Thursday, January 13, 2011

Likelemba - Africa

According to Wikipedia, Likelemba is an African system of solidarity savings mechanism where several members put a certain sum of money in a "pot" and every month, the total amount contained in the pot is then donated to one of the participating members - a sort of little lottery.

Rather than being an "African" system of savings it seems this name for the system is localised to Congo and maybe some surrounding countries.


Twelve persons - mostly woman - put 100€ every month in their "likelemba pot".

* Month 1, member 1 - normally chosen by chance - gets 12 x 100€ = 1,200 €.
* Month 2, another member gets elected and rewarded with the 1,200 €, etc.


The secret of the success of Likelemba is its simpleness and formula whereby a lot of small amounts, that every member can easily spare, make one big prize. The winner has a fairly large amount with which he/she can do something extraordinary and, hopefully, break out of a financial circle of misery or life style in which he/she might be stuck.

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