Rawpixel.com<\/a><\/em><\/figcaption><\/figure>\n\n\n\nTake the example of a group of 10 friends who have formed a social group and njangi with a monthly meeting. Every month they each decide to bring in $500. Members could increase their stakes. Two members decide to bring in $1000 each instead of $500. That means there are 12 'hands' of $500 each. The group, therefore, has $6000 at each sitting. In some groups, members may cast ballots to decide the order in which they take home the funds.<\/p>\n\n\n\n
In other cultures, the hosting member takes home the funds and hosting rotates to a different member\u2019s home each month. On the day of the meeting, everyone brings in their contributions and the first member takes home a cash packet of $6000. This process will rotate each month for a year to consume the 12 'hands' of the Njangi. Each time a member takes home money, the member is said to have 'chopped the njangi'. The two members whose contributions are doubled will have two opportunities to take home money. They could negotiate with other members on the collection times. In some larger groups members \u201cchop\u201d or borrow funds on a bi-weekly or even a weekly basis. The Njangi term is consummated when all hands have been chopped and the group can start over.<\/p>\n\n\n\n
How it is used<\/h2>\n\n\n\n
Some groups use Njangis<\/em> as a support system or investment club. They require members to leave behind a token whenever they collect funds. For instance, instead of taking home $6000 as in our example, each member leaves behind $50 which will be saved in a group account and could be used to invest in a mutual fund, visit a sick or bereaved member or some other purpose.<\/p>\n\n\n\nIn some variations of this process, all funds pooled together can be borrowed. Some situations warrant the borrower to present some form of collateral such as a car or a house especially when the stakes are higher. In other cases, one or two members will have to surety a potential borrower. Trust is the dominant factor in groups practicing the Njangi.<\/p>\n\n\n\n
Njangi funds have helped Africans achieve the dream of owning a home. They have also been used to pay tuition bills, buy a car or relief an immediate financial crisis. It has helped many Africans save as it creates a level of discipline since the funds are actually a loan and must be repaid.<\/p>\n\n\n\n
Some Njangi groups are actually set up for investment purposes. Every time the group meets, they put money down and when a project comes up, they all go into the project as a group. Njangis <\/em>have helped some African Entrepreneurs thrive and has been the stepping stone to low or no interest borrowing that has propelled many African businessmen and women into much higher gains.<\/p>\n\n\n\nNjangis <\/em>could be compared to a secure line of credit. It could also be likened to an investment club. There are many Africans in the Diaspora who will laud this process for their financial success today. Njangis <\/em>have the added benefit of developing deep and lasting relationships while achieving financial growth and independence.<\/p>\n","post_title":"The Njangi: An African Financial Support System","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"the-njangi-an-african-financial-support-system","to_ping":"","pinged":"","post_modified":"2024-10-17 00:17:53","post_modified_gmt":"2024-10-17 00:17:53","post_content_filtered":"","post_parent":0,"guid":"https:\/\/africanvibes.wpengine.com\/?p=4178","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"4","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_3"};