Introduction

In Cameroon, over 60% of the population is made up of young people (only 3.6% are aged 65 and above), while economic and employment conditions remain difficult. Many young people are unemployed and pushed into the informal sector. Moreover, access to bank credit remains limited for them. Entrepreneurial tontines (ETs) therefore represent an alternative means of financing economic projects, as they are specifically designed for this purpose. In this sense, they play a key role in young people’s economic take-off. But how do they promote financial autonomy? What are their advantages and limitations?

Entrepreneurial Tontines: A System of Savings and Solidarity for Youth

Also known as Rotating Savings and Credit Associations (ROSCAs), ETs are a popular and fast means of financing projects in an environment marked by restricted access to investment credit. When a group of young people decides to contribute periodically or daily to a common fund, these tontines become a source of wealth creation, improved savings returns, and protection against unforeseen events. They therefore represent networks that are both social and financial, with significant impact. In their traditional form, tontines were based on solidarity: farmers pooled their labour to increase production. Today, this solidarity has taken on an entrepreneurial dimension. Based on trust and mutual support, ETs enable young people without access to credit to finance their projects, obtain capital without high interest rates, and develop a culture of saving and investment. Entrepreneurial tontines thus represent a modern expression of Africa’s legendary solidarity.

Tontines and Youth Entrepreneurship in Cameroon

ETs provide young people with quick and flexible resources that allow them to launch income-generating activities, invest in agriculture or livestock farming, or pursue training. They open doors to economic and entrepreneurial opportunities and are effective tools for youth empowerment.

Entrepreneurial Tontines for Youth: Between Advantages and Challenges

As effective forms of social and financial networking, ETs do not require strict conditions. They are flexible, offering adaptable contribution amounts and frequencies. They also enhance networking by strengthening social and professional ties. However, they face several challenges. First, there is a risk of fraud. Second, the lack of legal security can encourage dishonest practices. Finally, they may reinforce dependence on the informal sector.

Strategies for Optimizing Entrepreneurial Tontines

Given the significant impact of ETs on Cameroonian youth, it is crucial to promote digitalization to secure funds. Financial literacy training is also essential. Finally, partnerships with microfinance institutions could help transform ETs into semi-formal structures.

Conclusion

In the face of unemployment, entrepreneurial tontines remain indispensable for the economic empowerment of young people. They offer a viable alternative to the traditional banking system. With the integration of digital tools, their impact on youth entrepreneurship could be amplified, helping to fight unemployment and promote land and real estate ownership, even among workers.

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