Rotating Savings and Credit Association

Termed tontines local savings and credit groups in the various West African countries such as Cameroon, which also have a social impact through their cooperative nature, are more like a collective savings business (see, building society, collective building society ) than the classical Tontine.

Tontines in Cameroon

In Cameroon, the so-called tontines existed for over 30 years. In particular they developed over the last 10 years in some regions to important pillars of the solidarity economy. Starting as a small, mostly family- internal savings clubs, have today formed in communities, villages and neighborhoods and businesses tontines with many different forms and in different sizes. In particular, in the region of Extrême -Nord and around the capital Maroua the Tontinenwesen is strong. As most is informal associations at tontines, no concrete information on the number of tontines, and research in this regard are still little available. Nevertheless, it is estimated that - depending on the region - up to 20 % of the population are involved in one or more tontines. The CDE SAARE is currently conducting a study on the structures solidarity economy through in northern Cameroon.

Purpose

The purpose of a tontine is to provide its participants at any given time a large amount of money available. Normally in the Tontine itself no wealth is created, because the beneficiary receives only the sum of all his personal contributions paid per cycle. Even with the complex shape of the Tontine, which works like a small bank, the wealth education takes place outside the Tontine. Nevertheless, they can be very beneficial for their members.

If a member, for example, at any given time a large amount of money needed (eg to build a house or to interpret the seed for a future harvest), the Tontine can temporarily finance a higher investment ( possibly even interest free ) functions The complex Tontine with interest arrangements for participants either as a loan or as a kind of savings account, with the advantage that the interest rates remain 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 give it the same amount of money in the Tontine, the benefits a member at the end of the meeting. There exist in this respect, two different Verteilmodi and several mixed forms:

• In its simple form, a sequence is defined at the beginning of the Tontine, after which each member gets once the coffers of the tontine. At each Tontine each member pays the same amount in the fund, and each beneficiary benefited once per cycle.
• In its complex form, the Tontine works like a small bank: In addition to the order of tontines - winner put the members of a fixed interest rate, which is based on the order. Who benefits the first of the tontine, the second tontines winner tontines The winner in the middle pays in addition to its tontines - post at the end of cycle a small percentage in the checkout, a, a slightly smaller percentage of the Tontine, etc. gets the Tontine without interest and the next gets the Tontine plus the interest on the penultimate tontines winner, etc. for the first half of the beneficiaries so does the Tontine as a loan for the other half as a savings account.

Because of the heterogeneity of forms is not possible organization of a generalization of the operation. Frequently there is only the actual tontines - Checkout still a solidarity fund, from which the members in the event of unexpected misfortunes receive a fixed support (illness, death in the family etc. ). In some structures, the members also have a fund for unexpected strokes of luck introduced (births, weddings ... ) so that the tontines have often become not only economically, but also socially an important support for the participants.

The regional context

The reasons for the strong development of the tontines in northern Cameroon are certainly diverse and are to be found in the historical, social and geographical context. The most important determinant for the functioning of tontines confidence among the members is to be mentioned, because it's mostly there are no agreements with one another. That most tontines can be found inside of families, associations, districts or companies, is no coincidence. The members know each other and are usually already in a broad network of social relationships integrated. The resulting social control or mutual dependencies ensure that not supporting the individual just after winning the Tontine from the dust.

Other important factors, the lack of public confidence in the banks and the cultural character of the region are mentioned.