Problem

Despite their widespread popularity and economic impact, Chamas face several challenges:​

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Loan Sharks: Most informal Chamas are managed by the local loan shark who charges rates typically 30% p.a. with no guarantor (with an item/s taken from the home) or 20% with a family member as a guarantor.​

Lack of Formal Regulation:  This lack of regulation can leave members vulnerable to fraud, mismanagement, and disputes.​

Governance Issues: struggle with issues related to governance, transparency, and decision-making. Without clear rules and procedures in place, conflicts may arise among members regarding investment decisions, fund management, and profit-sharing.​

Limited Access to Financial Services: Chamas often face challenges accessing formal financial services such as loans, savings accounts, and investment products. This can hinder their ability to grow their savings and expand their investment portfolios.​

Sustainability Concerns: Without proper planning and financial management, Chamas may be at risk of dissolution or financial collapse.