Rotating savings and credit associations (ROSCA) are informal financial institutions serving the financial needs of many Africans for centuries. It has many names across African communities. AjoMoney, a startup, has built an operating system to digitize that process at micro and macro levels.
In the ROSCA system, a group of trusted individuals agree to contribute a fixed amount into a fund at regular intervals. This process continues until all members receive the sum of the money that has been deposited into the fund in turn. In Nigeria, through traditional means, rotating group savings is one of the community support mechanisms helping fragile households cope with certain crises through the network of informal and formal relationships.
AjoMoney has built technologies which push this into a new domain of aggregation, deepening trust and improving efficiency. We are happy to support Co-founders Ibrahim Adepoju and Chineye Ochem ACA, CFE, MBA on their promise to bring Ajo, Esusu, Utu, Oha, Oku (pick your name) into the new era.
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The grand vision is that people can pay school fees, buy things, etc using AjoMoney under the tenet ofBuy Now Pay Later (BNPL) which is basically the old invention in African communities with lack of credit ordinance. Of course, AjoMoney will overlay data, improving this tradition which continues to help families and communities.
In a world where young people are not open to high interest loans, AjoMoney has a promise. This is a century-old Buy Now Pay Later version since when all the fund contributions have rotated, no one actually pays any interest even though each gets the funds to execute a project.
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