One of the qualities I admire the most in humans is the ability to adapt. Fortunately we were all gifted with this ability regardless of our social status, race, age or religion.
But what does that have to do with Kixiquila?
In 1864, Friedrich Raiffeisen created the Heddesdorf’s Credit Association, his homeland. Due to a shortage of financial institutions at the time, Friedrich Raiffeisen saw himself forced to create a social fund in cooperatives to assist the needy farmers.
His method became known as the Rotating Savings and Credit Association, which in our country is better known as Kixiquila, acquiring different denominations around the continent as well. Eg: Xitique in Mozambique, Abota in Guinea-Bissau.
Kixiquila is a method of informal microcredit, where a group of people contribute periodically with an amount, so that each member rotationally takes part of the saved amount.
To illustrate better this activity, just imagine a group of 5 people, where everybody is required to contribute a specific amount monthly. Among these same people, each one of them has a month where he receives the contribution of all others.
This model has helped many people – especially the low-income workers who are often part of the informal market, to form their children, keep their families, build their own houses, and to make most of their dreams come true.
Source: Economia & Mercado