The Institut Africain pour le Développement Economique et Social (INADES) was founded in 1962 in Abidjan by a team of French Jesuit priests at the request of West African bishops. INADES Formation Congo offers various services, including the structuring and accompaniment of microfinance institutions. One of its initiatives is Fonsdev, a solidarity fund for development born out of self-promotion. Fonsdev aims to provide financial services to rural communities.
Fonsdev was created to address the financial needs of farmers who did not know how to manage their money after harvesting and selling their produce. The fund provides a proximity banking service, allowing farmers to save and access credit. One of the strategies used to collect funds is the "tontine" savings program. This program is a form of savings collection and small credit distribution targeting informal sector actors, such as street vendors, artisans, and small traders.
The tontine savings program has two components: savings and credit. Clients can subscribe voluntarily, with contributions ranging from 100 to 10,000 Congolese francs. The program is managed by promoters or collectors who are remunerated based on the monthly collections. The first deposit is used for Fonsdev's operational costs. The program offers several benefits, including the growth of Fonsdev's membership, mobilization of small savings, and creation of employment opportunities for promoters.
The tontine program also provides benefits to its clients, including progressive and easy savings, access to credit, and easy repayment terms. However, the program faces challenges, such as operating outside of Fonsdev's offices, competition from other financial institutions, and the risk of counterfeit banknotes. Effective management of subscribers without accounts is also a concern.
Despite these challenges, the tontine program has the potential to promote financial inclusion in the Democratic Republic of Congo. The program's success will depend on its ability to respond to the needs of farmers and rural communities. According to Sylvie Kalanga, the program's future depends on its capacity to address these needs over the next 20 years.
The tontine program is an innovative approach to financial inclusion, providing an alternative to traditional banking services. By leveraging the power of community-based savings, Fonsdev aims to promote economic development in rural areas. The program's impact will be closely monitored, and its success could serve as a model for other financial institutions.
INADES Formation Congo's tontine program is a significant initiative aimed at promoting financial inclusion and economic development in the Democratic Republic of Congo. With its focus on community-based savings and credit, the program has the potential to make a positive impact on the lives of rural communities.
Key points
- INADES launches tontine savings program to promote financial inclusion in Democratic Republic of Congo
- Program provides savings and credit services to informal sector actors
- Tontine program faces challenges, including competition and counterfeit banknotes
