Rotating Savings and Credit Associations (ROSCA)

• Description: In ROSCAs, a group of individuals contributes a fixed amount of money at regular intervals, and the total sum is given to one member at each interval on a rotating basis. The cycle continues until every member has received the lump sum.
• Success Story: ROSCAs are prevalent in West Africa (known as “tontines”) and parts of Latin America. They provide a flexible and informal method for people to save and access lump sums of money for larger investments.
• Key Features:
• Rotational lending with no interest
• Strong reliance on trust among group members
• Suitable for short-term financial needs
• No external financial institutions involved