THE DJANGGI, A TRADITIONAL FORM OF SAVING and CREDIT IN WEST CAMEROON

Abstract

Summary The study of indigenous rotating credit associations in the Third World has recently received fresh attention because of their potential role in rural development. Research however has barely focussed on the more technical details of the issuing and recovery of credit. This article tries to fill part of the gap by a description of the Djanggi in West Cameroon. Selection and credit rating of membership, problems of security, overhead costs, fraud and social control are dealt with. The analysis shows also that the Djanggi is more than simply an institution for saving and borrowing. It combines elements of education, sociability, tradition and recreation. Its flexibility and adaptive potential have enabled villagers to cope with the increasing demands of a changing society. In the final analysis this institution seems ideally suited to carry a community through the initial stages of socio‐economic transition. It thus offers a sound alternative to modern cooperatives and credit unions, struggling with complexity and formality of organisation and procedures. Résumé L'étude des associations indigoènes de crédit rotatif a reçu récemment une attention renouvellée en raison de leur role potentiel pour le développement agricole. Cependant, la recherche ne s'est guère intéressée aux détails plus techniques de ľ;ouverture et du recouvrement des crédits. Cet article essaie de combler en partie cette lacune àľaide ?une description du Djanggi dans ľOuest du Cameroun. La sélection des membres et laG répartition des crédits, les probleGmes des garanties, les frais généraux, les fraudes et le contrôle social sont examinés. L'étude montre aussi que le Djanggi est plus qu'une simple organisation ?épargne et de crédit. II combine des elements éducatifs, sociaux, traditionels et récréatifs. Sa flexibilityé et son potentiel ?adaptation ont permis aux villageois de tenir tête aux demandes croissantes ?une société en changement. En analyse finale, cette institution semble convenir de façon idéale pour faire traverser à une communauté les premiers stages de transition socio‐économique. II offre ainsi une alternative de valeur aux coopératives et unions de crédit modernes, lesquelles sont aux prises avec la complexité et les formalités de ľorganisation et des procédures. Zusammenfassung Die Untersuchung einheimischer Genossenschaften für rotierenden Kredit in der Dritten Welt wurde in letzter Zeit wegen deren potentiellea Rolle in der ländlichen Entwicklung aufs Neue aktuell. Die Forschung hat sich bisher jedoch kaum auf die technischen Details der Kreditvergabe und Kreditrückzahlung konzentriert. In diesem Artikel wird versucht, einen Teil der bestehenden Forschungslücken durch eine Beschreibung der „Djanggi” in West‐Kamerun zu schließen. Auswahl und Bemessung von Krediten, Probleme der Sicherheit, Gemeinkosten, Betrug und die soziale Kontrolle sind die Themen dieser Arbeit. Die Analyse zeigt, daß die Djanggis mehr als nur eine Institution für Sparen und Geldausleihen sind. In ihr sind Erziehungs‐, Gesell‐schafts‐, Traditions‐ und...

Scripting development through formalization: accounting for the diffusion of village savings and loans associations in Tanzania

“…CARE's innovation in disseminating this form of ASCA has been to standardize the instruments through which groups are able to manage themselves and distribute this through a package of scripted procedures and artefacts as a toolkit for group functioning. These include regular meetings, a separate ‘trouble’ fund for those unable to meet their contributions, designated office holding, and organizational routines, in addition to rules for managing saving and lending through the public recording of group transactions (Ardener : 210; Bouman ; ; ; Bouman & Harteveld : 108; Geertz : 258). Initial mobilization occurs through field agents.…”

“…From this perspective, the difference between debtor or creditor status is essentially a matter of timing (James : 1064; Maurer ; Peebles : 236). Consequently, non‐repayment of a loan may be justified by some members as an advance reclamation of their own savings (Bouman & Harteveld : 103). This behaviour, where it occurs, allows the defaulter to take back what they have put in, but undermines the principles through which these groups have been introduced to promote, namely saving conceptualized in terms of increasing the value of monies invested, rather than safekeeping.…”

“…Accounts of self‐organized savings associations consistently remark on the ceremonial and ritual aspects of their practice (e.g. Bouman & Harteveld : 108; James : 26; : 1046; Rodima‐Taylor : 570).…”

Household Economic Well‐being: Response to Micro‐Credit Access in Cameroon

“…The practice of microfinance is culturally rooted and dates back many centuries in African countries and is not just a new Western concept in the African continent. Indeed, as noted in Bouman and Harteveld (), an indigenous system of savings and credit occurs in the Highlands of Cameroon — spanning the West, Northwest and Littoral regions, and its existence is independent from European influence. Indeed, before the introduction of Western currency, these indigenous systems of savings and credit operated on brass bracelets, food items, cowries and livestock.…”

Credit Unions as Conduits for Microfinance Delivery in Cameroon

“…One area which has received little attention in the academic literature on financial institutions in Cameroon has been a focus on the role of credit unions in promoting financial inclusion. The leading writers on Cameroonian financial institutions (such as Bouman , Münkner , Schrieder and Cuevas , Baland et al , Ardener ) have not focused on this area. Here lies the purpose of this paper.…”