The Ontological Foundation of the Cooperative Microfinance System in African Philosophy

Abstract

The cooperative microfinance system in african philosophy is aimed at developing a savings account network involving peer groups, age-grades, peasants or farmers associations or workers unions at micro or rural settings. It is a disinterested non-profit and non-governmental organisation aimed at promoting individual economic well-being at the level of group interest mechanism. The methodology for this system is called in pigeon english ‘contribution', which, however, does not crystallise the ontological foundation, meaning and objective of the saving co-operative banking. The igbo language and cultural group in nigeria call it isusu, while the yoruba ethnic group call it osusu. These names reflect their respective cultural backgrounds and economic communitarian ontology. At the economic market level, it involves contributing to one another's economic welfare. If there are ten people in the team, a through j, they would raise, say, ngn 50,000 each to make a pool of ngn 500,000, which is disbursed to the first person a in the first month, say, january and by october, while in the tenth month, the last person j would collect his own n500, 000 and the rotation continues. However, this is not invariable, as any member of the group could from any position in the ring of money circulation indicate his or her need not to be able to wait for his designated turn and hence could take upfront his own share, while forfeiting his earlier position, so long as she/he continues her/his contribution every month. There are other equitable and just methods of sharing the contribution, osusu or isusu, which is entirely based on trust, the ontological foundation of interpersonal subjective relationship and authentic theistic humanistic communalism and Original Research Article