What Is a Tontine?
The tontine, also known by other names depending on the African country (e.g., rotating savings fund, collective contributions, ROSCA – Rotating Savings and Credit Association), is an informal savings and credit system that is very widespread in Sub-Saharan Africa.
Origins of the Word
The term dates back to Lorenzo Tonti, a 17th-century Neapolitan banker who proposed a tontine loan system in France as a way of financing the state.
How does a tontine work?
1. Rotating Tontine (Savings–Credit)
Each member contributes a fixed amount at regular intervals (daily, weekly, monthly). In each round, one beneficiary receives the entire pooled amount either by random draw or bidding. The cycle ends when everyone has received their share.
2. Accumulation Tontine
The contributions accumulate in a mutual fund. This capital is sometimes loaned to members as credit, with interest, and redistributed at the end of the cycle based on contributions. This model combines savings, credit, and sometimes mutual insurance services (health, death, emergencies).
In Cameroon, both methods (rotating + accumulation) are often used together for more flexibility.
Socio-Economic Role in Africa
- Access to credit: In many African countries, formal banks are difficult to access. The tontine fills this gap by offering credit based on trust and solidarity.
- Forced and collective saving: It encourages saving discipline and helps build capital, even with modest income.
- Social cohesion: It strengthens ties within communities (family, neighborhood, workplace), and promotes mutual support in case of illness, death, or group projects.
- Local economic dynamism: Tontine funds often finance business, agriculture, or local construction projects.
Key Figures and Outlook
- In Cameroon, up to 20% of the population is estimated to participate in at least one tontine, according to some regional estimates — although data remains fragmented.
- Tontines play a major role in the informal sector, and there's a recent shift toward innovative models, including social insurance products such as the TontineRe project in Cameroon (2023).
Why Paykko is Revolutionizing the Online Tontine
Paykko digitizes the tontine to offer a modern, reliable, and secure experience:
- Transparent tracking of contributions and cycles via a mobile interface.
- Automatic notifications for dues and draws.
- Security: clear history, privacy, and adherence to group rules.
- Accessibility: anyone can create or join a group, even without a bank account.
Download Paykko
- On Android: Available on Google Play.
- On iOS: Available on the App Store.
In Summary
The tontine is a central pillar of Africa’s social economy: a collective savings and credit solution based on trust.Today, with Paykko, this traditional system becomes accessible via mobile — combining simplicity, security, and transparency.
Feel free to ask if you'd like a short version, a storytelling format, or a user-friendly tutorial version.
