Alliance in Motion; an investment opportunity or a pyramid scheme?

The firm deals in dietary supplements recommended by nutritionist. Courtesy photos.

Alliance in Motion Global Rwanda is a subsidiary of Alliance in Motion Global, a company that claims to deal in food supplements with its headquarters in the Philippines.

 Though dietary supplements are recommended by nutritionists, the company’s business model raises eyebrows leaving most wondering whether it is an investment opportunity for the general public or a pyramid scheme.

Joining the group currently costs a new member Rwf198,000. On being signed up, one is handed what the company calls ‘global package’ which among other things is meant to give one access to the company system through an access code. For those who do not have a bank account, an account is opened for them.

Alliance in Motion Global Rwanda is a subsidiary of Alliance in Motion Global, a company that claims to deal in food supplements with headquarters in Philippines. 

The account is connected to your username and code as earnings are meant to be channeled to their bank account.

The company doesn’t allow new entrants to independently register themselves rather require long serving members to recruit them and hold ‘their hand in the processes.

The new entrant doesn’t earn anything but instead the recruiter is paid Rwf 12,000 and extra Rwf 36,000 if they recruit the second new member.

With such benefits, the public has been driven with promises of great riches if they recruit new members.

 Attending the company’s training, one notices that there is little, if any, focus on the health benefits of the supplements with most of the focus being on how much one can make from the initiative.

Further, the company is less focused on sales but rather recruitment frequency as its growth strategy.

The coordination seems to work on a model whereby entry fees of new members are used as commissions to old members and the company survival lies in the hands of the number of entrants.

According to those with experience with the group, the top and junior managers seem to flaunt their ‘prosperity’ probably in an attempt to encourage new members to keep recruiting new members to get to their level.

In just two years the company has been able to establish several training centres in Kigali and there are ongoing plans to open more opened across the country, a trusted source told Business Times.

Business Timeswas only able to establish three main training centres, one located at Kimironko and two other in the city centre, all attracting large crowds.

But the bigger question is how fast the company has been able to recruit thousands across the country to invest and be as distributors despite having pricey products.

Aline (not her real name) a Rwamagana resident who joined the company after buying products worth Rwf 220,000 with a promise that if she could manage to get someone to buy the products of the company, she was to earn Rwf 12,000 each time. But this did not come to pass.

“What I think, the company have been able to succeed because of its business model that promises people goodies which cannot materialise”, she said.

The company influence is fast growing among a section of the population with the promise of amassing wealth and riches.

Regulation in Rwanda.

According to officials from the Central Bank, there is no regulation in regard to businesses which seem to practice such models in Rwanda.

“Currently, we have no clear policy that regulates such businesses but we have had collective initiatives from all government regulatory authorities intervening if such businesses are found to be causing harm,” an official said.

Also, officials added that the National Bank of Rwanda only intervenes if the actions of the company pose a risk to the financial sector.

Without such a clear regulation, different people across the country have been victims of this seemingly fraudulent food supplement company.

Dominico Nsabimana, a small holder farmer from Huye in Southern Province, is one of the many distributors of the firm still hoping to amass wealth.

Nsabimana said that, the company was introduced to him by a colleague, who gave him part of the products claiming, they cure back pain which turned out  not to be the case.

Business Timesendeavored to get a comment from the company but it was unable to as the firm maintained that all information sought would be available in the daily training they offer.

editor@newtimesrwanda.com

 

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