Tontine (Africa)

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Tontines denote local savings and credit groups in the various countries in West Africa , such as in Cameroon . Due to their cooperative character, they also have a social meaning and thus correspond more to a collective savings business (cf. Bausparkasse , Kollektives Bausparen ) than the classic tontine , an early form of pension insurance. They represent a form of private savings group ( ROSCA ).

Tontines in Cameroon

So-called tontines have existed in Cameroon for over 30 years. In the last 10 years in particular, they have become important pillars of the solidarity economy in some regions . Starting out as small, mostly family-internal savings clubs, today tontines of various shapes and sizes have formed in communities, villages and city districts and companies. The tontine system is particularly pronounced in the Extreme-North region and around its capital Maroua . Since tontins are mostly informal associations, no specific information is available on the number of tontins and little research is available on this. Nevertheless, it is estimated that - depending on the region - up to 20% of the population are involved in one or more tontins. The CDE-SAARE is currently conducting an investigation into the structures of the solidarity economy in North Cameroon.

purpose

The purpose of a tontine is to provide a large amount of money to its participants at any given time. Normally, no wealth is created in the tontine itself, as the beneficiary only receives the sum of all of his personal payments per cycle. Even with the complex form of the tontine, which functions like a small bank, the accumulation of wealth takes place outside the tontine. Still, it can be very beneficial to its members.

For example, if a member needs a large amount of money at some point, e.g. B. to build a house or to buy the seeds for a future harvest, the tontine can finance this larger investment in the short term, possibly even interest-free. The more complex tontine with interest rate regulation acts for the participants either as a loan or as a kind of savings book , with the advantage that the interest remains within the group.

organization

Tontines are small groups of usually 10 to 50 people who meet regularly to exchange a predetermined amount of money . All members put the same amount of money into the tontine, which will benefit one member at the end of the meeting. There are two different distribution modes and a number of mixed forms in this regard:

  • In its simple form, a sequence is set at the beginning of the tontine, according to which each member receives the tontine cash register once. With each tontine, each member pays the same amount into the fund, and each beneficiary benefits once per cycle.
  • In its complex form, the tontine works like a small bank: In addition to the order of the tontine winners , the members set an interest rate that is based on the order. Whoever is the first to benefit from the tontine pays a small percentage in addition to his tontine contribution at the end of the cycle, the second tontine winner a slightly smaller percentage of the tontine, etc. The tontine winner in the middle receives the tontine without interest and the next person receives the tontine plus the interest of the penultimate tontine winner, etc. For the first half of the beneficiaries, the tontine works like a loan, for the other half like a savings account.

Due to the heterogeneity of the organizational forms, it is not possible to generalize how they work. In addition to the actual tontine fund, there is often a solidarity fund from which members receive fixed support in the event of unexpected accidents (illness, death in the family, etc.). In some structures, the members have also introduced a fund for unexpected fortunes (births, weddings ...), so that the tontines have often become an important support for the participants not only economically but also socially.

Regional context

The reasons for the strong development of the tontines in North Cameroon are certainly diverse and can be found in historical, social and geographical contexts.

The most important determinant for the functioning of tontines is the trust among the members, because there are usually no contracts with one another.

It is no coincidence that most tontines can be found inside families, associations, districts or companies. The members mostly know each other beforehand and are integrated into a tight network of social relationships. The resulting social control or mutual dependencies ensure that the individual does not simply run away after winning the tontine.

Other important factors to be mentioned are the people's lack of trust in the banks and the cultural character of the region.

See also

literature

Individual evidence

  1. ↑ CDE-SAARE