Comorian microfinance: borrowing from savings and credit cooperatives
In the Comoros, microcredit is mainly provided by the Union des Meck and the Sanduk unions of Anjouan and Mohéli, BCC-licensed mutual lenders that lend in Comorian francs to their members after a period of saving.
Three licensed mutual networks
The Central Bank of the Comoros licenses three decentralised financial institutions: the Union des Meck, present on all three islands with fourteen local branches, the Union des Sanduk of Anjouan, licensed in 2006, and the Union des Sanduk of Mohéli, licensed in 2011.
Union des Meck, the country's largest network
Wholly owned by its members, the Union des Meck is the largest microfinance network in the country, with around 55,000 clients according to the IFC. It receives many public salaries and also finances traders, craftspeople and farmers.
Sanduk, the village savings banks of Anjouan
With thirty-two affiliated local branches, the Union des Sanduk of Anjouan focuses on the rural areas of Ndzuwani. These member-run village banks grant small loans for farming, fishing and petty trade across the island.
Mohéli, a network under restructuring
The Union des Sanduk of Mohéli has four local branches and is being restructured, according to the BCC. Residents of Fomboni and the villages of Mwali can also turn to the Meck network, which operates on the island.
Joining and saving before you borrow
To borrow, you must join the branch, buy a membership share and open a savings account. The first loan is often tied to the savings accumulated and the regularity of deposits, then grows as you build a repayment track record.
Clove storage credit
In Anjouan, the Meck of Mutsamudu has offered storage credit: the grower places cloves in a secure warehouse and receives a loan worth about 75 to 80% of their value, repaid once they are sold at a better price.
Solidarity groups in Comorian markets and villages
For people with no physical collateral, some branches use joint guarantees, with several borrowers vouching for one another. This works well for women selling at the Volo-Volo market in Moroni or for fishermen from the same village.
Modest amounts and short terms
Comorian microloans finance a small shop, a motorised canoe, small livestock or a stock of goods. Repayments, often monthly, run over short periods set according to the activity financed and each branch's own lending policy.
BCC oversight of mutual lenders
Mutual lenders are supervised by the Central Bank of the Comoros, which checks their solvency and governance. Making sure a branch appears on the official list of decentralised financial institutions protects you against fake microfinance outfits.
Microcredit and farm production
Vanilla, ylang-ylang, cloves, bananas and food crops still occupy a large share of rural households. The specific needs of growers, from inputs to harvest and storage, are covered in more detail in our guide to farm loans in the Comoros.
Before the mutual lender, mutual help
Many micro-entrepreneurs start with a family loan or a tontine before joining a branch. Our page on loans between relatives in the Comoros describes these practices and the precautions needed to put them in writing.
The Burundian model for comparison
Burundi also relies on savings and credit cooperatives that are deeply rooted in rural areas. Our guide to microfinance in Burundi lets you compare membership conditions, guarantees and the role played by the central bank there.
Getting a microloan from a Meck or Sanduk
- Go to the Meck or Sanduk branch closest to your home or your business.
- Join, pay the membership share and open a savings account in your own name.
- Save regularly for the period the branch requires before making any request.
- Present your project, its budget in Comorian francs and the collateral or guarantors offered.
- Sign the contract, receive the funds and stick to the repayment schedule.
- Repay on time so you can later qualify for a larger amount.
Cost benchmarks for Comorian microcredit
| Item | Benchmark | What makes it vary |
|---|---|---|
| Membership share | Paid on joining | Rules of each union |
| Interest rate | Set by the branch | Loan type, term, security |
| Clove storage credit (Meck Mutsamudu) | 1% a month negotiated, indicative, per a study | Agreement with the cooperative, season |
| Management fees | Percentage of the loan | Product and branch |
| Compulsory savings | Locked for the life of the loan | Amount borrowed, track record |
Documents requested by Comorian mutual lenders
- National identity card
- Passport photos for membership
- Proof of address or certificate of residence
- Project description and budget forecast
- Guarantee from a member or commitment from the solidarity group
- Warehouse deposit receipt for storage credit
Common microfinance mistakes in the Comoros
- Using a microloan meant for trading to pay for a family ceremony, then lacking the takings needed to repay it.
- Asking for a loan as soon as you join without building up the required savings, which leads to a refusal or a very small amount.
- Trusting a so-called microfinance outfit missing from the BCC list that charges high registration fees.
- Acting as joint guarantor for a neighbour without realising your own savings can be withheld if they default.
Comorian microfinance: practical answers
What is the difference between Meck and Sanduk?
Both are savings and credit mutuals licensed by the BCC. The Union des Meck operates on all three islands and also serves salaried workers, while the Sanduk are village savings banks in Anjouan and Mohéli focused on rural communities.
Do you need to be an employee to borrow from a Meck?
No. The Meck also lends to traders, craftspeople, fishermen and farmers. An employee can domicile their pay as security, while a self-employed worker relies on savings, a guarantor or an asset, together with proven regular takings.
Do Comorian mutual lenders lend to women traders?
Yes. Women who sell at markets or process farm produce are among the branches' clients. Solidarity groups and regular saving allow them to obtain small amounts without a land title or a domiciled salary.
Can you join a Meck from abroad?
Membership is normally done at a branch with proof of identity. A member of the diaspora can, however, pay money into a relative's account by transfer, helping that person build up the savings required before a first loan.