Published on 17/06/2013 | Author: Bambi KEBE
It is the famous monthly, quarterly or annual appointment of mothers. Tontines are present practically in all Africa and in France thanks to immigration and they represent a large independent financial organization.
A tontine is a group of made up of friends, family, neighbors, who are from the same village or country, where each individual finances a same amount at constant term. This money helps them make loans each at their turn or to save money. This very old system is fabulous for three reasons; loans at zero rate, confidence system and creation of strong social links.
Having the experience of being in a tontine, I highly recommend this system. Actually, we were 13 women, each month each of us had to give the same amount of money. These installments lasted 13 months since we were 13 women and the total monthly subscription was donated to one of us. The order of transfer is done mainly on the order of voluntary. For the first to take the monthly total contribution, the tontine is considered to be a loan which they will refund the following months. Whereas for the last; the tontine is a system of saving.
These tontines make it possible to realize projects whose only obstacle was its financement. By using this system, one refunds his loan all the remaining month until the end of the tontine. This refund concerns only the capital lent deprived from the interest.
Moreover, the tontine system makes it possible to save money, for those who have difficulties in saving. Mainly women’s business, the group members know each other. The tontines are never done between people unknown to each other. Each new member knows at least one member. Moreover, they mutually believe in each other since they seek for the same goals. There is no contract signed between the members but it there the word which places confidence. Indeed, in Africa the word is very important; it is worth more than one signature on a paper.
Beyond the financial function, the tontines reinforce the social link between the friends and the family. Indeed, each month, when the time comes to contribute, a meeting is done at one of the members’ home who prepares a special meal for her guests. The more the meetings we made the more we got closer and became good friends.
It is true that to save and borrow, there are the banks but they do not offer loans without condition. For the savings, they offer a way to put aside money with interest rates but do not offer the social factor that is: to forge social links. I have a bank account but I continue to take part in tontines.
I highly recommend you the principle of tontine; it is a means of money making and to reinforce social links.