Meeting the needs of an important segment of the poor population,

MC² - rural development microbanks are the results of research carried out by Dr. Paul K. Fokam with a view to integrating urban areas in the economic development process.

MC²s are actually set up and managed by members of a community, in respect of their socio-cultural, religious and ancestral values. Over time, MC²s have acquired maturity and know-how. The success of this initiative is owing to an objective assessment of the rural environment, as well as to the combination of African values with modern banking management techniques.

Rationale

The setting up of MC²s in African rural areas was justified by the lack of, or inadequate instruments to mobilise savings in underprivileged areas.

So, to reduce poverty in rural areas, there is need to develop instruments to increase the financial capacities of the underprivileged by enfancing their savings spirit and promote their access to loans. As a solution to this concern, MC²s are created with a view to:

• Raise the awareness of populations that they are the sole masters of their destiny ;
• Making them build to the local population their immense managerial capacity that can be derived from their cultural heritage ;
• making rural populations become self-reliant in a sustainable manner. In short, Winning the victory over poverty (VP) by putting together the means (M), the competence (C), and the community (C). Hence the formula : VP= (MxCxC) = MC².

See also the ADAF website

There are four stages in the creation process of an MC².

Opening up negotiations

After having contacted the First Bank or ADAF for information, a pilot group is constituted to promote the project. A document on the MC² model is handed over to the pilot group; a project file and an account are then opened on behalf the MC² to be created.

Preliminary field work. This field work consists in sensitizing the target population, carrying out a project feasilbility study and collecting of subscriptions to raise financial resources for the MC². (Minimum initial capital: CFA 10 million francs – membership fees : CFA 2 500 francs per member). Drafting of the list of members.

Setting up of the MC² Requesting for an authorization to open an MC² and fixing a date for the statutory meeting. Preparing working documents for the meeting and submitting a memorandum of creation of an MC² to the competent D.O. (against a receipt, upon verifiation of the required documents). Training of MC² staff and fit-up of premises to host the MC² in the area.

Opening of counters
MC² customers have access to deposit and withdrawal operations, various types of loans and purchase of Flash Cash. MC²s operate with the support of three main partners, namely :

• The First Bank, a private international bank acting as auditor and support bank;
• Appropriate Development for Africa Foundation - ADAF, a NGO in charge building the institutional capacities of MC²s;
• Rural populations in rural areas, who must take the first step to create and see to the sustainability of their MC².