Madagascar villagers build credit through community savings
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In Andapa, Madagascar, 228 village savings and credit associations, called Voamami, bring households together around a system of collective saving and lending.
Members pool their money, contributing at least 500 ariary per week, and keep it in a shared lockbox with three keys held by different people. This system allows them to access small loans, funded by the collective savings, to start or expand income-generating activities. The largest of these community funds has reached 28.94 million ariary.
Participants use the loans to finance projects like buying goods to resell, and the Voamami encourages responsible financial habits through transparent operations and penalties for missed meetings. Beyond access to credit, the Voamami fosters trust and discipline within the community. After nine months, members share in the accumulated capital and interest based on their savings contributions, creating a small-scale local economy built on mutual support.
