Marie Michael Library

Group based insurance and financial intermediation: evidence from the peri-urban Gambia

Nagarajan, Geetha; Meyer, Richard L.; Graham, Douglas H.

This paper describes the operational mechanism used by informal groups in the Gambia called kafos. The evolution of kafos and the functions performed by indigenous and NGO kafos in peri-urban areas are described. The quality of services provided by indigenous and NGO kafos is discussed to derive implications for NGO involvement in kafos. The paper concludes that NGOs should be cautious when they offer financial services through the kafos by not underpricing their loans to the detriment of indigenous kafos.