A Brief History Of Susu

A Brief History Of Susu

The true origin of the Susu system is unknown.

The practice has evolved and has many variations and references in different cultures.

In Ghana it is called Susu, in Jamaica, it is called Pardner, in the Bahamas it is called Asue, in Nigeria Adashi, Esusu, or Ajo, in the Swahili-speaking areas of East Africa it is known as Chama. In South America, it is known as Pandero, in the Philippines as Paluwagan. It is called Chit in India, (a fully regulated and established financial service) The Vietnamese also call it Hui. Cambodians call it Liang Tong Tien, and the Koreans call it Kye or Gae and practice this extensively even in the United States up to this day.

The system is also sometimes referred to by academics as Rotating Savings And Credit Associations (ROSCA).

Asian and African immigrants to Western countries have used this system to ensure that despite having limited or zero access to institutional credit, every member of their communities can establish a business or a trade, get quality education or make mortgage deposits, and acquire property.

Susu is often used as a system of community-based financial support for microentrepreneurs. An important and distinguishing characteristic of Susu is that it is not in itself a source of income, and the funds being raised are not always used for lifestyle expenses.

Successful Susus will depend on whether the Members have an existing income stream that enables them to continue participating in the system by making small contributions periodically till the end of the cycle.

Man Hau Liev from the Center for Refugee Education in Auckland NZ said that the Hui, an ancient Chinese mutual finance association conceptually similar to Susu, can be traced back to the middle of the Tang dynasty (AD618-906)

In the Japanese Island of Okinawa famous for having the highest concentration of centenarians in the world, a form of Susu called Moai has been practised by the natives for centuries as a tool for financial and social stability. Each resident is said to belong to at least one Moai from their preteens and throughout their long life.