VSLAS (Village Saving & Loan Associations) - Burundi
The AVEC puts an emphasis on the organizational and democratic development of an association, which the tontine does not normally do. It is an approach that is appreciated in the country and the Government of Burundi in collaboration with CARE International has decided to make it a National approach because it is adapted to the local context and to the different projects according to the objectives of the members.
The village savings and credit system is based on a basic principle: a VSLA savings and credit group, and is formed by members who decide on their own to get together to save their money in the form of shares. . This savings is collected in a credit fund which allows them to borrow sums which they repay and to which interest is added. A AVEC group is made up of 15 to 30 members.