INTRODUCING SUSU

The Susu System

Susu is a traditional form of crowdfunding that long predates the Internet. This centuries-old financial system is recognized across various cultures worldwide, from Asia to Africa and the Americas, and is commonly referred to in West Africa as 'Susu'.

It is a type of cooperative finance or a mutual-aid social funding system.

The essence of Susu lies in its group-based approach. Individuals come together to form a group with the specific aim of pooling funds. This collective effort is designed to address the economic needs of each group member.

The process is simple yet effective: each participant agrees to contribute a predetermined amount of money regularly over a set period. For example, 20 members might commit to contributing $20 weekly for 20 weeks. During each weekly cycle, each group member qualifies to receive a lump sum of $400, minus any administration fees. This bulk amount can then be used for substantial investments or payments that the individual’s regular income wouldn’t have been able to cover.

In many countries around the world, when formal sector credit is out of reach due to high interest rates and stringent eligibility criteria, workers and small-scale entrepreneurs rely on the Susu system to provide an alternative finance solution.

Susu:

The word 'Susu' itself is from the Akan language in Ghana meaning “small-small”, it can refer to the building up of small amounts of money from numerous sources to get a lump sum.

This practice paved the way for the creation of modern Micro Finance Institutions.

In essence, Susu is a form of reciprocal crowdfunding. It exemplifies the concept of 'Crowdfunding the Person’ demonstrating how collective support within a community can effectively meet individual financial needs.