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To formalise or not: The risk behind push to formalise chamas

Stok photo of coins [Courtesy]

When it comes to financial inclusion, the strategy by mainstream banking institutions has always been to find a way to have informal engagements be formalised.

This means having the chamas, table banking, and merry-go-rounds onboarded by a regulated financial institution so that they can benefit from perks such as loans, insurance and capacity building which come with being formalised.

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