The role of informal microfinance institutions in saving

Since they have appeared on the scene recently, SACCOs are still newcomers in the African
landscape of financial systems offering savings and credit services. They still only occupy a
small share of the market in comparison with the other two. They are sometimes midway
between both extremes.
In fact, the emergence and development of centralized financial systems (DFS) has resulted in
part from the failures and limitations of the other two systems.
1.1.11: EXPERIENCES OF FINANCIAL SYSTEMS IN AFRICA
The Tontine: - The tontine meets the needs of domestic economy where income is weak and
irregular. The system depends on extending contributions over time and on the following
principle: the group pays dues and the sums thus collected are paid out in turn to one of the
dues-payers. The dues are collected, as many times as there are dues-payers, so that each one
receives the same capital.
The tontine in no case is a means for accumulating capital for an economically profitable
investment. It makes it possible to meet primary and family needs and operates because each
of the dues-payers. Practically at the same time, wants to provide a definite response through
a short-term savings effort. The success of the tontine, therefore, relies on the principle of strict
equality, trust and non-hierarchical control.
Door-to- Door Bankers
Is what a person go every day to their clients to receive a preset sum of money on the agreed-
upon due date (at the end of 31 or 62 days), the door-to- door banker returns the amounts
collected with the exception of one payment out of 31, which represents the interest or the
price of safety service provided to each saver.
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