Group Borrowing : Microfinance-Tontine Sustainable Co-Existence. Case Of Cameroon

Akanga Reuben Johnson

doi:10.47191/jefms/v4-i11-28

Abstract

This paper uses a case study approach to examine the role of group account in Microfinance institutions on tontine's survival. The research investigates on the origin of funds deposited in group accounts, and its importance to group members. The collection of respondents’ perceptions will contribution to promote digital-group account – accessible both on apps and handset – for the group’s benefit. We interviewed ten participants coming from the critical stakeholders of rural finance in the community of Balessing in the west region of Cameroon. We performed a textual and content analysis of the qualitative data collected. The results showed that group accounts contribute to the financial, managerial and social development of tontine group – factors indispensable for strong cohesion and group survival. Moreover, group accounts also benefit microfinance institutions by contributing to their growth and development. From the results mentioned above, we made recommendations to consolidation the link between microfinance institutions and tontine groups through group accounts.

Highlights

Throughout human history, tontine or self-help group provide some moderate financial assistance to the poor bank excluded class of the population who comply with the groups’ rules (Nzémen, 1989)
We narrate the role of group accounts to tontine groups nowadays, and we showcase the opinion of participants should microfinance institutions (MFIs) reconfigure group accounts by upgrading to digital group account accessible through both an application and a simple handset
This paper uses a case study approach to examine the role of group account in Microfinance institutions on tontine's survival

Summary

Introduction

Throughout human history, tontine or self-help group provide some moderate financial assistance to the poor bank excluded class of the population who comply with the groups’ rules (Nzémen, 1989) This view of the tontine group is an overexcited description of the institution given that civil servants and first-class business people institute self-help groups with the same configuration (Tankou & Adams, 1994). In order to bring formal and informal institutions closer, more variants of MFIs gained institutional recognition, giving way for tontine to upgrade their status to any of the legally existing variant of MFI (Ayuk & Koubou, 2016; Lelart, 2006) Rural development stakeholders both from the public and private sectors with national and international recognition had to encourage local citizen to gather into groups to benefit from the funds of the rural development programs (ACEFA, 2017; ACEP, 2017).

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