In Zimbabwe, while banks and mobile money platforms like EcoCash and ZIPIT are widely available, many people still choose to save and manage money through traditional community savings groups known as Mukando or Rounds. But why do Zimbabweans continue to trust this informal system over formal banking institutions?
Let’s explore the reasons behind this preference and the unique benefits Mukando offers.
What is Mukando?
Mukando (also called Rounds or Savings Clubs) is an informal financial arrangement where a group of individuals regularly contribute a set amount of money into a shared pool. The total amount collected is then given to one member of the group on a rotating basis. This cycle continues until everyone has received a payout.
Some groups also operate investment Mukando clubs, where the pooled funds are used for buying groceries in bulk, starting small businesses, or lending within the group at a small interest rate.
Why Zimbabweans Prefer Mukando Over Banks
1. Trust and Social Accountability
Unlike banks, which are often viewed with suspicion due to past financial instability and high service fees, Mukando is built on personal trust. Members are usually friends, workmates, church members, or neighbors. The social pressure to contribute consistently and repay any borrowed funds encourages accountability.
2. Easy Access to Payouts
Bank withdrawals can be limited by cash shortages or long queues. With Mukando, there are no delays or restrictions—members receive their lump sum on their allocated turn and can use it immediately.
3. No Bank Charges or Hidden Fees
Banks often charge monthly maintenance fees, withdrawal fees, and service charges. Mukando contributions are free from such deductions, making it an attractive option for low-income earners and informal traders.
4. Encourages Saving Discipline
Saving money alone is hard. But in a Mukando, the peer pressure and commitment to a group make it easier to be disciplined. You contribute regularly knowing someone else is relying on it, and eventually, it will be your turn.
5. Helps with Big Purchases and Emergencies
Many use their turn in the Mukando cycle to pay school fees, buy furniture, stock up on groceries, or cover medical expenses. It allows people to access a lump sum of money they wouldn’t have been able to save on their own.
6. Empowers Women and Informal Workers
R rounds are especially popular among women, market vendors, and small business owners. They create a financial safety net and provide capital to grow microenterprises without needing collateral or credit scores.
Benefits of Mukando: Summary
- ✅ Encourages consistent saving habits
- ✅ Offers access to lump sum cash for big needs
- ✅ No bank fees or account requirements
- ✅ Builds financial trust within communities
- ✅ Offers flexible rules tailored to group needs
- ✅ Fosters financial inclusion for the unbanked
Is Mukando Foolproof?
While Mukando has many advantages, it does come with risks—mainly if a member defaults or if the group lacks proper record-keeping. However, most groups operate on trust and shared values, and many have developed rules to handle such situations, including selecting a trustworthy chairperson or treasurer.
Conclusion: A Financial Solution Rooted in Community
Mukando continues to thrive in Zimbabwe because it meets real needs in a way that is practical, trustworthy, and culturally familiar. It is a prime example of how communities can come together to solve financial challenges and build resilience, especially in an economy where access to formal financial services is often limited or unreliable.
For many Zimbabweans, Mukando isn’t just about money—it’s about connection, support, and collective progress.
💡 Tip: If you’re thinking of joining or starting a Mukando group, make sure to have clear rules, keep records, and work with people you trust. It could be your first step toward financial freedom.