Ancient Community Banking Enters Digital Age In Cameroon

Yaoundé, (APP - UrduPoint / Pakistan Point News - 12th Mar, 2024) Joseph Ngono's face lights up with a smile as he looks at his smartphone, where a payment worth $830 has just appeared in his digital wallet.

Like many Cameroonians, the computer scientist pays in each week to a shared savings fund known as a "tontine" -- an ancient system that start-ups are now bringing into the digital age.

This week it has paid out 500,000 Central African francs to Ngono, who will use it to cover the final instalment of his children's school fees.

"Without it, they wouldn't go to school," he said.

Shunned by banks, many people in Cameroon turn to their communities for help in the form of tontines, such as the one Ngono uses via the smartphone app Djangui.

In its most common form, members pay money into a common fund and take turns collecting it after an agreed period -- interest free.

Every week Ngono, along with colleagues and strangers whom they sponsor, contributes 10,000 FCFA ($16) each on Djangui.

It gives crucial access to ready cash for Ngono -- he only occasionally receives his monthly salary of 150,000 FCFA ($250) because his employer is "experiencing some cash-flow difficulties."