Rotating Credit and Savings Association is an informal financial institution consisting of individuals who make set contributions and withdrawals to and from a common fund. They are found in developing countries and practiced mostly by women, men, or a mixture of both.

In Ghana, ROSCAs are known as Susu, in Somalia, as Hagbad or Ayuuto, in the Democratic Republic of Congo, as Restourne; in Cameroon, as Jangui; in Nigeria, as Esusu or Ajo, and in francophone West Africa (such as Benin, Senegal, and Togo), they are known as Tontines.

Being part of a ROSCA brings a couple of benefits such as:

  1. Personal savings of a minimal amount that could not be accepted in a bank
  2. Easy way to have access to funds for sustenance or investment
  3. Social benefit: Beyond money being the reason for their meeting, we usually see ROSCA provide opportunities for eating, drinking, and networking.

ROSCA has some disadvantages, which are seen below;

  1. ROSCA pays no interest or profit on money collected
  2. Money is insured only by the trust members have for each other
  3. Frequent cases of fraud and theft

Transitioning from a ROSCA to a credit union can offer several advantages.

Here are 7 reasons why individuals might choose to make this transition:

  1. Ownership: When you join a credit union, you become a member and owner of the credit union. Unlike dealing with a ROSCA where you are just a member of a group, being a member of a credit union gives you a say in the credit union’s decisions and operations.
  2. Member-oriented approach: Credit unions are not-for-profit financial institutions that prioritize serving their members’ best interests. This often translates into offering better interest rates, lower fees, and more personalized customer service than traditional banks.
  3. Sense of community: Credit unions are often deeply rooted in the communities they serve. Members of credit unions can benefit from the sense of community involvement and the opportunity to support local initiatives and charities.
  4. Competitive products and services: Despite their not-for-profit status, credit unions offer a wide range of financial products and services similar to those offered by banks, including savings accounts, loans, credit cards, and more. Credit unions often provide competitive rates and terms for these products and services.
  5. Your money is saved: As your money is saved in the credit union’s coffer, you can rest assured that is safe and sound. The credit union has more experience in managing funds than ROSCA. Also, your fund is insured by a local insurance company.
  6. Ease to suit fraudster: It’s easier for the credit union to suit a fraudster because it has a legal personality compared to a ROSCA which is more of an informal association.
  7. Raise funds from local or international organizations: Any organization needs more money to finance its operations and development. A credit union can apply for funding and be granted because it is a company, has collateral, and keeps financial statements something which is rare with a ROSCA.

It is important to research and compare the offerings and services of different credit unions before deciding to transition from a rotatory credit and savings association to a credit union.

If you wish to open an account with a credit union, visit

However if you wish to create a credit union or a microfinance institution, do well to contact us