I’d like to open a savings account, please.
Crack – crack – crack
My fingers are tingling and my thumbs are covered in small punctures. I pick up another groundnut (peanut) from my lap, crack open the shell and drop the nuts into a bucket beside me. I drop the shells on the ground, then scoop another handful of groundnuts from the huge bowl in front of me and start again. Around me, under the shade of a huge mango tree, the men and women talk and laugh while they do this work. They have been at this all day, shelling bowl after bowl of groundnuts. In fact, they have been at it all week, processing the groundnuts and selling them at the market.
But why do this work now? These groundnuts were harvested last October and stored in big sacks for the last 6 months. Why weren’t they cracked and sold after harvest, instead of waiting until now? I posed this question to Salifo, my host in the village of Zuo. He responded that he needed the money from the groundnuts to buy inputs for his farm this year, such as seeds, fertilizer and rent for a tractor to plough the land. He said that he knew if he sold them last year, he would have spent the money by this time and he wouldn’t have any money to buy those inputs. So instead, he saved the groundnuts.
This is an important form of savings for Ghanaian farmers. Since Salifo doesn’t have his own savings account at a bank – most people don’t – he has no way to protect his money when he earns some. And in Ghana, when you have any amount of cash, friends and relatives start dropping by to borrow it until, little by little, it’s all gone. Storing crops, or any other liquid asset, is a better way to save that money until you want to spend it.
The other added bonus to selling groundnuts now is the increase in price. After harvest, when the market is flooded with fresh goods, the prices are at their lowest. At that time, a bowl of groundnuts will earn you 1.5 GhC (about $1.20 CAD). But now, at the beginning of the farming season, the market has cooled down and the price has risen to 2.5 GhC ($2.00 CAD). This is another reason to store your crops and sell at a later date. But while this seems like a good strategy, often the more urgent need for cash is what will determine whether a farmer saves or sells his crops.
Of course, not everyone has the option of saving. Often families reach the end of the farming season with nothing left in their stores to eat (and sometimes they run out even earlier). The market is not flooded with crops after harvest because people are stupid and they don’t want to earn the higher price by selling later. It floods because people are desperate for money to buy food and feed their families. This is what it is like to live hand-to-mouth in a country like Ghana. Only those who start with something – a good business plan, proper farming inputs, or a bit of luck – can afford the luxury of waiting to sell their goods after harvest.
My work here is about increasing the number of people who wait to sell their groundnuts. It’s about changing the decision from one of necessity to one of strategic business planning. Overall, it’s about reducing the number of people who don’t even have a choice.