money mentioned doing this at home worked. • Financial Institutions members schooling, • When running short of money: • Those that borrowed unbanked and all - 0/10 participants have a type of • If an emergency were to money declared using it farmers financial institution close to home - 4/12 participants say they borrow money from happen, 4/12 participants have friends mostly and said they currently had to for its intended purpose - 0/10 participants are members of any declared they would be able to financial institution and stated lack of repay money borrowed. They also mentioned cope and use money “set Topics of interest for funds, accessibility to financial services never borrowing money to repay other loans aside” up to the amount the training: Rural and lack of knowledge of the system to - 8/12 participants say they engaged in “hard monthly amount of revenue • 12/12 participants justify this labor” or “jagaja” to supplement their income and they receive. showed interest in - 0/10 declared knowing what the do not currently have to repay any money • The remaining 8/12 learning about credit payment process is in any financial borrowed participants mentioned turning and budgeting • 12 participants institutions, this includes mobile money 12/12 participants said they knew how often they to their friends and family It seemed the preferred transfers (Splash or other) would receive money and what they would spend it members for money 11 women length of training was • 10/12 participants received Re-SSN on, 5/12 mentioned spending money to pay for around 1/2 hours, with Most of them transfers through cash business expenditures and the rest mentioned food specific preference for the widowed and tuition • 10/12 participants prefer to pay bills in cash weekend • and don’t see the advantage of other 2/12 participants said they knew how much money means of payment they currently had for day to day spending • 0/12 are even aware of mobile money or On average, participants mentioned spending $4.25 per how to use it day

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Group General life and access to financial Day to day money management Savings behavior / Planning for Borrowing behavior / institutions unexpected expenses Concluding questions

Group 4 General characteristics: Before receiving cash transfers, money was Savings behavior: Borrowing: earned: Bo District • 10/10 participants are heads of their • 7/10 participants declared having • 2/10 participants household • 10/10 own a business saved money in the past 12 months declared they applied

• 10/10 participants earn money on a Households spend most of their money on: and said they saved money for a loan from a VSLA regular basis, 9/10 from farming, 1/10 regularly by reducing household and were approved • 8/10 participants mentioned food as being their from trading expenses. 3/10 of them declared while the rest did not main expenditure saving regularly while the remaining • • 1/10 participants have a mobile phone 4/10 borrowed money Aged 40-55 • 2/10 participants mentioned their children’s tuition 4/10 said they seldom saved. which is only used for texting in the past 12 months as being their main expenditure • Those that mentioned saving • • 9/10 do not have a mobile phone The remaining 3/10 participants succeed in setting aside money: money mentioned doing it in case of participants mentioned mostly because they have no network unexpected expenses and to avoid Cash transfer where they live • 3/10 participants keep their money at home and loans costing too much having to borrow money. They to apply for them beneficiaries of • 3/12 participants listen to the radio “at 1/10 typically try to stick to their plans but mentioned saving at home for easy Re-SSN times” unexpected problems often come up that require access to their money and to avoid Topics of interest for training: • them to spend money differently while the anyone defrauding them. 0/10 participants watch TV remaining 2/10 said to always stick to their plans • The remaining 3/10 participants • 10/10 participants • Financial Institutions • When it comes to planning what to do with the said they had an insufficient income showed great interest in Low informal - 0/10 participants have a type of money put aside: learning about saving schooling, to save. financial institution close to home and formal financial unbanked and - 10/10 participants plan about a couple weeks • 7/10 participants declared saving - 0/10 participants are members of products mostly farmers ahead what to do with their money, with 8/10 what they could without knowing a any financial institution and stated stating food as the planned expense while 2/10 It seemed the preferred specific amount lack of funds to justify this mentioned tuition length of training was • 0/10 of participants declared having - 0/10 declared knowing what the • When running short of money: around 2 hours, with payment process is in any financial lost money in a financial institution Rural - 10/10 participants say they run short of money specific preference for the institutions, this includes mobile as none deal with a financial for necessities and 7/10 participants mention weekend money transfers (Splash or other) institution preferring “hard labor” or “jagaja” as opposed Planning for unexpected expenses • 10/10 participants received Re-SSN to borrowing money, while the remaining 3/10 (participants are underbanked): 10 participants transfers through cash participants declared borrowing money • • • 10/10 participants declared having 10 women 10/10 participants prefer to pay bills in 4/10 mentioned currently having to repay money cash and don’t see the advantage of they borrowed but none said they borrowed to to deal with unexpected expenses Most of them other means of payment repay money owed often widowed • • 0/10 are even aware of mobile money • Trust was mentioned by all participants as an If an emergency were to happen, or how to use it obstacle to borrowing money (or lending to) 3/10 participants have declared they would be able to meet the expense friends: it is very difficult to get repaid. by using money saved and not have • On average, people spend $3.25 per day to borrow.