VSLAS (Village Saving & Loan Associations) - Madagascar

Village Savings and Credit Associations

The Village Savings and Credit Associations (AVEC) are based on existing tontine models. The tontine does not have a unique shape: its profile differs from one continent, one country or even one region to another.

The tontinières can be small merchants who entrust their membership fees to the president of the association each week. The latter redistributes the total to the members in turn. The WITH does not have a rotary operation. According to the form advocated by SI in the context of this project, the AVEC is governed by rules of procedure drawn up by its members and takes place over a cycle of 9 to 12 months.

At each weekly meeting, members pay their contribution to the solidarity fund and buy shares (savings). From the 3rd or 4th month, the AVEC allows members who request it to take out a loan with interest (between 5% and 10% per month over 3 to 4 months) of a maximum amount three times greater than the debtor's total savings. At the end of each cycle, all credits are repaid, and all savings and profits are distributed to members in proportion to the number of shares held.

In Madagascar, tontines are not really practiced and information concerning VSLAs, if there are any, is not accessible.