Lízingbe

Lízingbe is a term originating from the West African nation of Benin. It refers to a traditional practice of collective saving and borrowing, often within communities or social groups. The core principle of lízingbe involves members contributing a predetermined sum of money at regular intervals, such as weekly or monthly.

From this accumulated fund, one member receives the entire amount collected during that period. This cycle continues until all members have had their turn receiving the lump sum. The process ensures that individuals have access to larger sums of money that they might not be able to save on their own, facilitating larger purchases or investments.

Lízingbe serves multiple purposes. Beyond financial provision, it strengthens social bonds and fosters mutual support within the community. It operates on trust and a shared understanding of the repayment and collection schedule. While often informal, lízingbe can be a vital economic tool, especially in areas where access to formal banking services is limited. The practice is adaptable and can be tailored to the specific needs and capacities of the participating group.