THE MC˛ MODEL
A Community-based development approach
MUFFA
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About
Dr P. K. Fokam
The Model MC˛ is a community approach whereby the people, and mostly the underprivileged endeavour to be self-reliant and to create wealth thanks to appropriate financial instruments, with a view improving their living conditions in a sustainable manner. This model, designed by Dr. Paul K. Fokam with the technical support of Afriland First Bank and the NGO ADAF, is being developped in various communities since 1992 (date of creation of the first MC˛), thanks to the active contribution of local populations and of various partners. the model is based on the formula :

Victory over Poverty (VP) can be achieved provided that the Means (M) and Competences (C) of the Community (C) are pooled together

VP = M x C x C = MC˛

Variants of the MC˛ Model
The MC² Model has two variants: the first one called MC² microbanks, focusing essentially on rural areas, are rural development microbanks;
the second one is MUFFA (credit and savings cooperative for African women) meant for women living in urban and suburban areas.
Objectives

The MC² Model aims at two objectives :

  • An economic objective : economic and financial sustainability.

  • A social objective : targeting the poor, micro and small-scale activities.
Rationale
  • Sensitizing populations, and most especially the poor, on the fact that they are the ones to take their destiny at hand by finding sustainable solutions to the various problems they face;
  • Revealing to the poor the immense managerial capabilities they can derive from their cultural heritage;
  • helping the rural populations and the underprivileged women in urban and susuburban areas to become self-reliant in a sustainable manner.
Main features
  • A structural linkage between the MC˛ and MUFFA, a private bank and NGO;
  • Linkage between the formal system and informal organisations;
  • Linkage between national and international institutions;
  • Collaterals adapted to the sociocultural realities;
  • Intrerest rates compliant with the objectives of wealth creation and sustanaible development;
  • taking into account sociocultural values in modern managment.

Poverty prevails mostly in rural areas (more that 60% of population);

Rural areas have a rich potential of natural and agropastoral ressources which is yet to be exploited

Rural populations have very limited access to financial services that could enable them improve their living conditions and develop their community

In this world, women are the most victims of poverty. «More than 70% of Africans living below the poverty line are women» (RMDH, 2000);

In very needy families of urban areas, women are mostly the bread-winners;

The majority of women operate in the informal sector with no significant assistance and little access to the financial system;

The various research projects and studies carried out have clearly pointed out that extending financial services to women is a rapid means to improve the living conditions of their households.