If you’ve ever joined an ikimina — a community savings and loan group — you already understand one of Rwanda’s greatest financial strengths: collective saving (kwizigamira hamwe). ALSO READ: When loans make sense and when they don’t Long before formal banks and mobile money became common, Rwandans relied on trust, unity, and cooperation to help one another reach financial goals. Even today, this tradition remains a cornerstone of Rwandan financial life. According to the 2024 FinScope survey, nearly four in 10 Rwandans belong to informal savings groups. From rural farmers pooling their harvest income to city workers contributing monthly from their salaries, these groups provide both structure and solidarity. ALSO READ: Access to finance reaches 96 per cent - report Ibimina are more than just financial tools. They are safety nets built on relationships. Members contribute regularly and take turns receiving the pooled funds. In the process, they learn discipline, commitment, and mutual accountability. It’s a system that combines money management with something deeper: community care. A tale of two traditions As an American who has spent considerable time in Rwanda, I find ibimina remarkable — and something the world could learn from. In the United States, most people save and borrow individually. There are no neighborhood savings circles or rotating payout groups in mainstream culture. ALSO READ: Money moves for entrepreneurs: Building a business on a budget But among immigrant and diaspora communities — especially African and Caribbean families — similar traditions do exist. In Jamaica, Trinidad, and Haiti, they’re known as “sou-sous.” In Nigeria, people form esusu groups. In Kenya, they’re called chamas. Each one is built on the same foundation: trust and mutual uplift. These traditions aren’t merely strategic financial tactics. They are quiet acts of resistance against economic isolation. They say, “We can take care of each other.” I’ve often admired that spirit in Rwanda. During my visits, I’ve seen how people show up for one another, not only in savings groups, but also through Umuganda, the monthly community work exercise, and a national mindset that values unity. Meanwhile, in the U.S., social safety nets have been fraying. Government programmes that once provided stability are shrinking or under political debate. As I wrote this column, America was in the midst of yet another government shutdown, with public workers missing paychecks. Though the shutdown has ended, it was a reminder that in many places, community cohesion has weakened — and that sometimes, systems that appear more “advanced” have lost the heart of what truly sustains people. Why community saving works When you join an ikimina, you’re not only saving money; you’re building trust. These groups create accountability that helps members reach goals they might never achieve alone. If you know your peers are expecting your contribution every month, you’re less likely to skip saving. They also provide financial access. For people who don’t have bank accounts or formal credit histories, ibimina can be a lifeline. Instead of interest payments, members share benefits through rotating payouts or group investments. And the social side matters, too. In a culture that values connection, saving together strengthens relationships and community confidence. In good times, groups celebrate milestones. In hard times, they support each other — often stepping in when someone is sick, unemployed, or struggling. How to use savings groups wisely While ibimina have many benefits, they work best when managed carefully and transparently. Here are a few tips to make sure your group thrives: Set clear rules. Agree in advance on how much each member will contribute, how often payments are due, and what happens if someone misses a turn. Choose trustworthy members. Integrity matters more than income. A small group of reliable people is better than a large group with weak commitment. Keep written records. Even a simple notebook or WhatsApp log helps track contributions and payouts. Clarity prevents disputes later. Decide how funds will be used. Many successful groups prioritize goals like school fees, small business growth, or building materials — not short-term spending. Be transparent and fair. Rotate leadership or appoint a trusted treasurer, and review the group’s progress together. Transparency keeps trust intact. When things go wrong No system is perfect. Disagreements, missed payments, or misuse of funds can happen. The key is to handle these issues quickly and respectfully. Call a meeting, clarify the rules, and document changes. In some cases, the problem isn’t dishonesty; it’s poor planning. Maybe someone borrowed too much or faced a family emergency. Instead of expelling them immediately, some groups create a “grace period” or small penalty, allowing members to recover while maintaining accountability. These moments test the strength of a group’s trust. How conflicts are resolved can either destroy the group or deepen its unity. Bridging informal and formal finance Across Rwanda, organizations like the Association of Microfinance Institutions in Rwanda (AMIR) are helping community groups link to formal finance. Many ibimina now open collective accounts at Savings and Credit Cooperatives (SACCOs) or microfinance institutions (MFIs). This connection offers several benefits: safer storage of funds and less risk of loss, access to loans or matching grants for investment, and financial training and digital literacy to manage funds better. By blending traditional cooperation with modern tools, Rwanda is creating a financial ecosystem that respects its cultural roots while promoting national growth. From Ibimina to investment Ultimately, the value of ibimina isn’t only in helping people save money. They’re about changing mindsets. They encourage patience, planning, and purpose. The same qualities that make a savings group successful also make a business, a family, or a nation succeed. For anyone looking to grow financially, ibimina can be one good starting point. They teach the fundamentals of budgeting, discipline, and delayed gratification: skills that lead to bigger goals like homeownership, entrepreneurship, and long-term investing. In that sense, ibimina are microcosms of Rwanda’s Vision 2050: small groups of ordinary people working together toward extraordinary progress. A lesson the world can learn As someone who has lived in both the United States and traveled extensively across Africa, I see clearly that financial success isn’t just about income or interest rates. It’s about connection, trust, and shared purpose. Rwanda’s community savings groups remind us that prosperity grows stronger when it’s rooted in solidarity. In an age where individualism often dominates, ibimina show that collective care still works — and perhaps, that it always will. Lynnette Khalfani-Cox is a personal finance expert, speaker, and author of 16 books including the New York Times bestseller “Zero Debt.” She and her husband Earl Cox are expanding their financial education firm in Rwanda to support financial literacy, entrepreneurship, and economic empowerment. Money Moves is a bi-weekly column providing practical wisdom and strategies for building wealth and financial security in Rwanda’s evolving economy.
