AboutAyuuto Group Financing
Ayuuto or Hagbad is Somali word for ‘Help’; derived from Italian word “aiuto” with the same meaning.
Ayuuto is an old Somali financial savings concept. It is an interest-free rotating savings scheme based on mutual trust, that is primarily run by women in the same neighborhood who not only know one another but also share mutual experiences.
The group members have a monthly equal/fixed contribution that is given to one of the group members on a round-robin/rotational order every month, until each member has received their share of the amount contributed.
The social lending and savings practice above is widely used in many parts of Africa and different communities call it different names. It is sometimes seen as risky, because it is unregulated and not covered by any formal financial compensation schemes, but it is also a lifeline to many, as it provides a platform for financial, emotional and mental support.