Strengthening Local Savings and Credit Models to Promote Economic Recovery in Post-Conflict Central African Republic: A Feasibility Study

The Central African Republic (CAR) is emerging from a decade of intense socio‐political turmoil, fueled largely by internal power struggles and further aggravated by persisting regional insecurities along its borders. These sustained conflicts have devastated civilian livelihoods and caused a massive deterioration in the socio‐economic conditions in what was already one of the least developed countries in the world. Despite poor infrastructure, disconnected markets, and an underdeveloped financial sector, some level of economic activity persists in early recovery areas, driven largely by individual entrepreneurial spirit as well as the utilization of traditional savings and credit strategies. These strategies take the form of tontines, groups in which individuals pool savings to acquire the lump sums that they need for both consumption and investment.  These structures are pervasive throughout the CAR, even in post‐conflict areas. The purpose of this workshop was to conduct a feasibility study to explore potential opportunities to support tontines. The study documents the existing format, scale, pervasiveness, strengths and weaknesses of tontines in five target cities, leading to the design of a pilot project. The goal of this pilot project is to contribute to the restoration of economic safety nets and income generating activities in post‐conflict areas of the CAR.