ROSCAs: Tech Can Amplify Culture

For many centuries, rural economies have used trust-based cooperative methods to generate resources for agriculture and trade.



A rotating savings and credit association is a framework that circumvents problems of access to finance, especially transaction costs. Today, the principle behind ROSCAs thrive in modern society and urban economies.


Rotating savings and credit associations (ROSCAs) ride on the social capital theory to deliver value to members.


Such informally organised trust-based groups facilitate financial inclusion and convenient access to interest-free credit facilities.


Across indigenous African societies, different variants of ROSCAs exist, from Èsúsú among the Nigerian Yoruba to the Stokvels of South Africa.


Modern technology can amplify indigenous culture, and fintechs demonstrate this. 


#Culture #Esusu #Stokvels #Financialinclusion #Cities #Informaleconomy #Tech #Principle #Cooperatives #Ajomoney

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