Towards development of tontines in Cameroon?
Learn how tontine tend to grow and reduce poverty in the country.
During the month of August, Cameroon has experienced a resurgence of repayments school savings made by members of tontines.
A tontines is a group of people who decided to create a common jarr where everyone pay the same amount of money regularly. At each meeting, one person gets the entire tontine and so on, until all members have "benefited from the tontine."
These tontines represent about 190 billion CFA francs according to the microfinance strategy document in Cameroon conducted by the Ministry of Finance in April 2013.
This document indicates that 58% of Cameroonians prefer tontine because investments are more profitable than for a conventional loan. Indeed, in a survey conducted by the Daily Economy in August 28, 2013, we learn for example that a saving of 84,000 CFA francs permits to a member of a tontine to get an envelope of 125,000 CFA francs a year later. It represents 67% of their savings because of loans made by other members of the same tontine at rates from 5% to 10% per month.
This dynamic allows the tontine to be one of the most important sources of financing in Cameroon, in favor of members who are recovering from significant benefits.
Tags : tontines, Cameroon, MicroWorld, microfinance, microcredit
Source : Agence Ecofin