The tontine, a bank of trust

A tontine is a rotating savings circle. A small group of people who know each other contribute the same amount on a fixed date, and each member in turn receives the whole pot. No interest, no contract: only one's word and one's reputation in the community.

Radio-Canada, with CBC Calgary, told the story of women from Somalia, Sudan and Ethiopia who keep such a circle going in Alberta. One of these groups has existed since 1998: at first, newly arrived refugees saved together to send help to their home countries, then at war. Later, the money went to buy a car, furniture, to help the children repay their student loans, or even to put a down payment on a house. Another woman, who had to pay $2,000 in fines, invited six friends to contribute $500 a month: she received the first payout, $3,000.

In South Africa, these circles are called stokvels. According to the National Stokvel Association of South Africa (NASASA), more than 11 million South Africans belong to one; its founder observes that many have found the traditional banking system did not benefit them. Another Radio-Canada report, in Toronto, described the tontine as founded on mutual trust, mutual aid and solidarity. Everywhere, the principle is the same, and it is Ubuntu in its purest form: my financial security runs through yours.